A retroactive date determines how far back an engineer’s Professional Indemnity policy can respond to professional work, subject to the policy wording.
For example, if the policy has a retroactive date of 1 July 2018, work performed before that date may fall outside cover.
A retroactive date is not the same as the start date of the current policy.
This becomes particularly important when an engineer:
- changes insurers
- buys or sells an engineering business
- changes business structure
- returns to practice after a break
- arranges PI Insurance for an established practice for the first time
Professional Indemnity policies are commonly written on a claims-made-and-notified basis. A claim may arise years after the engineering work was completed, so maintaining continuity of cover and the correct retroactive date can be critical.
When changing insurers or restructuring a business, the retroactive date should be checked before the old policy is allowed to lapse.
Need help with protecting continuity around your retroactive date? #
See our Professional Indemnity Insurance for Engineers page, review the engineering insurance FAQs, or request a written quote.
