Here’s a short article from Berkley Insurance on the definitions of Retroactive Dates and why they are important.
Professional indemnity insurance provides cover for professionals to protect them against losses from a breach of professional duty.
Professional indemnity insurance is a claims-made and notified policy. This means if the insured receives notice of a claim during the policy period, the claim must be notified to the insurer before expiry of the policy period. If a claim notification is received after the expiry date of the policy, the policy will not respond.
Professional indemnity policies generally have a retroactive date. This is the date after which the breach of professional duty will be covered by the policy. On the other hand, breach of professional duty occurring before the retroactive date will not be covered.
There are three common types of retroactive date: