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E&O Run Off Cover

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Your client may find themselves liable for E&O claims for many years after they stop operating.  In most cases their liability ends after six years – but under certain circumstances they could be liable for 20 years or more; depending on their regulated body.

In such instances, we specialise in arranging ‘Run-off E&O insurance’ where the holding or expiring insurer is not willing to offer a suitable run off solution. Run-off cover is required because E&O insurance policies are written on a ‘claims made’ basis – this means that it is the policy in force at the time a claim is notified that is the relevant policy.

Often, throughout North America - it is a legal requirement of many professional bodies, that regulated firms retain run-off PI cover after they have stopped operating (through retirement, sale or merger of the company). It is the legal responsibility of the professional to ensure that cover remains in place.  Professionals leaving a firm should ensure that cover will be provided and that they will be notified by their previous practice if cover ceases for any reason. 

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