Professional Indemnity (PI) Run-Off Cover Insurance Quotes
Thinking about selling your business or retiring?
Run-off cover is an essential form of Professional Indemnity (PI) insurance that protects businesses from future claims made against them after they have ceased trading. It ensures that work completed while the business was operational is still insured, even though no new business activities are being conducted. At Clarke Williams Ltd, we provide tailored run-off cover solutions for businesses winding down or merging, helping you manage potential liabilities long after your doors have closed.
What is Run-Off Cover?
Run-off cover, or run-off insurance, protects a company after it has ceased operations, ensuring any claims related to past business activities are covered. As claims can arise years after work has been completed, run-off cover is critical for businesses closing, retiring professionals, or companies merging with others. It ensures that even if the business is no longer trading, its liabilities remain covered for work completed before closure.
When Should You Purchase Run-Off Cover?
There are specific scenarios where run-off cover is crucial:
• Closing a business: If you’re ceasing operations, run-off cover provides ongoing protection for past work.
• Company mergers or acquisitions: If your business is being acquired or merged, it’s essential to secure run-off cover to protect against claims from previous activities.
• Retirement: For professionals such as architects, accountants, or consultants, run-off cover ensures liabilities from your past work are still insured.
Although run-off cover is not a legal requirement for most industries, it is often mandated by professional bodies or included as part of contractual agreements to ensure protection against potential future claims.
By securing run-off cover, you remain insured against any future claims, even if they arise years after the business has closed its doors. This peace of mind is crucial for anyone looking to protect themselves and their past work.
What is a Claims-Made Basis?
Professional Indemnity policies, including run-off cover, operate on a “claims made” basis. This means that the policy must be active when the claim is made, not when the work was carried out. Even if an issue arises years after the business has ceased operations, a valid run-off policy ensures protection against claims. Without run-off cover, businesses and professionals remain exposed to financial risks long after they stop trading.
Multi-Year Run-Off Policies
We are pleased to offer a multi-year run-off policy solution through our partnership with Custodian. This option allows businesses to secure up to 5 or 6 years of coverage with a single payment, removing the need for annual renewals. This product is particularly advantageous for businesses looking to avoid future premium increases or complications with renewals after the company has ceased trading.
Key Benefits Include:
• One-off purchase: No need for annual renewals.
• Available across sectors: Suitable for professionals in property, insurance, engineering, IT, and more.
• Post-closure protection: Ensures liability protection even after operations have ceased.
What Information is Needed?
To provide run-off cover, the process is similar to obtaining a new Professional Indemnity (PI) policy. We will require a completed proposal form and a full claims history to assess the risk. In some cases, we may be able to offer a quote based on your existing documentation, such as your current policy schedule or statement of fact, but having these details will ensure the quote is accurate and tailored to your needs. Providing this information upfront helps us secure the best possible terms for your run-off cover.
Frequently Asked Questions (FAQ)
What industries need run-off cover?
Industries where past work can lead to future claims should consider run-off cover, including:
• Accountants
• Architects
• Surveyors
• IT professionals
• Engineers
• Solicitors
These professions often face contractual obligations to hold PI insurance after ceasing operations due to the nature of their advisory or project-based work.
When is Run-Off Insurance Not Required?
Although run-off cover is not a legal requirement for most industries, many professionals have contractual obligations or industry guidelines that require it. For example, professional bodies or former clients may require you to maintain PI insurance for several years post-closure.
How Long Should Run-Off Cover be Held?
Typically, run-off cover is held for 6 years, as this is often the statutory period within which a claim can be made. That being said we can provide policies for shorter period such as 2 or 3 year .
However, depending on your industry or contractual obligations, you may need cover for a longer period, particularly for professionals in high-risk sectors. Clarke Williams Ltd offers flexible multi-year policies, providing comprehensive protection tailored to your business needs.
What happens if I don’t have run-off cover?
If you don’t secure run-off cover, you are left exposed to any claims made after your business closes. Even if no new work is being undertaken, claims relating to past services could still arise. Without cover, you would be personally liable for any legal and compensation costs, which could be financially devastating.
At Clarke Williams Ltd, we understand the importance of securing adequate protection for your business, even after it has ceased trading. Run-off cover is an essential safeguard, ensuring your past work is protected from future claims. We offer flexible, multi-year policies tailored to your specific needs, so you can rest assured that your liabilities are covered.
If you would like to explore run-off cover or need a bespoke solution for your business, please get in touch with our expert team today.
Clarke Williams Ltd: Securing Your Business’s Legacy




