Closing a consultancy does not necessarily end allegations about completed professional services. Run-off discussions focus on earlier work, claim notification and how the existing insurance arrangements respond after active trading stops.

Past work after trading ends

Run-off enquiries address professional services completed before the business stopped actively trading. Policy dates, notifications and insured entities matter. Do not assume a later policy automatically accepts known issues or every historical activity.

The decision that deserves the closest review

Prepare a history of services, policy dates and existing notifications. Ask about the proposed run-off period, insured entities and any changes in terms. Do not assume a new policy retrospectively accepts past services or known circumstances.

Premiums, excesses and usable cover

Request quotations using the same business description, required limits and relevant dates. Put the annual premium, any instalment charges, excesses and important sublimits in one comparison. A cheaper premium can represent a different transfer of risk rather than the same cover at a better price.

Comparison item Question to resolve
History and type of completed services What previous work is accepted?
Existing notifications and policy dates How must claims or circumstances be notified?
Proposed run-off duration and insured entities Are all former trading entities included?

Request the proposed wording and schedule, not just a price or certificate. Mark any difference that affects a real activity before deciding whether the premium saving is worthwhile.

A hypothetical example

A consultant plans retirement after completing a multi-year project. It discusses past-work protection before cancelling its active policy and keeps records of appointments, deliverables and previous insurance.

Prepare an accurate insurance enquiry

Give each adviser a consistent description of the activities being insured. Include important contracts, changes since the previous enquiry and matters the insurer asks you to disclose. Do not guess answers merely to obtain a faster or cheaper quote; ask for clarification when the proposal wording is unclear.

Plan closure using the history of professional work

Compile completed projects, trading names, policy documents and relevant notifications before winding down the consultancy. Identify ongoing duties and where records will remain accessible. An adviser can then discuss the past work and continuity questions using evidence rather than an assumed closure date.

Compare proposed run-off arrangements for their scope, period, notification process and renewal expectations. Ask what the owner must do if an allegation arrives after the business has stopped trading. Keep the practical contact and record-retention plan available to whoever will handle matters following closure.

Include overseas work or sales in the UK business’s enquiry and confirm the accepted territories and jurisdictions.

A mistake to avoid

Cancelling cover first and investigating protection for earlier work only after a complaint arrives.

Check what happens after the policy starts

Ask who to contact when activities change or a potential claim arises. Understand the notification and consent process before arranging repairs, appointing specialists or settling a complaint. At renewal, compare the new documents with the accepted business description; continuity of a familiar brand does not prove continuity of every term.

Questions before choosing

Is there one universal run-off period?

Relevant professional rules, exposure and available terms differ; establish the requirements and options for the particular practice.

Does closing the business end the relevance of past advice?

Past services can still be the subject of allegations. Discuss the applicable policy wording and run-off options before ending the active arrangement or losing access to records.

Sources and further reading

Research date: 6 October 2026. Refer to the current linked guidance and written provider or adviser terms when making a decision.