Run Off Cover

Your client may find themselves liable for Liability 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 specialize in arranging ‘Run-off Liability insurance’ where the holding or expiring insurer cannot offer a suitable run-off solution. Run-off cover is required because insurance policies are written on a ‘claims made’ basis – this means that it is the policy in force when 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 the body will be provided and that their previous practice will notify them if cover ceases for any reason.

Run Off Cover