Insurer run-off · UK

What happens when your PI insurer goes into run-off

Reviewed by Apex Insurance Brokers (FCA FRN 724952) · Published 15 July 2026

When an insurer enters run-off, existing policies continue but new business stops. Understanding what this means for your PI cover and future placements matters.

What 'insurer run-off' means

Insurer stops writing new business but continues to handle existing claims.

Existing policies remain in force until they expire.

Renewal with the same insurer usually isn't possible.

Claims already made or in the pipeline continue to be handled.

Not the same as insolvency — the insurer remains solvent.

Impact on existing cover

Current policy continues to inception date.
Notified claims and circumstances continue to be handled.
Retroactive-date protection continues.
Claim payments continue — funded from insurer's remaining reserves.
But: no renewal possible; new insurer needed.

What firms should do

Notify broker immediately when insurer enters run-off.
Confirm the impact on your specific policy.
Start planning replacement placement 8-12 weeks before expiry.
Retroactive-date discipline critical for continuity.
Document the transition for compliance purposes.
Regulator notification where required.

The FSCS position

FSCS (Financial Services Compensation Scheme) protects certain PI claims where insurer becomes insolvent.

Run-off ≠ insolvency — FSCS doesn't automatically engage.

If insurer moves from run-off to insolvency, FSCS may cover eligible claims.

Eligibility limits and rules apply — particularly relevant for smaller firms.

See our insurer insolvency page.

Replacement placement

New insurer needs comprehensive submission including run-off exposure.
Fair-presentation duty applies fresh.
Retroactive date should extend to the earliest active advice (not just new placement date).
Some claim history may transfer with the risk — disclose fully.
Broker involvement in preserving continuity essential.

Frequently asked

Should I switch insurer immediately?

No — policy is still in force. Plan renewal transition, don't rush.

What if a new claim arises during run-off?

Existing policy responds. Notify insurer promptly — procedures continue.

Does FSCS cover me?

Only if insurer becomes insolvent — not for run-off status alone. Eligibility rules apply.

Can I get run-off cover from another insurer?

Not usually — the run-off insurer handles existing exposure. New insurer takes over new exposure.

How long can an insurer remain in run-off?

Years — run-off can extend decades for long-tail books like PI. Claims may continue to arise for the retroactive period.

Does insurer run-off affect my rating?

It affects the placement dynamics at renewal. Insurers ask about run-off transitions in their questions.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 724952. Registered in England and Wales, company number 07014570.

Offices: QCS, 53 Queen Charlotte Street, Bristol BS1 4HQ · Unit 24, Basepoint Centre, Jubilee Close, Weymouth DT4 7BS