Businss Insurance after company closer

[nav1]

Hi,

if i close my company then what happpens to the business insurance policy which i took for a year jutst 3 months back? should i stop paying premium?

[EddieNambulous]

I'm sure they'll be very happy if you continue paying premiums for a non-existent company...very low risk of them having to pay out

The better option might be to contact them, explain the situation and see if you can get a pro-rata refund.

[BolshieBastard]

Depends what the policy says (you did read it before signing, didnt you?) and what the policy is for.

If its something like Prof Indemnity, you'd be better to pay it, quiet possibly for a few years too, just in case. However, even that would depend on what the policy said.

Why not have a look at the policy again or possibly for the first time?

[nav1]

Depends what the policy says (you did read it before signing, didnt you?) and what the policy is for.

If its something like Prof Indemnity, you'd be better to pay it, quiet possibly for a few years too, just in case. However, even that would depend on what the policy said.

Why not have a look at the policy again or possibly for the first time?

you are right, i have to read it now... its for a a year PI and EL policy...

[jamesledingham]

It's important to understand that whilst you are no longer contracting that does not mean that a claim will not be brought against you after you cease work. For liability cover that's fine as it is your insurers at the time of an incident who take the claim even if that goes years back, but for professional indemnity it is known as "claims made" and the insurer on risk when the claim is first notified or brought against you who provides the cover.

If you cancel your policy then you will immediately have no cover for this. As another reply states, you might want to consider run off cover for this aspect which would generally cover a set period of years after you cease work for a one off premium - bottom line speak to your broker and find out your options!

--
James Ledingham
Kingsbridge Professional Solutions
Kingsbridge Professional Solutions
<admin note>link removed - please see terms and conditions of the forum</admin note>