Insurance renewal

[The Wikir Man]

Again, this suggests you have to stay with the same insurance provider. Correct?

No - many will cover you for previous work. I checked with Qdos the first time I took out insurance with them, and checked again when I moved elsewhere.

[blacjac]

As I said, this is what my insurer told me, not what is defacto. (Not qDOS).

I strongly suspect that other insurers are different, but it is something that you need to make sure of before switching providers.

[contractor79]

but they sue your company? what if there's no funds in your company

[norrahe]

Qdos offer retrospective insurance as part of the package for a minimal fee.

[xoggoth]

AFAIK you are covered for claims that arise for the first time during period of insurance, it is not relevant if you had the insurance when you actually did the work. HMRC would probably not pursue a claim after company closure but just not trading is hardly the same thing.

[MarillionFan]

PL Insurance. Have you ever needed it?

Moved to thread

[FarmerPalmer]

but they sue your company? what if there's no funds in your company

then they come after the directors of that company

[Wanderer]

What if the insurer from 5 years ago no longer exists?

By your logic, you would go after the ex-directors of the insurance company. Good luck!!!

Even if they did, why would the entertain an ex client trying to get money out of them 5 years after they stopped being a client. Good luck with that.

So you will take out an insurance policy which will cover risks which occurred IN THE PAST? Good luck getting anyone to underwrite that.

Do you really think if one of your ex clients tried to sue you and the company was closed down then that would be the end of it?

Firstly, my clients have no contract with me, they have a contract with my Limited Company. You have to understand this distinction, the company is an entity in it's own right. There is NO WAY people would go into business with unlimited liability which is why we have the concept of a limited liability company.

Secondly, you can sue a company which has ceased trading but you are wasting your time. You ain't gonna get blood out of a stone and you can't touch the directors either. Do a google for "phoenix company" for numerous examples of where people were owed real money and never got it while the directors walk away blameless. Not only that but the government is sympathetic to people who start a business, take risks and sometimes fail.

The difference is that most contractors don't have any tangible company assets worth speaking of so it's a trivial matter to shutdown one company and start trading with a new one the next day.

Like hell it would, as a company director you are responsible for running the company, and not being insured for the work you are doing could amount to neglegence and leave you personally liable.

Don't believe the FUD spreading from those peddling these worthless insurance policies. The insurance protects THE COMPANY not the directors. If the company stops trading then people can do nothing.

The exception to this may be HMRC who will do whatever they like, but that's a different matter.

[blacjac]

Sorry wanderer you are 100% correct, I have been owned and I bow to your incredible wisdom on a subject that you clearly know nothing about.

[Wanderer]

Sorry wanderer you are 100% correct, I have been owned and I bow to your incredible wisdom on a subject that you clearly know nothing about.

Let's just agree to differ then.