Run-off insurance is a continuation of your Professional Indemnity Insurance, designed to protect you against claims made after you’ve stopped operating or providing services. So if you cancel your policy when you retire or wind down, and a claim comes in later — you won’t be covered. That’s where run-off comes in.

If you give advice, provide a service, or make professional recommendations as part of your business — you could be at risk of being sued if something goes wrong. That’s where Professional Indemnity (PI) Insurance steps in. It can cover legal costs, compensation, breach of duty or negligence, mistakes or errors and misleading conduct. In some sectors, Professional Indemnity (PI) insurance is mandatory by law or industry regulation, or even required in contracts.

Not all insurance policies respond the same way when something goes wrong — especially when it comes to Liability vs Professional Indemnity. Occurrence-based policies (i.e. Public Liability) cover events that happen during the policy period, even if the claim is made years later. Claims-made policies (i.e. Professional Indemnity) cover claims that are made while the policy is active, regardless of when the work was done. Cancelling this type of policy means you're not cover