Q: How do I make sure that I'm covered against claims that come to light after the sale of a practice is concluded but in respect of work done by the vendor prior to sale? 
 
A: The contract of sale may have something to say about this, and you should ask your solicitor to advise you, however the best security may be found in your PI policy. 
 
If you are the purchaser, you will want to ensure that PI policy is extended to cover the acquisition or merger of businesses practising in the same professional pursuit, and immediately notify your insurer of the acquisition or merger. 
 
If you are the vendor of the business, you should put your PI policy into run-off for (say) 6 years. "Run-off" describes a policy that continues in force but it only covers claims relating to your acts up to the date of sale. 
 
Q: Does the purchaser's PI policy pick up existing claims that have been notified by the vendor? 
 
A: No. All PI policies exclude claims that have been previously notified to an insurer. However we recommend that the purchaser ensure they are kept informed about the progress of any such claims. 
 
Q: Will vendor's PI policy continue to cover the business after the sale? 
 
A: The policy may remain in force until its scheduled expiry date but only in respect of acts prior to sale, but check the wording as each insurer offers different cover. 
 
As noted above, the policy should be put into run-off 
 
See also: The Institute's Comparative analysis of PI insurance policies.