Why do I need retroactive cover?

We urge you to download and read our “Notes on the nature of claims’ made cover” for our comprehensive advice.

Due to the nature of claims’ made cover (which is the basis of your cover), you will need to have cover in place:

  1. At the time that you render the services which give rise to the claim; and
  2. At the time that you first become aware of the circumstances or incident which could give rise to a claim and notify it through to us in writing; and
  3. Between a. and b. above, i.e. cover should be continuous and there should be no ‘gaps’ in your cover.

In short, the policy that you have in place on the day a claim is made against you or when you become aware of an incident or circumstance which could give rise to a claim or complaint against you – and report it to the insure – (whichever occurs first) is the policy that will apply to cover the claim, regardless of when the services were rendered which have given rise to the claim or potential claim (as long as the services were rendered after the retroactive date).

If you do not renew a claims’-made policy or place the policy on run-off and a claim arises after the expiry date, you will have no entitlement to cover under the policy, unless you notified your insurers in writing of the potential claim prior to your policy lapsing and they accepted that notification and registered it against your policy. This applies even where you had cover at the time the work was undertaken.

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