Run-off cover
Run-off cover (extended reporting period) keeps PI insurance active for claims lodged after you retire or cancel your policy, for work done while it was current.
Ask Chalkline about this →Run-off cover (also called an extended reporting period) is a professional indemnity insurance provision that keeps a policy active for claims lodged after the policy has been cancelled or the business has closed, for work carried out while the original policy was in force. Because PI operates on a claims-made basis, a defect claim that surfaces two years after you retire would normally have no cover if your policy has lapsed. Run-off cover bridges that gap.
A run-off period of six years is common for construction design work in Australia, reflecting the time within which statutory warranty claims can still be made. When retiring, closing a business, or switching insurers, builders with PI exposure should confirm the run-off terms before cancelling the existing policy.
Also known as: Extended reporting period.
Category: Insurance
See also: Claims-made policy, Retroactive date.
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Last updated: 2026-05-08. Verified: 2026-05-08. Quarterly review for currency.