Submitted to ADEQ to meet financial responsibility requirements, commercial liability insurance policies include a retroactive date, the date that coverage begins.

What is a retroactive date?

A retroactive date, or retro-date, is:

• The date from which you have held uninterrupted professional indemnity insurance coverage (even if you changed insurers 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 the retroactive date will not be covered by your insurance.

Statute¹ states a retroactive date must match or predate:

• the date of the most recent baseline assessment or comparable site characterization,
• the date of the UST system installation, or
• the earliest coverage date of the previous insurance policy or alternative financial responsibility mechanism.

Where can I find the retroactive date?

Typically there is a retroactive date in a tank schedule. If it is not listed in the tank schedule, it is acceptable as long as it is listed on another official policy document and compliant with statute.

What if the retroactive date doesn't meet requirements?

When facilities do not meet financial responsibility requirements, it's typically because of new ownership, no record of financial responsibility submitted to ADEQ, or a lapse in tank policy coverage.

To comply with requirements:

• Work with your insurance broker to help you backdate to the tank system install date or retroactive coverage date of your previous insurance policy.
• Have an ADEQ Underground Storage Tank Baseline Assessment² conducted at the site. This can establish a retroactive date. A baseline assessment addresses likely release areas, includes information to determine the current environmental condition of the property, and is conducted under the direction of a professional registrant (i.e., professional engineer or registered geologist) | View/Download Baseline Assessments Guidance >

Download Print Version of this Information | View/Download >

¹ Arizona Revised Statutes (A.R.S.) § 49-1006.01.C | View >
² A.R.S. § 49-1052 | View >