It’s worth remembering that professional indemnity insurance is just one of few business insurance policies which can be underwritten on a ‘claims-made basis’.
This means that the policy will only offer you cover for claims made and reported within the annual set period of insurance. I.e. If a negligent act or errors were to occur during your period of cover and you inform your insurance company, you could expect to be covered.
However, if you choose to cancel or allow your policy to lapse, the cover would promptly end meaning if a claim was received after the end of the policy but the incident occurred during the policy period you were insured, you would no longer have protection as your policy was cancelled, allowed to end.
This is an important consideration for professionals including contractors and freelancers who move from job to job and project to project. In this instance you may feel it necessary to only purchase a short-term professional indemnity insurance, just to cover your contract. However, as described, if were to be made after this contract has ended and you have cancelled your policy, you will not be covered.