The retroactive date on your professional indemnity policy is usually the start date of your business or the inception date of your first professional indemnity insurance policy. If you are getting alternative quotes at renewal, check that the retroactive date is correct. If unsure, discuss it with your insurance broker. The reason a professional indemnity insurance policy sometimes has a retroactive date is because it is written on, what is known as a 'claims made' basis. This means that, unlike other liability insurance policies, it only covers you for claims that are made during the period of insurance. If the insurance is cancelled or cover ends for some reason, there won't then be any cover if a claim comes in. Because of this, if your company ceases trading or you decide to sell it, it's important to consider buying run-off cover to protect you in case a claim comes in for previous work.