Professional indemnity: claims-made cover and the retroactive date
What does claims-made mean?
A claim made in 2026 about advice given in 2023 is handled by the 2026 policy, provided the advice was given after the retroactive date and the claim is notified in time.
What is the retroactive date?
It is the earliest date of work the policy will cover. A policy with a retroactive date of 1 January 2020 will not respond to work done before then.
| Situation | Effect |
|---|---|
| Retroactive date kept on renewal | Past work stays covered |
| Retroactive date moved forward | Earlier work loses cover |
| Policy lapses | No cover for new claims, even on old work |
What happens when the business stops or is sold?
Run-off cover keeps the firm protected for claims about past work after it stops trading or is sold. It is arranged before the policy ends.
Who needs PI?
Consultants, engineers, architects, accountants, technology providers, and any firm whose advice or service could cause a client financial loss. Some contracts and professional bodies require it.
Frequently asked questions
Should circumstances be notified before a claim?
Yes. Notifying a circumstance that might lead to a claim, within the policy period, preserves cover under that policy.
Related cover
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.