Professional indemnity explained

Does my old firm's PI cover me after I leave?

Reviewed by the Apex broking team · Last reviewed 2026-10-31

Leaver cover is the protection a firm's professional indemnity policy gives former partners and staff for work they did while there. It matters because claims about that work can arrive years after you go.

Part of: Professional indemnity insurance

The short answer

Often yes, as long as your old firm keeps a policy in force that still treats former staff and partners as insured. Most firm professional indemnity policies are written on a claims-made basis and commonly define the insured to include past as well as present partners, directors and employees, for work done on the firm's behalf.

The weak points are what happens if the firm closes, merges or changes insurer, and work you did that was not really the firm's work. In those cases you may need to rely on run-off, a successor practice's policy or cover of your own.

Clients usually sue the firm, which contracted with them. But individuals can be named personally in some cases, so it is worth knowing what protects you after you leave.

How former employees and partners are covered

The key is the policy's definition of insured and the fact that PI responds to claims made during the policy period. Some regulators set out what firm policies must include:

Requirements change, so check the current rules for your profession. Unregulated firms have no minimum wording at all, so the policy itself decides whether leavers are covered.

When the firm closes, merges or is sold

• Closure. A closing firm commonly buys run-off cover. For solicitors, SRA guidance says the insurer on cover at closure must provide run-off for six years from expiry. Claims after that period are a residual risk: SRA guidance notes that the Solicitors Indemnity Fund covered post six-year claims up to 30 September 2022 and that you may need to assess your own risk after that date, which might mean a personal indemnity policy.
• Successor practice. Where another firm takes over the business, its policy may pick up the old firm's liabilities. The rules for solicitors are in successor practice rules under the SRA MTC and successor practice PII.
• Merger. Merged firms usually decide which policy carries the old firms' work; see managing PI through a merger.
• Insolvency. If the firm fails without buying run-off, former staff may find there is no policy in force when a claim is made.

Consultants, locums and contractors

If you worked at a firm as a consultant, locum or contractor rather than an employee, check whether the firm's policy named you. Many firm policies extend to consultants working on the firm's matters, but not all do, and some exclude work done under the individual's own name or company. Our guides on PI for locum professionals and independent vs firm-employed consultants cover the distinction.

If you leave to set up on your own, your new policy will usually cover your new work only. Work you did at the old firm stays with the old firm's policy, so ask before you go what run-off or continuing cover the firm has.

The same applies if you move abroad, change profession or retire. Your later circumstances do not change which policy responds to a claim about old work: it is still the old firm's policy, or its run-off, that you will be relying on. Keep a record of the matters you worked on, the firm's insurer details and any correspondence about cover for leavers, as that will make it much easier to notify a claim correctly if one arrives years later.

Illustrative examples

These examples are illustrative only.

Example 1: the employed surveyor

A surveyor leaves a regulated firm to join another. Four years later a claim names her personally over a valuation she signed. The old firm still trades, and its policy covers former employees, so the claim is handled there.

Example 2: the retired partner

An accountancy partner retires and the firm later closes. A claim arrives five years on. Whether he is protected depends on what run-off the closing firm bought and for how long.

Example 3: the departing consultant

A consultant solicitor leaves a firm that later merges. A former client alleges negligence. Whether the merged firm's policy responds depends on the successor practice arrangements.

Common misunderstandings and what to check

• "My new policy covers my old work." Usually not; it covers you as part of your new business, from its retroactive date. See claims-made vs occurrence.
• "Run-off lasts forever." It usually has a set term, while some negligence claims can be brought up to three years from when the claimant learns of the damage under the Limitation Act 1980, section 14A, if later than six years from accrual.
• "Only the firm can be sued." Clients usually sue the firm, but individuals can be named; see can a client sue me personally and vicarious liability and PI.

Before you leave, ask your old firm for confirmation of how former staff are covered, who its insurer is, and what happens to cover if it closes or merges. Tell the firm about any complaint you know of so it can be notified; see circumstance notification. If the answers are unclear, ask a broker about individual top-up or run-off cover. Accountants and surveyors can compare ICAEW run-off rules and RICS run-off rules.

Apex arranges individual and firm PI, including run-off cover; a broker reads every enquiry.

Sources

• SRA Indemnity Insurance Rules and minimum terms
• SRA guidance: closing down your practice
• RICS Professional indemnity insurance requirements, effective 1 July 2025
• ICAEW PII Regulations, effective 1 September 2024
• Limitation Act 1980, section 14A

Frequently asked

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.