A retroactive date is the date from which you have held uninterrupted professional indemnity insurance cover (even if you changed insurer during this time) or a date in the past from which your insurer has agreed to cover you. Any claims that arise from events prior to this date is not covered by your insurance.

What is the purpose of retroactive date?

Most Commercial General Liability “claims-made” policies have a retroactive date. The main purpose of the retroactive date is to eliminate coverage for situations or incidents known to the insured that has the potential to give rise to claims in the future, i.e. to prevent the purchase of retroactive insurance.

What does no retroactive date mean?

A policy that does not include a retroactive date affords full prior-acts coverage. This means it covers claims arising from acts that happened before the inception date of the policy, even if the acts occurred long ago.