Run off cover

Everything you need to know about Proessional Indemnity Insurance Off cover.


One thing I get a lot of questions about is Run Off Cover.

“I am about to finish practicing but I am not sure what to do about my Professional Indemnity Insurance?”

Run Off Cover, the elusive beast of the business insurance world. Not, really. It is just like professional indemnity insurance but a little bit different. So first, let’s cover off one of the basics of professional indemnity insurance.

Firstly, Professional Indemnity Insurance is underwritten on what is known as a claims made basis. What that means is, you are only covered if a claim is made against you and you have a current active policy.

Let’s say for example, an engineer did some work in 2015. Then in 2016, they had a fantastic offer to sell the business so they sold up. Then in 2017 there was a claim made against them for an error or omission they made during their work back in 2015. In 2017, when that claim is made against them unless they have Run Off Cover, they would personally have to fork out the cash to defend themselves against that claim.

So, just because you may have hung up the boots, sold the business or retired, it doesn’t mean the impact of your work just ends and that is why we have Run Off Cover.

“I know I need Run Off Cover but how long do I need it for?”

Depending on what you do for work, and how much work you have done the amount of time you will need cover can really vary. The best thing to do is speak to your broker or governing body and they will be able to give you an indication of how long you will need it for.

So, Run Off Cover is basically a Professional Indemnity Insurance policy designed specifically for work you have done in the past because you may have retired, hung up the boots or sold your business. If you have any more questions about Run Off Cover or Professional Indemnity Insurance, send us an email and we will be in touch.

The Quick Answer

What is Professional Indemnity Insurance
Run Off Cover?

Professional Indemnity Insurance Run Off Cover is a policy designed specifically to provide protection for work that you have done in the past. If you have retired, sold your business or just moved on, it is there to protect if a claim is made for an error or omission you may have made in the past.

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