Claims-made means your PI policy covers claims made against you while the policy is in force, and that you notify during that period. It does not matter when you did the work, as long as it was after your retroactive date. The policy that responds is the one you hold when the claim arrives.
Source: https://piinsurance.com.au/claims-made/, fetched from the preview https://pi-react-4ee768.pages.dev/claims-made/ on 10 Nov 2026; site dated 3 Nov 2026. Preview wording, not yet broker-reviewed. General information, not advice.
Key points
- Your policy covers claims made and notified while it is in force.
- When you did the work does not matter, if it was after your retroactive date.
- If you stop PI, a later claim may have no policy to respond. The policy in force when the claim is made and notified responds, for work done after the retroactive date.
A simple timeline
Priya is a self-employed engineer. Here is what happens to one job.
- March 2025. Priya designs a retaining wall. She holds a PI policy from 1 July 2024 to 30 June 2025.
- July 2025, July 2026 and July 2027. She renews each year with no break. Her retroactive date stays at 2020, when she first bought PI.
- August 2027. The wall cracks and the owner's lawyer writes to her, claiming the cost of repairs.
- Which policy responds? The 2027 to 2028 policy, the one in force when the claim is made and she tells the insurer. Not the 2024 to 2025 policy that was in force when she did the work.
If Priya had stopped her PI in 2026, there would be no policy in force in August 2027. Unless she had bought run-off cover, she might have to pay for her own defence and any settlement. Run-off cover explained.
Why PI works this way
Professional mistakes often surface years later: a design fault, an error in a tax return, a missed clause in a contract. Insuring the claim date lets the insurer price today's risk and ask what you know today. It also means your limit is set at today's values, not at what seemed right years ago.
The "and notified" part
Most Australian PI policies are claims-made and notified. You must tell the insurer about the claim during the policy period. If you sit on a letter of demand until after renewal, you can create problems for yourself. Tell your broker or insurer as soon as you can.
Notifying circumstances early
You do not need to wait for a formal claim. If you become aware of something that might lead to a claim, such as a client complaint or a mistake you spot yourself, you can notify it as a circumstance. If you give the insurer written notice of the facts as soon as reasonably practicable after you become aware of them, and before the policy ends, a claim that later arises from them can be covered by that policy, even if the claim arrives after the policy ends. Send the notice to your broker or your insurer, and keep a copy. What to do if a client complains.
What this means for you
- Keep PI running without a break while you are working.
- Answer renewal questions about known problems fully.
- Notify circumstances in writing as soon as you know of them, and before the policy ends.
- When you stop working, think about run-off cover.
Common questions
Which PI policy covers a claim about old work?
The policy in force when the claim is made against you and notified to the insurer, provided the work was done after the retroactive date.
Is public liability claims-made too?
Usually not. Public liability normally covers injury or damage that happens during the policy period, whenever the claim is made.
Can I notify a problem before it becomes a claim?
Yes. Notice in writing, given as soon as reasonably practicable and before the policy ends, can mean that policy responds to a claim that arises from it later.