Closing company - do I need my insurances still?

**BolshieBastard** · 17 July 2012, 10:07

Originally posted by ruth11 View Post

I'm closing my company down at the moment and my insurances are all due.

As I'm not working, I realise I don't need the PL\PI etc insurance, but should I continue to be a member of PCG just in case someone comes knocking in 6 months' time? Or is this unlikely? I also have TLC35 and was wondering whether I need to renew this too?

What are your thoughts?

I'd recommend renewing you PI at the very least for another 12 months. Your last client could potentially still pursue you for any faults for a few years.

Until your co is struck off with agreement from HMRC, I'd also renew any other insurance to protect you from their prying eyes.

**Hex** · 17 July 2012, 12:36

You should renew your PI until the company has closed down completely. Up until then it can be sued and it may be possible for a customer to prevent your company closure. I can't see it is any use after the company has been closed.

Legal insurances (e.g. QDOS, PCG) should be kept up for two years after the company has closed. This is to cover the window when HMRC can enquire into the final company tax return. I believe that two years is supposed to be long enough, but personally I am a bit concerned that I would need them longer than this. Probably best check with the supplier.

**ruth11** · 17 July 2012, 15:34

Thanks Both

**malvolio** · 17 July 2012, 15:54

Standard PCG advice is to keep your membership until the end of the year after the tax year in which the company is closed. By then, the chances of an investigation are close to zero.

**ruth11** · 17 July 2012, 15:55

Originally posted by malvolio View Post

Standard PCG advice is to keep your membership until the end of the year after the tax year in which the company is closed. By then, the chances of an investigation are close to zero.

Thanks Mal

**Hex** · 18 July 2012, 09:48

Check with QDOS about the TLC35 too. You don't want to stop paying for this just before needing it!

**ruth11** · 18 July 2012, 10:26

Originally posted by Hex View Post

Check with QDOS about the TLC35 too. You don't want to stop paying for this just before needing it!

I've literally this morning been in contact and it seems they have the same advice. Keep for one year after closure. Thanks

Closing company - do I need my insurances still?