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Professional indemnity explained
The limitation period is the time a client has to bring a professional negligence claim against you before the law bars it. It decides how long your exposure lasts after a job ends, and therefore how long you need PI or run-off cover.
Part of: Professional indemnity insurance
In short
In England and Wales a client usually has six years to sue for professional negligence: from the breach for contract claims and from the date of damage for negligence claims. Latent damage can extend this to three years from the client's knowledge, up to a 15-year longstop. Deeds carry 12 years, and Defective Premises Act claims now run for 15 years, or 30 years for claims that accrued before 28 June 2022. Scotland uses a five-year prescriptive period with a 20-year long-stop. Because PI is claims made, plan run-off to match.
In England and Wales a client usually has six years to sue you for professional negligence, but the six years can start later than you expect, and several rules can stretch the window further. Work done under a deed carries a 12-year period. Latent damage that nobody could have spotted can be claimed for up to three years after the client finds out, subject to a 15-year longstop. Claims about defective dwellings can now run for 15 years, or 30 years for older claims, under changes made by the Building Safety Act 2022. Scotland uses a different system called prescription.
For a PI buyer the practical point is simple: your exposure for a piece of work commonly lasts well beyond the date you finish it, and PI is usually written on a claims made basis, so you need cover in place when the claim arrives, not when the work was done.
The main rules are in the Limitation Act 1980. See also our Limitation Act 1980 guide for professionals.
| Rule | Period | When the clock starts |
|---|---|---|
| Breach of contract (s.5) | 6 years | From the date of the breach, which is often when the faulty advice or work was given. |
| Negligence in tort (s.2) | 6 years | From when the claimant suffers damage, which can be later than the breach. |
| Contract made as a deed, a "specialty" (s.8) | 12 years | From the date of the breach. Common for collateral warranties and some appointments. |
| Latent damage in negligence (s.14A) | 3 years from knowledge, if later than 6 years from damage | From the earliest date the claimant had the knowledge needed to bring a claim and the right to do so. |
| Negligence longstop (s.14B) | 15 years | From the last act or omission alleged to be negligent, even if the damage has not yet happened or been discovered. |
| Defective Premises Act 1972 claims (s.4B, inserted by s.135 Building Safety Act 2022) | 15 years; 30 years where the right of action accrued before 28 June 2022 | From when the right of action accrued. |
| Fraud, deliberate concealment or mistake (s.32) | Postponed | Time may not run until the claimant discovered, or could with reasonable diligence have discovered, the fraud, concealment or mistake. |
Sections 14A and 14B apply to actions for damages for negligence, so they are generally relevant to claims framed in tort rather than purely in contract. Claimants commonly plead both. More detail: section 14A latent damage, the section 14B longstop and section 32 deliberate concealment.
Building Safety Act 2022. Section 135 added section 4B to the Limitation Act 1980 from 28 June 2022. Claims under section 1 of the Defective Premises Act 1972 that had already accrued before that date now have 30 years, and future claims 15 years. The change applies retrospectively, so architects, engineers and other designers of dwellings can face claims about work completed decades ago. See the section 135 limitation extension.
Scotland. Scottish law uses prescription under the Prescription and Limitation (Scotland) Act 1973, which extinguishes the obligation itself. The core period for damages is five years, with a 20-year long-stop. The Prescription (Scotland) Act 2018 changed both. From 1 June 2022 the five years do not start until the creditor knew, or could reasonably have known, that loss had occurred, that it was caused by someone's act or omission, and who that person is. Under the commencement regulations, the remaining reforms took effect on 28 February 2025; for damages claims the 20-year long-stop now runs from the act or omission rather than from when the loss occurred, and it can no longer be restarted by a claim or acknowledgement. Firms working in Scotland should check this with a broker; see PI insurance in Scotland.
Northern Ireland has its own limitation legislation, so firms working there should take local advice.
These examples are illustrative and not based on real cases.
Example 1: the pension advice. An adviser gives advice in 2018. The client only realises in 2026 that the recommendation caused a loss. A contract claim may be out of time, but a negligence claim could still be brought within three years of the client's knowledge under s.14A, provided it is within 15 years of the advice.
Example 2: the collateral warranty. A structural engineer signs a collateral warranty as a deed. A funder can bring a contract claim for up to 12 years from the breach, double the period under a simple contract.
Example 3: the retired architect. An architect who designed flats in 2001 retires in 2026. Because of the 30-year period for older Defective Premises Act claims, a claim could in principle arrive long after retirement. Without run-off cover, any defence and damages would fall on the architect.
Because PI usually responds to claims made during the policy period, stopping your policy when you retire, close or sell does not stop claims. Run-off cover protects you against claims made after you stop trading for work done before.
Contracts also often require you to keep PI for 6 or 12 years after completion; see what that clause means.
If a claim does arrive, read what to do after a letter of claim. For your current cover see professional indemnity insurance.
Apex arranges professional indemnity and run-off cover for UK professionals; a broker reads every enquiry.
In England and Wales usually six years, from the breach for contract claims or from the date of damage for negligence claims. That can extend to three years from the client's knowledge for latent damage, subject to a 15-year longstop, and to 12 years for work under a deed. Scotland uses a five-year prescriptive period with a 20-year long-stop.
No. Section 14B of the Limitation Act 1980 applies to actions for damages for negligence, other than personal injury claims. It does not cut down the 12-year period for deeds or the Building Safety Act periods for Defective Premises Act claims, and fraud or deliberate concealment can postpone time under section 32.
It depends on your work, your contracts and your regulator. Six years is a common starting point, but firms that signed deeds or collateral warranties often look at 12 years, and construction professionals face longer exposure under the Building Safety Act 2022. Ask your broker what is available and at what terms before you stop trading.
Yes. Retirement does not stop a limitation period running in the claimant's favour. Claims can be brought against you personally, your former firm or, in some cases, your estate. Run-off cover is designed for this, and some professions require it as a condition of practice.
Yes. The Prescription (Scotland) Act 2018 introduced a discoverability test for the five-year period from 1 June 2022, so it starts when the claimant knew or could reasonably have known of the loss, its cause and who caused it. The remaining reforms, including the change to the 20-year long-stop start date, took effect on 28 February 2025.
Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Get a PI quote Request a callbackApex 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.
