CUSTOMER NOTICE
Please note that our team are partially working from home to help prevent the spread of coronavirus. In the event you experience any difficulties in contacting Qdos via telephone, please email [email protected] and a member of the team will return your call as soon as possible. Until further notice, our contact hours are reduced to 8:30-18:00 Monday-Friday. We apologise for any inconvenience caused. Click here to find out more.

Please note that office will be temporarily closed from 4pm Friday 5th March 2021 until 8:30am Monday 8th March 2021.We apologise for any inconvenience caused.

Feefo Gold Merchant

​Professional Indemnity Insurance

 

​Retroactive Cover

Retroactive Cover
Scroll
 
Contact Qdos Contractor:0116 269 0999
 
 

Professional Indemnity FAQs

 

Do You Need Retroactive Cover?

Retroactive cover refers to coverage for services undertaken previously i.e. prior to the policy start date.

Professional indemnity insurance will include an exclusion whereby any claims relating to services provided prior to the ‘retroactive date’, as noted on your policy schedule, are excluded.

This is important as for the majority of professional negligence claims it is possible for a claim to be brought against you for services provided up to 6 years ago. For example a bookkeeping error which is not realised until HMRC open an enquiry.

There are certain circumstances in which the time limits would differ if the negligence only becomes apparent at a later date. It is possible to bring a claim outside the six-year limitation period if the damage complained of was not discovered until after the expiry of this period. This is known as 'latent damage', and in these circumstances the claimant has three years from either the date of knowledge of loss or the date when it ought to have reasonably known about the loss. What constitutes what 'ought reasonably to have been known' depends on the circumstances of the case, and specific advice should always be sought.

There is a final time limit of 15 years from the date of the defending party's negligent act or omission.

Professional Indemnity insurance operates on a ‘claims made’ basis which means it is the policy in force at the time the claim is made, for example when the negligence proceedings are brought against you, that will react to the matter and not the policy in force at the time of the negligent act. This is not a familiar concept to most contractors as it is not applicable to all insurance policies. For example, notwithstanding the policy terms and conditions, Public Liability will cover you for incidents that occur during the period of insurance, regardless of when a claim is brought. Some policies such as Qdos Tax Liability Cover will automatically cover exposure for previous years.

Therefore if you have undertaken services prior to the policy start date, you should be sure to note the ‘retroactive date’ that will apply to the policy.

 

​What is a retroactive date on professional indemnity insurance?

 

If you are an IT professional e.g. IT Contractor, during your Professional Indemnity Insurance application you will be prompted to ‘Cover past work’. If you opt to do so, or if you are not providing IT services and purchase Professional Indemnity insurance, your retroactive date will be shown as “none” on your policy schedule.

This is to say that cover is not limited to acts or omissions the policyholder makes after a specified date and you would be covered, subject to policy terms and conditions, regardless of the date of the negligence act or omission.

If a date is applied on your policy schedule, this means that you are only covered by the policy for work carried out on or after this date.

​Do I need retroactive cover?

 

For Qdos Professional Indemnity Insurance, retroactive cover is provided as standard with all non-IT trades.

For those providing IT services, you can add 'Cover For Past Work' for a small additional premium.

If you are an IT contractor and require cover for work you have undertaken prior to the policy start date, bearing in mind that previous Professional Indemnity insurance policies you may have held would not react after they expire, it would be prudent to select cover for past work. This will be particularly relevant in the following circumstances:

  • You have had a gap in your cover. 
    - e.g. if you have failed to renew a Professional Indemnity insurance policy you may have held in the past.
  • You have changed insurance provider to Qdos from another company.
    - Once your policy with your previous provider has expired, it is highly unlikely you will be unable to make a claim should the need arise.  As such, you should ensure that your new policy covers you for the time you were insured with another provider.
  • If you have not previously been insured.
    - If you have provided services in the past which require cover under your new policy, retroactive cover must be included.
Scroll
 

The Company

 

About Us

Why Qdos?

 

Qdos Contractor are one of the leading providers of specialist contractor insurance services in the UK. Our online application process takes only a matter of minutes with all documentation issued instantly. Unlike many other brokers, we don’t hide our premiums until you've provided your details, as we are confident that our premiums, service and product are the best in the market. In addition, Qdos Contractor is one of the leading authorities on the IR35 legislation and have handled well over 1,500 IR35 enquiries on behalf of UK contractors.

 

Our History

 

Qdos began in 1988 as a tax consultancy business and has grown significantly over the past two decades, providing expert business services, products and advice. Over the years, Qdos has grown in both size and reputation as a trusted contractor insurance broker as well as an expert tax advisor. Our aim is to provide UK contractors with the assistance and service with IR35 issues they need as well as sustaining excellent quality and competitive premiums in the contractor insurance market.

Need Help?

 

Call our team on 0116 269 0999
Or arrange a call back

Call back
Chat with us