Tenet has launch a permanent run-off cover policy, which it believes is the first commercially-available product of its kind.

Aimed primarily at advisers planning to retire or sell their business, Tenet claims its new solution offers “significant savings and a substantial reduction in risk” when compared to annually-renewable options.

From October, advisers who leave the network will be able to pay a lump sum premium in return for guaranteed indefinite cover.

“Based on the average cost of an annual renewal, it is available for the equivalent of just two years’ premiums,” said Keith Richards, Tenet’s group distribution and development director.

“That makes it an eminently affordable alternative to renewing every 12 months and will provide complete peace-of-mind for the future, given that advisers are not protected by a longstop afforded to other professions.

“It also means that those seeking a buyer for their business can calculate the total cost of cover up-front and build it in to the overall package.”

He added: “The key objective is to help reduce the unfair risk that exiting advisers have to shoulder, especially into retirement.”