Reinstatement

The restoring of a Policy to full force and effect. A reinstatement may be available to a policy where the limit of indemnity has been exhausted as a result of claims. The number of reinstatements is set out at the inception of the policy.

Reinsurance

Insurers reduce their exposure to Risk by insuring themselves against Claims. The practice is known as Reinsurance which accounts for more than half of Lloyd's total business.

Retro Date

Many "claims made" policies incorporate a retroactive date. This effectively excludes claims arising from things done or that ought to have been done before the retro date, or often claims arising out of contracts entered into before the retroactive date. It is normal for an insurer to apply a retroactive date of inception on the policy if there has been no prior cover.

Retroactive

If a policy is retroactive it provides cover for work undertaken before the inception of the policy. See Retro Date.

RIBA

Royal Institute of British Architects.

RICS

Royal Institute of Chartered Surveyors.

Run-off

The provision of cover for a business that no longer trades but still has a liability for its past activities. Cover is usually maintained for six years, however, longer period are often recommended.