Professional Indemnity

Professional Indemnity: What is Retroactive Cover?

In this growing business environment, professional indemnity insurance has become the true necessity. Professionals working in all kinds of industries need to attain a high standard in today’s cut-throat competitive market. In case, a professional commits a mistake or causes negligence, error or any other kind of misconduct, taking appropriate insurance protection can be really helpful. In some countries, taking professional indemnity is compulsory.

Retroactive cover is a kind of professional insurance cover for the claims that arise out of work which was taken prior to the commencing date of the ongoing insurance policy. Such type of insurance cover is helpful in getting additional coverage from unforeseen situations. For this type of insurance, cover can only be confirmed after receipt of a declaration, at inception or renewal, that you are not aware of any circumstances which could give rise to a claim.