QUESTION 5:
I’m selling my business but people say I should keep my policy going for several years. Is that really necessary?

ANSWER:
It could be. The general consensus is that if you sell your business or close it down on retirement you should keep paying for ‘run-off’ indemnity cover for some time afterwards. That’s to protect you in case late claims come in many years after you did the work for the client in question. On this point it is worth saying that good record-keeping is vital if you are to avoid problems and help your insurer defend claims properly. Throwing away documentation is always a mistake, even if it is after a job which seems to have gone well. In many professional sectors there are legal requirements over record-keeping – so you need to follow those as well.