ASE Insurance Agency (UK) Limited
Claims can be made against you for many years after you stop practicing. In some cases your liability could end after 6 years, however, it is possible that you could be liable for up to 15 years.
The nature of Professional Indemnity Insurance means that cover is provided on a claims made basis, so in order for cover to be provided insurance must be held when a claim is made, rather than when an incident occurred.
This why it is important that you ensure that you have in place adequate “run-off” cover when you cease to practice, whether because of retirement or the closure of a business, to cover work previously undertaken.
It is recommended that you acquire a minimum of six years` worth of run-off cover and continue to monitor any risk you have of a claim being made against you after this time. This cover should be held at the same Limit of Indemnity amount as its highest level in the three years prior to the cessation of practice.
Liability can even continue after death so professionals should ensure that their executors are aware of the risk and continue cover for at least six years after the date that the last professional work was undertaken.
It is standard market practice for cover to be arranged by firms rather than by individual practitioners, but ex-employees and past principals should not take this for granted, particularly in the present economic times when firms are becoming insolvent or may be reducing cover to save cost, It is particularly important that owners of firms speak to us early if they are considering closing or selling their practice as it is often easier to ensure that effective run-off cover is put in place while the firm is still practicing.
ASE Insurance Agency (UK) Limited is authorised and regulated by the UK's Financial Conduct Authority (FCA).
ASE Insurance Agency (UK) Limited FCA register number is 300595. You can check this on the Financial Services
Register by visiting the FCA's website www.fsa.gov.uk/register/home/do, or by contacting the FCA on 0800 111 6768
ASE Insurance Agency (UK) Limited`s Registered address is: 39a Welbeck Street, London. W1G 8DH .
Registered No. 3276621.
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