This professional indemnity insurance cover will provide protection for your business in the event of claims for professional error, omissions, or professional neglect towards a third party to whom you owe a duty of care. Failing to have professional indemnity insurance will expose you and your company to the risk of being taken to court and sued for a variety of claims such as breach of confidentiality, libel, slander and professional neglect. 

A retroactive date is the date from which you have held uninterrupted professional indemnity insurance cover (even if you changed insurer during this time) or a date in the past from which your insurer has agreed to cover you. Any claims that arise from events prior to this date is not covered by your insurance.

Professional indemnity insurance is underwritten on a claims-made basis, which means that there must be a policy in force for you to make a claim. If your short terms contract finishes and you cancel the policy, you will not be covered for the work you have undertaken. 

Professional indemnity is not a legal requirement. However, when bidding for a contract most companies will insist on a contractor/consultant having professional indemnity insurance cover in place.