Run off Insurance

As professional indemnity insurance is written on a claims made basis, it is crucial that you maintain insurance cover even after you have ceased to trade or retire. This is referred to as Run off insurance. Due to the type of work that you undertake, it is conceivable that a claim could be made against you many years later. As you can only claim against a current policy of insurance it important that you continue to maintain cover for a certain period of time after you cease to trade or retire. As for how long you should maintain this cover is a question of personal choice and legal advice should be taken on this matter, however RICS members must arrange a minimum of six years cover from the date they ceased trading or retire.