Retiring or ceasing to trade does not necessarily mean every insurance policy should be cancelled immediately.

The appropriate approach depends on the type of insurance and the business’s remaining exposures.

Claims-made insurance and run-off #

Particular care is required with claims-made policies such as Professional Indemnity Insurance.

Claims can be made after you stop working in relation to professional services previously provided.

Simply cancelling the policy when you retire can therefore leave past work without ongoing claims-made protection.

Run-off cover can provide continuing claims-made protection for past work after the business stops providing the relevant services.

The appropriate period can depend on:

• Your profession
• Contract requirements
• Regulatory requirements
• The type of work previously performed
• Potential limitation periods
• Insurer availability

Review other policies before cancelling #

Other policies should be reviewed based on whether the exposure still exists.

For example:

• Public Liability may still be required while premises remain occupied or work is being completed
• Business Insurance may still be required while business property remains
• Commercial Motor may need to continue until vehicles are sold or transferred
• Workers Compensation obligations may continue while employees remain engaged
• Management Liability may require consideration of past management exposures

It is preferable to review your insurance before retirement rather than after policies have already been cancelled.

This gives time to consider continuity, run-off arrangements and any remaining exposures.

Contact our team if you are planning to retire or cease trading and would like to review what should happen to your insurance.