Personal indemnity insurance after death

choffer74

My father, who was 88, recently passed away and i am the sole executor of the estate.

He was a self-employed accountant who had been slowly winding down his clients over the last few years and stopped practising in 2023 (although i think he still did a couple of very small jobs in 2024). 

I believe we still need to have PI insurance for at least 6 years after he stopped practising in case any of his clients raise any issues. How do we go about funding this out of the estate? i know the renewal cost this year, but i wont know the costs from years 2-6. 

Any advice appreciated  

DullGreyGuy

The renewal quote would be on the basis of continued business, what you need is a run off policy which covers the tail liability after someone has ceased trading. 

Unfortunately generally it's only the current insurer that is likely to be willing to offer it, very few insurers want to take on a new customer on a run off basis. Some insurers will charge a small annual premium for an annual policy, some insurer will effectively do a single X year policy that covers the full tail in one hit. 

My insurer does run off on an annual basis, my PI dropped from £650/year to c£75 when I didnt need PI for active work for a year.

Marcon

choffer74 said:

My father, who was 88, recently passed away and i am the sole executor of the estate.

He was a self-employed accountant who had been slowly winding down his clients over the last few years and stopped practising in 2023 (although i think he still did a couple of very small jobs in 2024). 

I believe we still need to have PI insurance for at least 6 years after he stopped practising in case any of his clients raise any issues. How do we go about funding this out of the estate? i know the renewal cost this year, but i wont know the costs from years 2-6. 

Any advice appreciated  

You buy run-off cover for the whole 6 years and pay one premium at the time the cover starts. You need to get in touch with his PI insurers as a matter of urgency - it is highly unlikely any other firm would be willing to provide cover.