When deciding to cease operations, whether it is due to retirement or other circumstances, the possibility of future losses and lawsuits being made against previous activities should be kept in mind.
A Professional Indemnity claim may be brought against you many years after the professional service was provided. As these policies are claims made and notified policies, the claim must be made against the insured and reported to the insurer during the policy period in order to trigger the policy.
The importance of run-off cover is reinforced by the statute of limitations for suits being brought up against past actions: a six-year statute of limitations. This allows a party to bring an action against you for a period of six years from the date the loss or damage is sustained.
The option of run-off cover is an effective way to provide protection for yourself and your business in these situations.