Often, yes. Because PI only responds to claims made while a policy is in force, a claim about your past work that arrives after you stop needs a policy to respond to it. Run-off cover does that job. Many contracts, and some professional bodies, require you to keep it for a set number of years after you stop.
Source: https://piinsurance.com.au/run-off-cover/, fetched from the preview https://pi-react-4ee768.pages.dev/run-off-cover/ on 10 Nov 2026; site dated 3 Nov 2026. Preview wording, not yet broker-reviewed. General information, not advice.
Key points
- Run-off covers claims about past work after you stop doing new work.
- Many professional mistakes take years to show.
- Retiring, selling, becoming an employee or a long break can call for it.
What run-off cover is
Run-off is PI for someone who is no longer doing new work. It covers claims made during the run-off period about work you did before you stopped, back to your retroactive date. It does not cover new work. Because there is no new work, it usually costs less than your working premium, and the price often falls each year.
Why claims arrive late
Many professional mistakes take years to show. A building defect, a tax assessment, a business plan that fails. Time limits for contract and negligence claims can be several years, and they can run from when the loss happens rather than when you did the work. Some building claims have longer limits. Your state's rules and your type of work matter, so check with a lawyer.
When you need it
- You retire. Claims about your last few years of work can still come.
- You close or sell the business. Check whether the buyer's policy covers your past work. Often it does not.
- You become an employee. Your employer's PI usually covers work you do for them, not work you did for your own clients before.
- You take a long break. Parental leave or a career break can leave a gap. Run-off can fill it.
Contracts with a run-off period
Many government, construction and consulting contracts require you to keep PI for a set time after the contract ends. Check the clause for the number of years. That obligation does not end when you stop trading. Keep a list of contracts with run-off clauses, and keep your certificates of currency. Reading a PI clause in a contract.
How to set it up
Talk to your broker before your last policy ends. Some insurers sell run-off one year at a time, others offer a multi-year policy paid up front. Make sure it keeps your retroactive date and meets any limit your contracts require.
Common questions
How long should I keep run-off cover?
Long enough to meet any contract or professional body rules. The clause or rule sets the number of years, and a broker can help you match it.
Is run-off cheaper than normal PI?
Usually, because there is no new work. The premium often falls each year of run-off.
Does my new employer's PI cover my old clients?
Usually not. An employer's policy generally covers work you do for that employer.