Run-Off Cover
Futureproof Professional Indemnity cover
Ceased trading? Safeguard your business against Professional Indemnity claims related to past work by purchasing Run-Off Cover.
What is a claims-made basis?
Professional Indemnity protects you against claims for negligence (such as making a mistake or giving wrong advice) and for loss of documents, loss of data, breach of intellectual property, and defamation and libel.
This type of cover operates on what is known as a ‘claims-made basis’. This means that the cover will only respond if you have a policy in place when the claim is made against you.
Why consider Run-Off Cover?
If you’re a contractor or freelancer, taking out Run-Off Cover to protect against Professional Indemnity claims made after the work is done is one of the most effective things you can do. If you do ever fall foul of a claim, your Run-Off Cover will kick in to provide you with a safety net.
Most Professional Indemnity claims are not made until at least 6 months after the work has been completed. In some cases, we’ve seen claims come in up to 6 years after a job’s been done.
If you don’t have the right insurance at the time the claim arrives, then you’ve got a problem. If you have ceased trading, then Run-Off Cover could be a good option for you. It will provide Professional Indemnity Insurance, for claims relating to previous work.
What is Run-Off Cover?
Run-Off cover is an extension of Professional Indemnity insurance that protects against past liabilities for a business that has ceased trading. Since Professional Indemnity operates on a ‘claims made’ basis, an active policy is necessary to cover any claims arising from prior work, which can surface months or even years later. Whether you’re retiring, closing, or selling your business, Run-Off Cover ensures you remain protected, offering a reliable safety net for potential claims related to your previous work.
What is Professional Indemnity Insurance?
Professional Indemnity Insurance protects professionals and businesses from claims by clients or third parties for financial losses caused by errors, omissions, negligence, or breaches of professional duty in their services. It covers legal expenses and compensation, helping to safeguard a business’s reputation and financial security in the event of a claim.
Kingsbridge Professional Indemnity policies operate on a ‘claims made’ basis, meaning they provide coverage for claims reported during the active policy period, regardless of when the incident occurred, if it took place after the policy’s retroactive date.
The retroactive date in a Professional Indemnity policy marks the starting point for coverage of incidents. Claims arising from events that occurred before this date are not covered, even if the policy is active at the time the claim is made. Kingsbridge typically provides an ‘Unlimited’ retroactive date, although this may vary depending on the specific type of risk.
Key Features
Stay protected with Run-Off Cover from Kingsbridge.
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Futureproof Professional Indemnity cover
Futureproof Professional Indemnity cover
We offer Run-Off Cover to any Kingsbridge customers who have held a Contractor Insurance policy for over 12 months and whose most recent policy has not expired more than 30 days in the past.
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Extended purchase time
Extended purchase time
Run-Off Cover is available to purchase 45 days prior to and for up to 30 days after your Kingsbridge policy expires. Giving you plenty of time to get your business affairs in order.
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Cover for work completed in the past
Cover for work completed in the past
Professional Indemnity insurance works on a ‘claims made’ basis, meaning you need cover in place when a claim is made against you. With many claims made after the completion of a job, it’s important to keep some protection in place.
Find out more
Fill out the form below and our team will call you to discuss whether you are eligible for Run-Off Cover.
Frequently asked questions
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Who can purchase Run-Off Cover?
If you have ceased trading and currently hold Contractor Insurance with Kingsbridge that has been in place for at least 12 months, then Run-Off Cover could be a good option for you. It will provide you with Professional Indemnity Insurance to cover claims relating to previous work.
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What happens if I hold Run-Off Cover but go back to trading?
If you choose to return to trading with your Limited Company and purchase a Combined Liability Policy (such as our Contractor Insurance) then we can cancel your Run-Off Cover and provide a pro-rate refund.
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Can I purchase Run-Off Cover?
Run-Off Cover is available to Kingsbridge customers who have held one of our Professional Indemnity-led policies for more than 12 months, subject to a review of your claims history. Run-Off Cover is only applicable to when you cease trading – it is not required if you purchase an alternative Professional Indemnity policy elsewhere.
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When can I purchase Run-Off Cover?
Run-Off Cover can be purchased up to 45 days before your current policy expires and up to 30 days after it expires. It is also available at cancellation, provided you have held a Kingsbridge Professional Indemnity-led policy for over 12 months, subject to a claims history review.
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How long does Run-Off Cover last?
Run-Off Cover is provided as an annual policy, which can be renewed subject to a review of your claims history.
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What happens if I hold Run-Off Cover but return to trading?
If you return to trading, please contact us to arrange a new policy and cancel your Run-Off cover.
