Selling Your Business? Don’t Forget Run-Off Cover
Thinking of selling your business, or already in final negotiations? It’s an exciting step, but it also comes with responsibilities that don’t end the day contracts are signed. Even after the sale, your liability exposure doesn’t simply disappear. Claims can arise months or even years later, connected to the work you performed, the products you supplied, or the professional advice you gave.
Without the right protections in place, you could find yourself personally accountable for issues that trace back to when you were running the business. That’s why it’s essential to speak with your insurance broker before you finalise the sale. By planning ahead, you can put the right run-off cover in place, protect your finances, and ensure a smoother transition into the next stage of your life or career.
Why Insurance Still Matters After a Sale
Selling your business doesn’t mean selling away your risks. Even once ownership changes hands, you can still be held responsible for work completed while you were in charge. Claims for professional errors, defective products, or management decisions may arise months or even years after the sale.
Without the right protections in place, these claims could lead to significant financial costs and reputational damage. Insurance provides a safeguard, ensuring your legacy, reputation, and personal finances remain protected long after you’ve stepped away from day-to-day operations. It gives you peace of mind to move forward with confidence, knowing that your past business activities are securely covered.
Covers to Consider When Selling a Business
Depending on your industry, you may need additional protections, such as:
Run-Off Cover – Protects against future claims that arise from past work. See our guide on Run-Off Insurance.
Professional Indemnity Run-Off – Crucial for consultants, advisers, and service providers.
Directors & Officers Run-Off – Covers decisions made while you were still in charge.
Public & Products Liability Extensions – Addresses any historical exposures that may surface later.
Protect Your Legacy
Insurance doesn’t end when your business does. It continues to protect the work you’ve built, the reputation you’ve established, and the years of effort you’ve invested. Selling your business is a milestone, but without the right run-off cover, one unexpected claim could undo much of what you’ve achieved.
By arranging the right protection, you give yourself peace of mind that your legacy is safe, your personal assets are shielded, and your future plans aren’t interrupted by issues from the past. The earlier you start these conversations, the easier it is to avoid costly gaps and ensure a seamless handover.
Speaking to your broker before finalising a sale is the best way to make sure nothing is overlooked. At Grace Insurance, we’ll help you review your risks, explain your options in plain English, and set up the right run-off cover for your unique situation.