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I am having discussions with an insurer at the moment regarding run-off cover for public liability (PL) insurance. Not for the first time, I have been advised that run-off cover is not required for PL insurance as it is occurrence-based wording. I have a recollection however of hearing Crossley Gates speaking and contradicting this statement. Unfortunately, I cannot recall his reasoning, but I know that it made perfectly good sense at the time. Would appreciate any input from anyone surrounding this one.

Reply: Crossley Gates

PL policies don’t have a run off extension in the PI policy sense. Hence the reaction you received. The need to buy PL cover after a person ceases trading is because the policy responds to property damage during the period of insurance. The risk is the insured may be negligent now but the damage doesn’t occur straight away, rather after the insured has ceased trading. The answer is to renew cover after trading ceases That way there is cover when the damage occurs.

March 2019

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