Run-off cover is the insurance that continues to respond to claims after a business has stopped trading. For commercial buyers — manufacturers, contractors, property owners, retailers, and any limited company with director-level exposure — the run-off question is not the same as it is for professional services firms. The cover required, the limitation framework, the residual personal liability of directors and partners, and the regulatory expectations differ materially by sector.
This collection covers the eight scenarios we most often advise on in commercial closures, asset sales, mergers, dissolutions and members’ voluntary liquidations.
A run-off placement is a one-time decision with a multi-year exposure. The wording, the limit, the retroactive date and the discovery period all bind on inception and cannot be changed. Most run-off claims arrive in years three to six of the policy period, by which time the original cedant may have left the market and the residual liabilities sit on the directors personally. We work the placement at the front end and document the rationale for the policy structure so that, when a claim arrives, the file tells a coherent story to the insurer’s claims team.
Talk to Apex on 0117 325 0027 before you bind run-off cover — the wrong wording is expensive to fix once the policy incepts.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
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