Does your professional indemnity insurance provide retroactive cover?
If you are a registered tax or BAS agent, from 1 July 2015 your professional indemnity (PI) insurance policy must include ‘retroactive’ cover.
Retroactive cover provides insurance for any claims which may arise prior to the start date of your current policy.
From 1 July 2015, when you take out, change or renew your PI insurance your policy must include retroactive cover to the earlier of:
- the retroactive date specified in the current PI insurance policy you are renewing, or
- the start date of your first PI insurance policy if you have had a series of continuous policies.
Example – retroactive cover
Sally is a registered tax agent and holds a PI insurance policy that she renews every year, and it is due for renewal in August 2015. Sally has continuously held PI insurance since 1 May 2010, however, that policy did not include retroactive cover. When Sally renews her policy in August 2015 she needs to make sure that her new policy has retroactive cover to 1 May 2010.
Last modified: 2 October 2014