Professional indemnity explained

When your insurer or mutual stops covering your profession: what to do

Reviewed by the Apex broking team · Last reviewed 2026-11-04

An insurer withdrawal is when an insurer, mutual or scheme stops offering renewal or new business terms to a profession, usually while honouring existing policies. It matters because PI is usually claims-made, so a rushed move can leave gaps for past work, regulatory breaches and contract defaults.

Part of: Professional indemnity insurance

In short

If your insurer, mutual or scheme stops covering your profession, your current policy usually runs to expiry and claims made during it stay with that insurer. You then need new cover from the day after expiry, with a retroactive date that reaches back to your past work and no gap. Notify known circumstances to the outgoing insurer before expiry, because new insurers commonly exclude them. Check regulator minimums, such as the SRA extended policy and cessation periods, and contract obligations on limits and terms. Start the market approach months, not weeks, before expiry.

What it means for your cover right now

When an insurer, mutual or scheme stops covering your profession, your current policy usually carries on until its expiry date. Claims made against you, and circumstances you notify, during that policy period normally stay with that insurer. What stops is the offer of renewal terms. You need replacement professional indemnity insurance starting the day after expiry, arranged so that nothing falls between the two.

Two published examples show the range. The Wren, the architects' PI mutual, said in its 24 March 2026 press statement that its board had decided "not to offer renewal terms from 1 July 2026" and would make a solvent exit, meeting its liabilities including claims as they fall due. Its status page says it is now in solvent run-off and still handles claims made during a Wren policy year. In solicitors' PI, trade press reported in July 2025 that one underwriting agency paused new business while it moved to a new facility after a capacity arrangement ended early, with existing customers reported as not affected.

A withdrawal is not the same as insolvency. A solvent run-off keeps paying claims. If an insurer actually fails, different rules apply; see what happens when a PI insurer goes insolvent. Our guides to an insurer exiting the PI market and to an insurer going into run-off cover the mechanics in more depth.

The usual timeline, step by step

Stage	What usually happens	What to do
Announcement	The insurer confirms it will not renew; the existing policy stays in force.	Diarise the expiry date and appoint a broker to approach the market early.
Three to six months before expiry	Other insurers review your proposal form, claims history and work mix.	Prepare a full submission, including risk management and any difficult work types.
Final weeks of the old policy	Last chance to notify circumstances to the outgoing insurer.	Review every complaint, dispute and known problem and notify where the policy allows.
Day after expiry	The new policy should incept with no gap.	Check the retroactive date, limits, exclusions and any regulatory wording.
First year with the new insurer	New claims are made against the new policy, subject to its terms.	Update clients, funders and warranty beneficiaries who need evidence of cover.

The most common pressure point is the gap between announcement and expiry. If cover lapses, a gap in PI cover is hard to fill afterwards, because most insurers will not cover a period that has already passed.

Regulator minimums: SRA, ARB and RICS

Several regulators set minimum PI terms, and a withdrawal does not pause them.

Regulator	Key requirement	If cover cannot be found
SRA (solicitors)	Qualifying insurance with a participating insurer; at least £2 million any one claim, or £3 million for relevant recognised and licensed bodies, broadly those with limited liability.	An extended policy period of up to 30 days, then a cessation period ending no later than 90 days after the extended period began. The firm must notify the SRA and insurer within five business days and cease practice by the end of the cessation period unless it obtains cover.
ARB (architects)	Adequate and appropriate PI under the Architects Code; ARB guidance has set a minimum of £250,000 for each and every claim.	ARB guidance expects run-off cover for six years (five in Scotland) if a practice stops.
RICS (surveyors)	PI with a listed insurer at minimum limits linked to turnover, on approved wording.	RICS requires fully retroactive run-off cover on cessation and points firms without it to a run-off pool.

Sources: the SRA Indemnity Insurance Rules (rules 2.3, 2.4, 4.2 and 8.1), ARB PII guidance (June 2025) and the RICS PII requirements (version 11, from 1 July 2025). Each body updates its rules, so check the current version. For solicitors, our guides to the extended policy and cessation periods and a non-renewed solicitors PI policy go further. For architects and surveyors, see what the Architects Code requires and RICS PII requirements.

