If your professional liability insurance does not have a retroactive date, you have „full coverage“. This means that your insurer responds to claims against you, regardless of when the harmful or injurious events that led to their filing occurred, as long as the claims are filed after the start of your coverage and you did not know that these rights will be invoked when you entered into a contract with your insurer. Remember that many invoked policies contain a retroactive date that limits the types of claims that are covered. Claims are only covered if they result from acts that occurred on or after that date. If your policy contains a retroactive date, make sure you know what it is and understand how it affects your liability coverage for potentially costly claims. In September 2020, two complaints will be filed against Divine Designs. One refers to an incident that occurred in June 2010. Although this may seem like an uncomfortable expense, the cost of the premium is low compared to the cost of a claim and a large number of claims are claimed against contractors several months (or even years) after the act of negligence. If you don`t maintain coverage, you could receive a thousand-pound bill for attorneys` fees just to defend yourself, as well as other fees to pay your client as compensation. Prospective reinsurance is a reinsurance contract covering future losses resulting from insurable events. Prospective reinsurance is different from retroactive reinsurance, which covers damage caused by insurable events that may have occurred in the past. . .