Run-off · PI

PI run-off cover — what drives the cost

Reviewed by Apex Insurance Brokers · Published 15 July 2026

In short: Run-off professional indemnity premiums vary widely by profession, retroactive period and aggregate limit. The drivers are the length of cover required, the limit carried in the final year, the firm’s work mix and claims record, and whether the regulator fixes the period: the SRA requires six years for solicitors, ARB expects six — five in Scotland — for architects, RICS expects six, and ICAEW requires at least two years then reasonable steps for a further four.

The core cost drivers

Retroactive period — longer look-back means more claim exposure and higher cost.
Aggregate limit — higher limits proportionally more expensive.
Sector risk — solicitors, IFAs and architects (BSA 2022) attract higher rates.
Claim history — recent claims materially uplift run-off pricing.
Firm size — larger firms benefit from economies of scale.

Regulatory floors

Solicitors: SRA MTC requires 6 years' run-off post-ceasing.
Architects: ARB Standard 8 requires 'adequate' run-off — typically 6 years, longer for HRB exposure under BSA 2022 s.135.
Accountants: ICAEW Bye-law 61 requires 2 years for member firms.
Surveyors: RICS Rules of Conduct Rule 9 requires 6 years' run-off.
IFAs: FCA requirement varies with permission scope; 3-6 years typical.

How to reduce the total premium

Start planning run-off 12-18 months before ceasing.
Match aggregate limit to actual claim exposure — not annual limit blindly.
Consider staggered aggregate reductions where regulatory permits.
Prepay multi-year run-off for premium discount.
Retire selectively — some cover extensions may be dropped.

What run-off doesn't cover

New advice given post-cessation — run-off is a look-back only.
Additional-insured extensions may not carry into run-off.
Cyber and GDPR often lapse at cessation unless specifically extended.

Published run-off requirements after a firm ceases to practise

How long run-off has to be bought for is, for many professions, not a commercial decision at all.

Regulator / body	Run-off period required	Level of cover	Notable condition
SRA (solicitors)	An additional six years from the end of the policy period	Complying with the Minimum Terms, subject to the run-off limits in the MTC	Triggered by cessation during or on expiry of the policy period
ICAEW (chartered accountants)	At least two years, then all reasonable steps to put compliant cover in place for a further four years	As a minimum, the minimum limits of indemnity in regs 3.2–3.5	Run-off is a mandatory requirement of the regulations
RICS (chartered surveyors)	Six years expected for non-consumer claims; £1m in all for six years for consumer claims	Fully retroactive run-off	Insurers may not charge an additional premium for the consumer run-off element where premium has been paid
ARB (architects)	A minimum of six years, or five years in Scotland	The same level as the last year before cessation	Deeds carry a twelve-year liability period, so ARB warns that six years may not be enough

Sources: SRA Minimum Terms and Conditions clause 5 (sra.org.uk); ICAEW PII Regulations effective 1 September 2024, run-off and cessation of practice (icaew.com); RICS PII requirements 2 July 2025, run-off cover (rics.org); ARB PII Guidance paras 6.2–6.3 (arb.org.uk).

ICAEW requires a ceasing firm to maintain run-off cover for at least two years and then to take all reasonable steps to put compliant run-off in place for a further four years.

Frequently asked

Can I negotiate run-off pricing?

Yes — particularly for larger firms and clean risks. Broker involvement matters.

What if I close mid-year?

Run-off starts from the cessation date. Broker coordination with the primary insurer ensures continuity.

Does my current insurer have to offer run-off?

Not always. Some policies include run-off automatically; some require quotation and separate premium.

Can I switch insurers for run-off?

Difficult — the incumbent insurer usually has better information. Occasionally another insurer offers competitive run-off, but continuity has value.

What about the BSA 2022 impact on architects?

Architects and design firms doing HRB work face 30-year retrospective liability. Run-off pricing reflects this.

How long should run-off actually run?

Meet the regulatory minimum; consider extending if the practice had complex or long-tail exposure.

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