Run-Off Cover Explained
What exactly is run-off cover in PI insurance?
Run-off cover (also called 'tail cover') is professional indemnity insurance that continues after you stop practicing. When you retire, close your business, or exit a profession, your standard PI policy ends. But clients can still sue you for work you did years earlier. Run-off cover protects you against these historic claims. Example: you retire as an architect in 2025. In 2029, a client discovers your 2018 design was defective and sues for GBP500,000. Without run-off cover, you're paying personally. With it, your insurer covers the claim. Run-off cover is essentially extended liability protection for your professional history.
When do you actually need run-off cover?
When you stop practicing professionally. If you retire, cease self-employment, close your business, or leave your profession, you need run-off cover. Even if you're certain no claims will come, a single claim could be catastrophic. Most professional bodies require it. Solicitors, accountants, architects, and regulated professionals are often required to maintain run-off cover for 6-12 years after ceasing practice. Unregulated professionals should maintain it for at least 6 years (the typical limitation period for claims). Some industries have longer periods--construction professionals might need 12-15 years because claims can emerge long after defects appear.
How much does run-off cover cost and how long do you need it?
Run-off cover typically costs 50-300% of your standard annual premium, depending on your profession and chosen tail period. A solicitor paying GBP2,000/year might pay GBP1,000-GBP6,000 for a 7-year run-off tail. The cost depends on: your chosen tail period (6, 7, 10+ years), your claims history, your profession's claim frequency, and any previous claims. Most professionals choose 6-7 year tail periods because UK's 6-year limitation period means most claims would have been brought. High-risk professions like construction choose longer (12+ years). You pay the run-off premium once (sometimes split over first few years), then you're protected for the tail period. This is often called 'claims made' extended--you're covered for old work if the claim is made during the tail period.
Get Quotes"Run-off cover is the insurance you hope never to use. But when you're retired and a claim from 2015 work emerges, you're absolutely glad you bought it. It's often a legal requirement anyway, but even where it's not mandatory, it's essential."
- Partner, professional services firm
Frequently Asked Questions
For regulated professions (solicitors, architects, accountants), usually yes. For unregulated professionals, it's recommended but not legally required.
Yes, but it's more expensive and underwriters scrutinize your claims history more carefully. Buy it before you stop practicing.
At least 6 years (standard limitation period). Some professions require 7-12 years. Check your profession's requirements.
Your estate is still covered. Beneficiaries or representatives can claim under the run-off policy if claims arise.
Typically no. It covers work done during the period your original policy was active. Work before you had insurance isn't covered.