The minimum term of the contract is generally 12 months. If your professional indemnity insurance begins during the year, the remaining term until the end of the year is less than 12 months. Therefore, the first term of the newly concluded contract is extended to 1 January of the next year. In the first year, the premium is only calculated proportionally. In the following year, the entire annual fee is charged at the beginning of January. Example: Questionnaire and start of the policy: 16/08/2021 Expiry or extension date of 1 January. The time of the regular premium due date, but also the time of the contract expiry is set here. Since the current year 2021 is only 4 months and 2 weeks and is therefore below the minimum contract term (= 12 months), the contract expires on 1 January 2023. The insurance expires on 1 January 2023, i.e. the first contract term is 16 months and 2 weeks. The first ordinary termination option is with one month’s notice to the end of the second calendar year (1 January 2023). If the contract is not terminated, it is tacitly extended for another year.