What is run off cover and do I need it?

PI runoff cover is advisable where you cease trading, or where you sell the business, that you retain the liabilities. Any PI policy is set up on a claims made basis, meaning that a policy needs to be in place at the points that a claim is submitted.

We therefore advise you to review your previous liabilities, and the limitations attached to this, to consider whether a PI runoff policy is appropriate for you. Unlike other professions, this is not mandatory, although that does not lessen its importance. It will be your current provider that will provide you with the runoff cover, and the premium is likely to match your current year’s premium.

Depending then on market conditions and whether any claims are made, this may reduce in subsequent years. But it is likely to be reassessed every year, as opposed to being able to take out a policy which covers you for a number of years.