Run-off cover for UK professional firms — the umbrella guide
Every UK regulated profession requires PI cover to continue after the firm stops trading. This umbrella guide sets out how run-off works across the main regulated professions, the specific rules and periods each regulator imposes, and the practical decisions retiring professionals face.
What run-off cover actually is
Standard PI is written on a claims-made basis — the policy in force when the claim is notified pays, not the policy in force when the work was done. When a firm ceases trading, no active policy is in force. Any claim notified after cessation would be uninsured unless run-off cover has been arranged.
Run-off cover fills this gap. It provides cover for claims arising from work done before cessation, notified during the run-off period. It is typically arranged from the outgoing firm's final insurer, though specialist markets exist for firms unable to secure standard renewal.
Regulator-by-regulator requirements
SRA MTC (solicitors)
Six years run-off from the SRA-qualifying insurer, per the SRA MTC. Non-negotiable regulatory minimum. Extended Policy Period (EPP) and Cessation Period rules apply to firms unable to secure standard renewal.
ARB (architects)
ARB Standard 8 requires adequate run-off cover. Six years is the standard-market default; extended cover for BSA-touching residential work is prudent under BSA 2022 s.135's 30-year tail.
RICS (surveyors)
Six years run-off standard under RICS PII Requirements. Extended cover where practice included high-value valuations or long-tail activity such as environmental / contamination work.
ICAEW (accountants)
Two years minimum under some interpretations; six years standard market practice. Extended cover for scheme-heavy historic work under HMRC challenge windows.
IPReg (trademark and patent attorneys)
Six years standard. Extended cover for long-tail patent portfolio filings which can face challenge decades later.
FCA MIPRU 3 (insurance brokers)
Run-off cover is expected as part of adequate PII arrangements. Length and scope depends on the firm's activity profile.
CILEX
Six years standard. BSA exposure for CILEX conveyancing firms increases the effective tail.
BSB (barristers)
Run-off treatment via the barristers' own PI arrangement (typically BMIF or comparable).
GMC private practice (medical consultants)
Extended run-off typical due to congenital-injury long tail. Lifetime cover common through medical defence organisations.
Where extended run-off (beyond six years) is essential
- Deed-executed contracts — 12-year limitation.
- BSA 2022 s.135 higher-risk-building exposure — up to 30 years.
- Medical / clinical work — congenital-injury lifetime cases.
- Corporate tax and scheme-based work — HMRC challenge windows to 20 years for deliberate behaviour.
- Asylum and immigration casework — client status implications can arise 10+ years later.
- Cross-jurisdiction work — foreign limitation periods may exceed UK standard.
Run-off cover cost
Run-off premium is typically expressed as a multiple of the final annual premium:
- Six years: 250-350% of final annual, paid upfront.
- 12 years: 400-550%.
- Extended (BSA-required, 20+ years): 500-800% or bespoke.
- Lifetime (some medical): 600%+.
Cost is a function of final premium (reflecting practice-mix, claims-history, turnover) and tail length. Firms with clean history and modest practice-mix see the lower end; troubled firms see the higher end.
Timing decisions
When to arrange
Six months before intended cessation is the earliest sensible. Three months at the latest — specialist markets for run-off are narrower than for standard PI, and lead-times matter.
If renewal fails and run-off can't be secured
Emergency mode. Specialist broker engagement immediate. Personal exposure remains for any claim notified in the tail without run-off cover in place.
Merger vs closure
Merger may cover the tail through the acquiring firm's PI. Wording review essential — formal successor-practice arrangements may apply.
Common failure modes
- Not arranging run-off at all — the most common mistake. Personal exposure follows without cover.
- Arranging six years when 12 or longer is needed.
- Not disclosing pre-cessation claims history fully — fair-presentation obligation continues.
- Cancelling PI early before run-off is bound.
- Assuming successor firm covers tail without formal arrangements.