What is Run Off Cover?

Incision Indemnity
Surgeons - Medical Professionals -
28th May 2023
2 mins read

What is Run-off Cover? 

Run-off cover in healthcare, is insurance for any claims made against a medical professional or their practice, after the practice has closed or an individual has retired or stopped practicing. 

The typical reason for run off cover is to protect against future legal action being taken, against any work that was carried out whilst individuals were still practising. 

Who needs Run-off cover? 

Run-off cover is typically for those who purchase claims-based indemnity, as opposed to occurrence-based indemnity. Claims-based cover only provides coverage for any claims made whilst the policy period was active, and not after the policy is cancelled. 

Doctors who had purchased a claims-based indemnity cover, in the run-up to the introduction of Clinical Negligence Scheme for GPs (CNSGP) in 2019, were additionally advised that they would need run-off cover, as the CNSCP would not provide this. If you are a GP, it is important to check if this will affect you, to ensure you have sufficient cover in place. 

For medical professionals who have always held occurrence-based indemnity, there is no need for an additional run-off cover. Occurrence based indemnity provides cover for the time when the policy was active. If the claim was made after the policy was cancelled, but related to an incident during the time the policy was active, this will still be covered regardless of when the claim is made. 

Find out more on the differences between Occurrence and Claims Made coverage here, or watch the video below for more:

Take a look at the video below: