Professional Indemnity (PI)

Retroactive Date Explained

Reading through an insurance policy can often seem a formidable task. Laden with an involved and intricate lexicon of industry jargon, it is often difficult to decipher the important information. Amid a slew of limits and excesses, insuring clauses, and extensions, sit a series of important dates used to determine the period of coverage being offered. While the “Effective Date” and “Expiration Date” of a policy are easily recognised and understood as the dates on which the policy’s coverage begins and expires, respectively, the “Retroactive Date” is less well understood.

The retroactive date is a key term included in every liability policy written on a “claims-made” basis. A policy offering claims-made coverage will only cover claims that are reported during the policy period. Such a policy would not cover claims filed before or after the active policy period, regardless of when the loss occurred. Under a claims-made policy if the insured fails to immediately report a claim or circumstance that may give rise to a claim, they may forego their right to indemnity.

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Does your IT Liability Insurance provide the right protection?

Information Technology Liability Insurance is essential for any IT organisation or company, providing a unique combination of Professional Indemnity Insurance and Public & Products Liability cover. However, the host of products available makes it difficult to determine which policy will meet the needs of your organisation and provide you with the right level of protection.

The key is to simply ask the right questions in order to determine which policy is right for you.

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PI Insurance for freelancers

With flexibility, power and a greater potential for earning, freelancing is a highly appealing career choice. It gives individuals greater responsibility and ownership, as well as allowing for sole business decision making.

However, like any job, there are always less positive elements that one must consider. Job security and stress comes to mind for most, yet risks that can be mitigated by implementing an insurance program are often overlooked.

When a freelance consultant offers a specific service or specialist expertise, they owe a duty of care to those relying on them for that particular advice or job. Dissatisfied clients or those claiming to have suffered a loss on account of the freelance work could hold the individual financially liable.

To safeguard both a freelance business, as well as the freelancer’s personal assets, it’s crucial to secure Professional Indemnity (PI) insurance, which offers protection against client claims.

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Professional Indemnity Insurance: The Basics

There is a common misconception that Professional Indemnity Insurance policies are standard and provide similar coverage. Unfortunately they are not; they must be carefully selected or tailored to suit your individual needs.

Large companies often have a better understanding of their exposures and policy differences and are aware that not all policies are the same. More often it’s the little guy that faces challenges. So where do you start? Do you go online or approach a broker and get two or three quotes and do you go with the expensive option? With a basic understanding of how these policies can vary and what to look out for you would be in a better position to know which product and provider is best for you.

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