Run-off arrangements address specified claims made after a professional practice, project or insurance arrangement has ended, subject to the policy. This is especially relevant when the original contract uses a claims-made basis.
The distinction that matters
Closing a business or completing a project does not necessarily end exposure to later allegations. Nor does an expired annual policy automatically accept every claim reported in the future.
What to check
- Claims-made and notification provisions.
- Prior work and retroactive dates.
- The duration and scope of run-off.
- Former entities, partners and professional obligations.
Example to discuss
Before a practice sale or retirement, ask how an allegation about earlier work would be notified and which entity or individual the arrangement insures.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.