What is run-off cover? What is run-off cover?

If you provide advice, expert services or medical care you may benefit from this type of insurance. This includes medical professionals, consultants, architects, accountants and other executives who could potentially face claims for their past work.

Professional indemnity cover, directors’ and officers’ cover, and some other types of insurance are usually written on a claims made basis. This means you’re only covered if the incident and the claim against you happen while the policy is active.

So, if your policy ends and a claim is made six months later, then you’re not covered. If you have run-off cover, however, you could be covered.

Learn more about claims made insurance.

Run-off cover can protect against legal claims that arise from advice, guidance or expertise you provided while you were still working.

It may help to cover any associated legal costs if a third party accuses you of professional negligence, including mistakes or disputes arising from the care or services you provided.

Remember, while business insurance covers a range of eventualities and circumstances, it doesn’t cover everything. Please make sure to read your policy documents carefully to understand the full details around exclusions, terms and limits of your cover.

You’d usually buy run-off cover when:

• You’re closing or selling your business
• You’re retiring or changing careers
• A company is being wound up or struck off
• You’re stepping down from a director role

Run-off cover will last for a set number of years after you retire, sell or close your business. It kicks in once you’ve notified your broker or insurance company that you are no longer working.

In the event a third party makes a claim after you’ve stopped working, the run-off cover is activated to support you in dealing with it.

The cost of run-off cover depends on the limit of cover you choose and the services you offer.

Your profession, the size of your business and the level of risk associated with your work may also be factors in the cost.

You can find out how much run-off cover will be if you took a policy out with Superscript by starting a quote. Building a quote only takes a few minutes and is customised based on your business needs — this means your quote will be unique to you.

Your current professional indemnity, medical malpractice and directors’ and officers’ policy might include an option for run-off cover. If not, you may want to consider a separate run-off policy.

Once you know when you’re going to retire, sell or close your business, you’ll need to inform your insurer or broker.

If you're buying run-off cover, it’s important that there's no gap between when your original policy ends and the run-off cover begins.

The length of time you may want to hold run-off cover for depends.

Some professions, like lawyers, accountants and architects, may have rules around the length of time they need to hold run-off cover for. Other professions may be more flexible.

But generally speaking, six years is a sensible baseline as that’s the window in which many claims can legally be made.

You might also choose a longer period if the work you did carries long-term risks or contracts require it.