ARB PII run-off cover for architects: how long and when to extend

~5 min read

Reviewed by Matthew Bartlett, Director · Last reviewed 2026-07-06

When an architect ceases active practice — whether by retirement, sale of the practice, closure, or a career move out of architectural services — the professional indemnity exposure attaching to the work done during active practice does not evaporate. Standard 8 of the ARB Code of Conduct and Practice continues to require "adequate and appropriate" PII cover for the residual claims tail. Unlike the solicitors' six-year MTC run-off, the ICAEW two-year run-off floor, or the RICS six-year Requirements floor, the ARB does not prescribe a fixed run-off period. Adequacy still applies; the market baseline sits at six years; the Building Safety Act 2022 changes the calculus for anyone with material residential exposure. This entry sets out the framework, the placement mechanism, and when six years is not enough.

The ARB position

Standard 8 does not fix a run-off period. It continues to require adequate cover, judged by the same factors that apply during active practice: the nature of the work done, the value of the projects worked on, the claims history, and any specific exposures generated. In practice, the market baseline is six years — the general limitation period for contract claims under section 5 of the Limitation Act 1980 — and most architects' run-off placements are structured on that basis. Six years is a baseline, not a rule; it can be extended, and for many architects it should be.

Placement mechanism

Run-off is placed in one of two ways. The preferred route is extended run-off with the incumbent insurer. The insurer holds the claims history, has priced the risk before, and understands the practice profile. Continuity of insurer avoids any argument about where a notification should be made if a matter surfaces during run-off but relates to work done in the final active year. Apex-arranged run-off placements typically start with a conversation with the incumbent well ahead of the intended cessation date.

The alternative is open-market placement. This happens where the incumbent has left the architects' PI market, priced the run-off punitively, or declined on claims grounds. The architects' run-off market is a subset of the primary market — smaller, with fewer insurers actively writing, and pricing generally higher relative to active premium than the primary market suggests. Practitioners planning cessation should engage a broker six to twelve months ahead so the run-off cost is known before the cessation decision is finalised.

Pricing

Run-off in the architects' market is typically quoted as a single premium payable at inception, calculated as a factor of the last active-year premium. Multipliers vary based on the run-off period, the size and profile of the practice, and the claims history. A clean six-year run-off might sit at 2× to 3× the last active-year premium; a 10-year run-off at 3× to 4×; a 15-year at 4× to 5× or higher. Practices with residential BSA 2022 exposure or with a live claim can face materially higher multipliers.

When six years is not enough

Two circumstances warrant serious consideration of extended run-off beyond the six-year baseline.

The first, and by far the most important, is any material historical involvement in residential dwelling projects. Section 135 of the Building Safety Act 2022 extended the limitation period under section 1 of the Defective Premises Act 1972 to 30 years retrospectively and 15 years prospectively for defective residential dwellings. Architects who signed off on residential designs, acted as contract administrators on residential projects, or provided lead consultant services on residential schemes during the retrospective window may face notifications many years after cessation. Six years is the market baseline; it is not the risk answer. Extended run-off periods of 10, 15, 20 or even 30 years are worth pricing at cessation, and the calculus is different for a practice whose file mix includes material pre-2015 residential work still within the retrospective DPA window.

The second is contract administration exposure. An architect who acted as contract administrator on a substantial project may face payment disputes and defect claims that surface years after practical completion. The typical contract administration exposure runs to 12 years for deeds executed under seal (the general limitation period for actions on a specialty). A six-year run-off leaves a real six-year gap between the run-off period and the potential deed-of-contract limitation window.

What extended run-off actually costs

The cost gap between six and 15 years is often smaller than practitioners expect and much smaller than the exposure it neutralises. A practice with a £3,000 active-year premium and no live claims might see a six-year run-off at £6,000 and a 15-year run-off at £12,000 to £15,000. That is not trivial money for a retiring sole practitioner, but it is proportionate against the retrospective DPA exposure. Practices with heavier residential books, live claims, or higher active premiums scale accordingly.

The role of the practice structure

The run-off obligation attaches differently depending on how the practice was structured. A sole practitioner ceases individually, and the run-off attaches to them personally. A partnership ceases with the dissolution of the partnership, and the run-off attaches to the last partners. An LLP or limited company ceases with dissolution of the entity, and the run-off attaches to the entity — but the individual architects on the ARB Register still carry personal residual exposure under Standard 8. Sole practitioners and small-partnership architects should not assume corporate dissolution ends their personal exposure.

Worked example

Illustrative only. A two-partner residential architectural practice ceases on 31 December 2027. The senior partner is retiring at 68; the junior partner is moving to a larger firm and taking a limited number of ongoing commercial matters but not the residential back-book. Historical work: 20 years of predominantly residential extensions, conversions and small new-builds, with meaningful pre-2015 volume. Broker recommendation given the retrospective DPA extension under BSA 2022 s.135: 15-year run-off rather than the six-year market baseline, with a costed option to extend to 20 years. Single premium payable at inception, priced against the last active-year premium factored for the 15-year period. Documentation review carried out ahead of cessation so historical files are accessible if a claim surfaces in years 6-15 of run-off.