Retroactive Date

The retroactive date is the earliest date from which your claims-made insurance policy will cover incidents. Any event that occurred before this date is not covered, even if the claim is made during the current policy period.

It’s a critical detail in professional indemnity insurance. If you don’t know your retroactive date, you don’t fully understand your cover.

Why It Matters

• It determines how far back in time your current policy will protect you.
• Work you completed before your retroactive date is not covered, full stop.
• Switching insurers can sometimes result in a new (later) retroactive date, which shrinks your protection.
• Maintaining continuous cover with the same insurer (or negotiating to keep your retroactive date when switching) protects you for past work.

How It Works

• You first took out PI insurance on 1 July 2020. Your retroactive date is set to 1 July 2020.
• You renew with the same insurer each year. Your retroactive date stays at 1 July 2020.
• In 2026, a client makes a claim about work you did in 2021. Your current policy responds because the work falls after your retroactive date.
• If you had let your policy lapse in 2023 and started a new one in 2024, the new policy might set the retroactive date to 2024, meaning the 2021 work would not be covered.

Simple Examples

• An accountant has held continuous PI cover since 2018. A client claims in 2026 over tax advice given in 2019. The retroactive date of 2018 means the claim is covered.
• An IT consultant switches insurers in 2025. The new insurer sets the retroactive date to 2025 instead of honouring the original 2020 date. Any claims about work done between 2020 and 2025 are now not covered.
• An architect lets their PI policy lapse for six months, then starts a new one. The new policy’s retroactive date is the new start date, creating a gap in cover for all previous work.

Common Mistakes or Misunderstandings

• Not checking the retroactive date when switching insurers. Always ask the new insurer to match your existing retroactive date. If they won’t, think carefully before switching.
• Assuming past work is always covered. It’s only covered if the work was done on or after your retroactive date.
• Letting your policy lapse. Even a short gap can reset your retroactive date, leaving years of past work unprotected.
• Confusing retroactive date with policy inception date. They might be the same, but they might not. The retroactive date can be earlier than the current policy start date if you’ve maintained continuous cover.

When to Speak to a Broker

If you’re switching PI insurers, renewing after a gap, or not sure what your current retroactive date is, your broker can check and make sure you’re not losing cover for past work.

Need help?

If you want to check your retroactive date or make sure your PI cover protects you for past work, reach out to Tank Insurance and we’ll review it for you.

Related Terms

• Claims-Made Policy - The retroactive date only applies to claims-made policies, which is how professional indemnity insurance works.
• Run-Off Cover - If you stop practising, run-off cover extends your protection for past work beyond the retroactive date.