Run on indemnity Insurance.

[Davisonp]

I have got a job and am closing the limited company which I and my wife set up and are the only directors.
Do I need run on Indemnity Insurance?
Is it worth considering or not practical for someone who did predominantly household repairs?

Thank you for any advice.

 

[telectrix]

your indemnity insurance covers you for giving bad advice. as a ltd. company, you and you wife would have been employees of the company, so the company would have employers liability. you won't nedd that any more.

 

[Davisonp]

Thank you.
That is what I thought, however, the question arises because our company insurance provider is suggesting it, and reading up, there have been cases where employees (installers) have been sued for negligence after the company has closed, but I suspect this is incredibly rare. Has anyone heard of any such case? I have not and I have been viewing the forum for a few years.

 

[Fitzy]

If the insurance works in a similar way like car insurance, the policy that was in place at the time the work was carried out would be liable. So say, if you’ve changed insurers this year and get a claim from some work carried out 18 months ago, your current insurer wouldn’t be liable, the insurer at the time would be.

 

[Davisonp]

If the insurance works in a similar way like car insurance, the policy that was in place at the time the work was carried out would be liable. So say, if you’ve changed insurers this year and get a claim from some work carried out 18 months ago, your current insurer wouldn’t be liable, the insurer at the time would be.

Thank you. That was what I believed, but that is not what they say. They say the date of the work is irrelevant as long as it is the statute of limitation, but when the claim was issued that counts and you must be insured at that time.
It appears not worth the extra for run down insurance unless you have been doing lots of large designs. Bits of domestic repair etc. is not high risk.

 

[123]

Insurance salemen will tell you all sorts of lies to sell you a deal.
When it comes to claiming against them, then the fun starts!

You where insured at the times of the works you did, frankly I wouldn't be taking out an extra policy now.