Can I have two insurance policies?

[Johnh876]

Hi,

I can't seem to find any info online in relation to this. I am in the process of setting up a Solar Panel installation company that requires a number of accreditations.

For the solar accreditations, we need a PLI policy covering solar panel installation. For the electrical accreditations, we need to have indemnity insurance of £250k and £2m PLI.

Now, separately they come to a reasonable price. When I get a quote for Solar and Electrical combined it doubles in cost due to the indemnity insurance covering both the solar installs and general electrics. It appears that indemnity insurance on solar is quite expensive. As I said we only need indemnity insurance to satisfy the electrical accreditations.

Ultimately my question is can I hold two separate business PLI policies. One for the electrical side and one for the solar side?

Many thanks

 

[WaveJumper]

I would speak to the forums "Frank the Insurance Guy"

https://www.ukbusinessforums.co.uk/members/frank-the-insurance-guy.333592/

 

[Johnh876]

Thank you.

 

[intheTRADE]

Yes you can have two separate insurance policies.

I am presuming the electrical accreditation is with someone like Elecsa or NEIEIC which will be a different body from your solar installation accreditation so its fine

 

[Frank the Insurance guy]

Hi John,

Thanks for contacting me directly on this. For the benefit of other members who may have similar queries I would advise as follows:

There is not law against having more than 1 insurance policy. However, there are implications that need to be considered.

I would always suggest that a single policy is arranged for each particular type of cover, such as Public Liability.

If you have 2 separate policies in place for Public Liability, even for different activities - what happens if there is a claim that could be considered as work under either of the business activities? If there is any grey area you may find that both insurers decline a claim saying that it should be covered by the other insurance policy, leaving you to deal with it yourself!

Some policies also have a void type clause that states that if there is another policy providing similar cover then their policy will not apply in the event of a claim - if this type of clause is in both policies, you have no effective cover at all!

One solution is to create a subsidiary company, which can then have its own Public Liability policy for all business invoiced for that type of work.

Otherwise, you really should be looking at Public Liability cover that would apply to the whole business and both activities.

 

[ImranR]

Hi John.

Can I suggest you take up the services of a good broker (Frank might help) who can help you get cover? I get the impression you are searching online which is why you are splitting the cover. You really need a specialist to look at it who will likely find a decent provider for both sides of the business.

Best wishes

 

[Chris Hanson]

There is no problem with having specific insurance objectives as long as you only claim on one. They do talk to each other and will prosecute if you file multiple claims

 

[intheTRADE]

Agree with the above. Don't get hung up on this.

Take out the separate insurances to get your accreditation's and crack on with your business

Ive got a couple of clients who solar panel installers if you want me to pick their brains about their setup?