When businesses are no longer trading we recommend that cover be maintained for a period of six years on a run-off basis as the ‘claims made’ basis of policy cover means that only claims made (and reported to the insurer) during the period of insurance would be indemnified.

Whilst we recommend that a minimum of six years cover is arranged it is important for all policyholders to check to see whether they are contractually obliged to maintain run off cover for a period in excess of six years.