Solicitors' PI Run-Off Cover: The Six-Year Requirement Explained

Reviewed by Apex Insurance Brokers · Last reviewed 2026-08-05

Closing a law firm is not simply a matter of ceasing to trade. Professional negligence claims can surface years after a matter completes, and the client who relied on the advice still needs a route to redress even though the firm no longer exists. That is the problem run-off cover solves — and for solicitors in England and Wales, arranging it correctly is a regulatory obligation, not a commercial choice.

This guide explains what run-off cover is, where the six-year figure comes from, what has changed around long-tail protection beyond six years, and the practical points to get right before you close.

What run-off cover actually is

Run-off cover is professional indemnity insurance (PII) that responds to claims made after a firm has stopped practising, in respect of legal services it provided while it was still active. PII is written on a "claims made" basis, meaning the policy that responds is the one in force when the claim is notified — not the one in force when the work was done. Once a firm closes, there is no live annual policy to notify, so run-off cover steps in to fill that gap for a fixed period.

It matters most in situations such as a sole practitioner retiring, a partnership dissolving, or a firm ceasing after a merger where no successor practice takes on the liabilities. In each case, the former clients — and the firm's principals, whose personal exposure can be significant — need continuing protection.

Where the six-year requirement comes from

Solicitors in England and Wales are regulated by the Solicitors Regulation Authority (SRA). The SRA sets out the compulsory terms that every solicitors' PII policy must meet in its Minimum Terms and Conditions (MTC). Insurers offering PII to SRA-regulated firms must build cover at least as wide as the MTC into their wordings.

Under the MTC, when a firm ceases and there is no successor practice, the firm's insurer is obliged to provide run-off cover for six years from the date the firm stops. This is a core feature of the SRA arrangements: the outgoing insurer cannot simply walk away at the next renewal date. The six-year period reflects the primary limitation period for many contract and negligence claims, giving former clients a realistic window in which to bring a claim.

Two points are commonly misunderstood:

• Run-off is normally automatic. Because the MTC bakes the obligation into your existing PII policy, cover typically triggers when the firm closes rather than being purchased as a fresh, standalone product. You should still confirm the trigger and terms with your broker before closure.
• It cannot be bought retrospectively. If a firm has already ceased without run-off in place, you cannot simply arrange it later. Getting the closure sequence right is essential.

Active PII vs run-off cover at a glance

What about claims after six years? The SIF question

Six years covers most claims, but not all. Some claims — particularly those involving wills, trusts, conveyancing or long-latency advice — can emerge well beyond the six-year window. Historically, protection for that "long tail" was provided by the Solicitors Indemnity Fund (SIF), which offered post-six-year run-off cover once a firm's MTC run-off period ended.

The arrangements for cover beyond six years have changed. The future of SIF and its successor arrangements has been the subject of consultation and revision, and the position has moved more than once. Because this area is genuinely subject to change, we strongly recommend confirming the current published position with the SRA rather than relying on older guidance. If your firm handles the kind of work that generates long-tail claims, this is not a detail to leave to assumption — check where cover sits today before you close.

Talk to Apex about your firm's long-tail exposure →

How run-off is structured and priced

The MTC sets the minimum shape of cover, including a minimum sum insured that depends on the firm's legal structure. Rather than quote figures that change, we suggest checking the current minimum sums insured directly in the SRA's published rules — and considering whether a higher limit than the minimum is appropriate for your past workload. Illustrative options for professional indemnity limits are commonly written at levels such as £1m, £2m or £5m, but the right figure depends on your risk profile.

The run-off premium is typically calculated by reference to the firm's recent annual premium and claims history, and is usually payable when cover triggers. Because run-off is a single fixed-period obligation with no future renewals to spread the cost, it is worth budgeting for well ahead of closure. A broker can help you understand how your insurer calculates it and whether the terms meet the MTC.

Common questions

Is run-off cover compulsory for solicitors?

Yes. Under the SRA's Minimum Terms and Conditions, a firm that ceases without a successor practice must have run-off cover in place, providing at least six years of protection. It is a regulatory requirement, not optional.

Does a successor practice change the position?

Often, yes. Where another firm succeeds to the practice and takes on its liabilities, the successor's PII can pick up the prior work, and separate run-off may not be triggered in the same way. The definitions here are specific, so confirm how your closure is being treated before relying on it.

Can I arrange run-off after my firm has closed?

No. Run-off is triggered by closure and cannot be bought retrospectively. This is why the sequence and timing of ceasing to practise, and confirming cover with your broker beforehand, matter so much.

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This guide is general information, not advice on a specific policy or a substitute for your policy wording.