Professional negligence lawyers and claiming against run off cover

In the event that you decide to instruct a professional negligence lawyer to proceed with litigation against a professional such as an accountant, architect or solicitor, you will need to make your intentions known so that the claim can be resolved as soon as possible.However, in some instances the business or firm which you have instructed your professional negligence lawyer to claim against may have retired, ceased trading or gone out of business.Although such a situation may at first appear to scupper your hopes of obtaining suitable redress, it is actually possible to proceed with a claim long after a business or firm has ceased trading. This is because when a professional retires or goes out of business, it still retains liability for its past actions.Fortunately, the world of professional indemnity insurance recognises this fact and protects business with a particular kind of PI insurance called "Run off cover".

Run off cover

Run off cover is not nearly as complex an idea to get to grips with as many make out. In fact, it is simply a professional indemnity policy which provides cover after a business or professional firm has closed. Those who buy run off cover do so on the basis that it will not provide protection against any new work but instead will cover any possible future negligence claims made for work performed in the past.

Does standard PI insurance not cover against claims?

Professional indemnity insurance is underwritten on a "claims made" as opposed to an "occurance' basis". This means that a standard policy can only cover claims made during the policy period. So, if a claim is made after that period has expired, the claim must be made against the run off cover, even if the negligent work was performed during the time of the standard PI cover.

Run off cover and time limits

Generally speaking, there is six-year limitation period for bringing negligence claims, both in tort and breach of contract, so most run-off cover will be valid for a six-year period. However, there are exceptions.

Professional negligence lawyers in London and Brighton

If you have suffered financial loss as a result of the negligence of a professional such as a solicitor, architect, accountant or estate agent, the specialist partners at Healys have the experience and expertise to advance and protect your interests.For advice and enquiries please call our professional negligence lawyers in Brighton and London today.