We all make mistakes, we’re all human – but don’t let that one mistake ruin your career, which is potentially what could happen if you operate your business without Professional Indemnity Insurance – also called PI.
Our PI policies help protect professionals from any errors made while doing their jobs, from a simple accounting mistake to constructing and structurally unsound building. We cover everyone from Accountants to Architects and everyone in-between.
When you hold a PI policy you will be protected from claims files by customers following mistakes, however this type of policy only provides cover while you’re an active professional – what happens with a PI claim is made against you once you’ve retired – or have ceased trading?
This is where PI run-off cover becomes invaluable!
Run-off cover will protect you against claims relating to errors allegedly made in the past, and depending on the circumstances and profession, you could be liable for claims resulting from your alleged inadequate professional advice, services, or designs for up to 15 years after you stop trading. Without run-off cover you would be liable for your own legal costs and expenses – is this something you want to be potentially paying out of your retirement pot? Probably not!
Run-off cover is intended to supplement our PI policies, but it is distinct and may operate differently, therefore it’s important to understand how it works in order to protect your business, reputation and future financial stability.
How does run-off cover work?
Run-off cover works on a claims made basis the same as PI insurance. These policies cover claims made during the policy period, regardless of when the alleged incident took place and will cover claims made ONLY during the policy period.
Claims occurring policies will cover incidents that occurred during the policy period regardless of the date of the claim – meaning a claim can be made years after the initial PI cover has finished. This type of cover will cover you once you’ve retired or wound up your business.
Who needs Run-off cover?
We advise anyone who provides any type of professional service that offers advice, makes educated recommendations, develops design solutions, or represents the needs of others, takes out run-off cover. This will provide you with an extra level of protections against potential legal costs and expenses – even when you retire, merge with another firm, or dissolve a partnership.
How long do I need a policy in place for?
As a rule, we recommend an average of 6 years after you cease trading – but many factors need to be considered as every business is different. Some of our policies run up to 15 years so we recommend you call our commercial lines experts to discuss your policy in more detail.
Call us today to discuss your policy needs – 024 7632 6213 or email enquiries@needhaminsurance.co.uk
