What is run-off cover for architects?
Run-off cover for architects protects a practice against claims that arise after the PI policy has stopped, whether the firm has closed, retired, or merged. The liability for past work doesn’t end when the practice does, and for architects specifically, that exposure can last far longer than most firms realise. Alexandra Henley, who specialises in professional indemnity insurance for professional services firms at Konsileo, works through run-off planning with practices from day one.
Why does run-off cover for architects last longer than for most professions?
For architects, the Architects Registration Board (ARB) requires a minimum of six years of run-off cover – five years in Scotland – at the same indemnity limit held in the final active year. That’s already longer than many professions. But even the ARB minimum doesn’t fully reflect the legal exposure architects carry.
There are three limitation periods architects need to be aware of:
- Limitation Act 1980: claims can be brought up to 15 years from the date of the act or omission, where issues weren’t immediately apparent
- Building Safety Act – work completed before 28 June 2022: claims under the Defective Premises Act can be brought up to 30 years later
- Building Safety Act – work completed after 28 June 2022: the limitation period is 15 years
For architects involved in residential or mixed-use developments, particularly anything touching fire safety or cladding, this is not a theoretical risk. It’s a real one that needs to be factored into run-off planning from the start.
When should architects start thinking about run-off cover?
Most practices only start thinking about run-off cover for architects when they’re planning to retire, sell, or merge. At that point, it can come as a genuine surprise to learn that premiums may need to be paid annually for six years or more, or that a single upfront six-year policy needs to be funded.
That’s a significant financial commitment to absorb at short notice. The firms that handle it best are the ones who set funds aside early, treating run-off as a known future cost from the moment the practice opens, not an unexpected one at the point of closure.
Has the PI market for architects in run-off improved post-Grenfell?
Yes — the market has softened since Grenfell, with more insurers willing to provide fire safety cover and fewer onerous conditions, such as restrictive inner limits, than in previous years. For practices arranging run-off cover for architects now, that means more choice and more competitive pricing than was available during the hardest part of the market cycle.
But insurance markets are cyclical. Conditions that are favourable today can harden. Practices that delay arranging run-off hoping for better terms take on timing risk they don’t need to.
What should architects check before closing, selling, or merging?
Four things are worth reviewing well in advance:
Whether your buyers will accept your past liability. In a sale or merger, prospective buyers’ PI insurers may not be willing to absorb your historical exposure. If they won’t, you’ll need to arrange run-off cover independently.
Whether you have funds set aside. Annual premiums over six or more years add up. This is a known future cost, plan for it from the start.
What your indemnity limit needs to be. Regulators require that your run-off limit matches the indemnity limit from your final year of trading. Review your last year’s cover before it lapses.
What your historical contracts say. Older contracts may carry higher liability than you remember, particularly on complex or residential projects. Review them before fixing your limit.
Run-off cover for architects is not a one-off admin task at the point of closure. Given the extended limitation periods now in force under the Building Safety Act, it’s a financial commitment that needs to be planned for from the day a practice opens.
Alexandra Henley — Professional Indemnity, Konsileo
8th July 2026
