- Retroactive cover provides the Insured with cover for claims arising from events that occurred before the start date of the policy (provided that the Insured did not already suspect there would be a claim).
- An event giving rise to a claim must occur on or after the Retroactive Date. The policy provides no cover for events which occurred before the Retroactive Date.
- Sometimes the Retroactive Date coincides with the date the policy started (i.e. the Retroactive Period coincides with the Period of Insurance).
- There are, however, times when the Retroactive Date is earlier than the policy inception date: the Insured may have cover for liability in respect of events which occurred before the policy started (i.e. before the Period of Insurance) but of which the Insured only became aware during the Period of Insurance.
- Retroactive Dates are only found on Claims-Made liability policies. They are not found on Losses-Occurring liability policies.
Introduction to Liability