What Is Run Off Cover & Why Do I Need It?
What is run-off cover?
Dreaming of retiring and running off into the sunset? Unfortunately this does not mean you can escape claim-happy clients.
They may not have complained yet but as any solicitor will tell them, they have six years after the event to do so.
Run-off cover is therefore a Professional Indemnity policy which provides cover for claims made against a business in the years after it has closed and ceased trading.
The annual policy you had when the event took place does not protect you if the claim is first made after it expired. It is the policy you have in force when a claim is first made that has to pay the claim….if you have one of course. That can be many months or years after the event.
Why should I keep Professional Indemnity cover going after I stop working?
No-one wants to be surprised by a claim from their past, especially after having closed business, but in UK law you are actually entitled to make a claim up to six years after the event.
It is not uncommon for a negligence claim to crop up several years after work has been completed for clients so it’s important that cover is maintained to avoid past work becoming excluded.
Legal expenses defending Professional Indemnity claims can be significant, no matter how outlandish the allegations may seem.
Run-off cover is an especially good idea for photographers who are thinking about retirement.
How much cover do I need?
We normally recommend you take out a minimum of 12 months cover, with 6 years being the ideal.
Cover purchased for longer than that isn’t common but we are beginning to see an increase in demand.
To learn more about Professional Indemnity cover click here.
If you have a Professional Indemnity policy with Infocus Insurance, you should notify us immediately of any situation which comes to light that could give rise to a claim.
To discuss this type of cover and other insurance options for photographers, please get in touch with a member of our friendly team today.