Uk (England & Wales) limit on liability... for insurance purposes

[Stickybluetoffee]

Sadly my Limited Company Contracting company is now closing.
Part of this is thinking about my Business Insurance.

My last contract ended in August 2019.

I'm wondering if there's value / need to take any personal policies out in case any former client has any concerns with anything I've done in the past. I've no reason to think this would happen, but think it would be worth protecting myself.
Chatting with the insurance provider they say some industries have a limit on liability on how longer a former client could seek redress for.
Another gave the view that as the liability lay with the company as a limited company and as the company will close then there's no longer any liability and so no insurance is needed.

My contracts generally include the wording "within a reasonable period of time"
Given the nature of the work I did, I would think that any issues would have already been discovered, so I'm feeling fairly confident, but wanted to see if anyone had any experience of this and could offer a concrete reply?

[Lance]

I agree with the limited liability bit.
You cannot be pursued for the debts of a LTD co.

Also. If the company doesn't exist, there is no entity for the client to pursue.

[Snooky]

I agree with the limited liability bit.
You cannot be pursued for the debts of a LTD co.

Also. If the company doesn't exist, there is no entity for the client to pursue.

The exception is if the directors can be shown to have been negligent, which can remove limited liability and make the directors personally liable beyond the total of the company assets. I believe this potential liability can continue beyond the life of the company itself.

[Lance]

The exception is if the directors can be shown to have been negligent, which can remove limited liability and make the directors personally liable beyond the total of the company assets. I believe this potential liability can continue beyond the life of the company itself.

You are mixing things up.

The shareholders cannot be help liable for the debts of the company.
A director is different. Sometimes they will be a shareholder, sometimes not. If they are both there are some cases where the liability can be passed on, but they are rare.

Until you get into fraudulent trading the limit is pretty solid.

[NotAllThere]

The way mine worked was that if there's a a liability while the policy was in place, then the client can claim against the policy. There was a specified time limit. Check your policy.

[Snooky]

You are mixing things up.

The shareholders cannot be help liable for the debts of the company.
A director is different. Sometimes they will be a shareholder, sometimes not. If they are both there are some cases where the liability can be passed on, but they are rare.

Until you get into fraudulent trading the limit is pretty solid.

Where did I mention shareholders? I only mentioned company assets because that's the normal extent of the liability of a limited company.

[Lance]

Where did I mention shareholders? I only mentioned company assets because that's the normal extent of the liability of a limited company.

you didn't. And that demonstrates a misunderstanding of what limited liability is.

It protects the shareholders..... limited liability has no impact on directors per se, other than their fiduciary responsibilities.