Retroactive Liability Insurance

What Does Retroactive Liability Insurance Mean?

Retroactive liability insurance (or retroactive cover) is a policy that covers a loss that happened before the insurance was purchased. The coverage can include liability for an incident related to a property or a person that has not yet been reported to an insurance company.

Insuranceopedia Explains Retroactive Liability Insurance

A patient sues a doctor for malpractice before the doctor has even bought a professional indemnity insurance policy. A person sues a neighbor for property damage when that neighbor’s property insurance has already expired. These are cases suitable for retroactive liability insurance.

Not all insurers offer retroactive liability insurance, and even those that do may offer it only after thoroughly studying the risks involved.