Continuity: past work, known circumstances and contracts

Most PI is written on a claims-made basis. A claim first made after the old policy expires usually falls to the new policy, even if the work was done years ago. Three things decide whether it is covered.

Retroactive date. The new policy should usually have no retroactive date restriction, or one that reaches back to your earliest work. A new insurer may offer a later date; see retroactive dates explained.
Known circumstances. New policies commonly exclude matters you knew about before inception. That is why it matters to notify circumstances to the outgoing insurer before expiry; see notifying a circumstance and the prior known circumstances exclusion.
Contract obligations. Appointments and collateral warranties often require PI at a stated limit for a number of years, sometimes "on no less onerous terms", as Trowers & Hamlins noted in the Wren context. Many include a proviso that cover need only be maintained while available at commercially reasonable rates, and a duty to tell the client if it is not. See appointment PI requirements.

Leaving a mutual can raise extra points about calls on open policy years; see leaving a mutual insurer. Former Wren practices have their own hub at former Wren members.

Illustrative examples

These examples are illustrative, not real cases.

Engineering consultancy, scheme closing

A consultancy learns its scheme will not renew in four months. Its broker approaches the market at once. One open complaint about a drainage design is notified to the scheme insurer before expiry, so the new insurer's known circumstances exclusion does not leave it uninsured for that matter.

Law firm short of terms at renewal

A small firm's insurer stops offering terms for its main work type. Quotes arrive late and the firm enters the extended policy period. It notifies the SRA within five business days and binds a qualifying policy before the cessation period would have started.

Architecture practice moving from a mutual

A practice moves to a commercial insurer whose quote includes a fire safety exclusion and a later retroactive date. Its broker negotiates a full retroactive date and checks that the fire safety terms meet its appointment obligations before binding.

Common mistakes

Assuming the old insurer will cover claims made after expiry because the work was done during its policy years.
Leaving the market approach until the final month, when insurers have least time to underwrite.
Not notifying known problems before expiry, then finding the new policy excludes them.
Accepting a later retroactive date without seeing what past work it leaves bare.
Forgetting contract obligations to clients and funders about limits, terms and notice.
Treating a decline elsewhere as the end of the road; see if your business insurance is declined.

What to check with your broker

The exact expiry date and whether any extension or run-off applies.
A list of circumstances to notify before expiry.
The retroactive date, limit basis, excess and key exclusions on each quote.
Regulatory wording: SRA minimum terms, RICS approved wording or ARB guidance.
Appointments, warranties and frameworks that state PI levels or terms.
Who needs new evidence of cover once the policy incepts.

A wider PI programme review is a good moment to check limits and structure too. Apex arranges professional indemnity insurance for UK firms; a broker reads every enquiry.

Sources

Frequently asked

Is my current policy cancelled when my insurer stops covering my profession?

Usually not. A decision not to offer renewal terms normally leaves the current policy running to its expiry date, subject to its terms. Claims made and circumstances notified during that period usually remain with that insurer. What you lose is the chance to renew, so replacement cover needs to start the day after expiry.

Who pays a claim on old work after I move insurer?

On a claims-made policy, a claim first made after your old policy expired usually falls to the new policy in force when the claim is made, even if the work was done years earlier. That depends on the new retroactive date, any known circumstances exclusion and the other policy terms, so check those before you bind.

What happens if a solicitors' firm cannot find PI by renewal?

Under the SRA Indemnity Insurance Rules the firm enters an extended policy period of up to 30 days, then a cessation period ending no later than 90 days after the extended period began. It must notify the SRA and its insurer within five business days and cease practice by the end of the cessation period unless qualifying cover is obtained.

Should I notify circumstances to my old insurer before it stops?

Generally yes, where the policy allows it. New insurers commonly exclude matters you knew about before their policy started. Notifying a genuine circumstance to the outgoing insurer before expiry can keep a later claim on that matter with the old policy, subject to its notification conditions.

Do I need to tell my clients my insurer has changed?

Check your appointments and warranties. Many require PI at a stated limit for a set number of years and some require notice if cover cannot be maintained on the agreed terms. Funders and warranty beneficiaries may also ask for fresh evidence of cover after the new policy starts.

Mid-sized business? Have your programme reviewed

Send us your current schedules or renewal pack and we will review the whole programme and tell you plainly what to keep and what to change. No fee and no obligation. Or call 0117 325 0027.

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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.