Insurance policy in my name or company ?

[rjay]

I am taking out an office insurance policy that covers the building as well as contents. However, the building was purchased in my name whereas the contents were purchased in my limited company's name.

Should the policy be in my name or the companys ?

 

Have a chat with your broker.

You have two sets of 'insurable interest' so you may need two policies: one for the building in your name and one for the contents (plus tenant's liability and other usual risks) in the company's name.

 

[rjay]

Well, I don't have a broker as I'm dealing directly with the insurer ...

 

Well, I don't have a broker as I'm dealing directly with the insurer ...

Errrr have a chat with the insurer then?

 

[rjay]

Insurers will rarely give you the correct answer - only the answer that suits them.

Case in point: when I recently made a claim, they initiallly said I wasn't covered, then that I might be, then they'd "look into it" and finally that I was covered ! Nothing changed, except the interpretation of the policy cover.

Hence, my posting on here to (try to get) an opinion other than theirs.

 

[weightllp]

I am taking out an office insurance policy that covers the building as well as contents. However, the building was purchased in my name whereas the contents were purchased in my limited company's name.

Should the policy be in my name or the companys ?

Neither.

Your set-up should look like this from the start:

'Holding Company' on top

1 -> Operating company (brand or selling, etc)
2 -> Service company (owns all equipment, computers, carpets, chairs, everything!!) - and looks after property, servicing your 'group'.
3 -> Property company. Owns the property.

Separate company owning the Intellectual Property, Inventions, Ideas and Copyrights.

1 to 3 creates a VAT Group. You can 'intercharge' for services. 'Separate company will invoice for 'usage of IP, copyrights, etc). Holding company will invoice for 'management services' once a year.

You will have 3 different insurance policies for each company, but because they are very 'specialised' - the premium will be lower (together) as what you were looking for in the first place.

Another 'perk' - well - you will never go bust. If you think about it. ;-)

If you need help to sort this out, PM me.

 

[rjay]

I think the costs of simply having a second insurance policy would be far lower than the cost of creating and maintaining two extra companies. Accountancy alone would add at least £700 per year.

Overkill for me, but thanks anyway.

 

[WFChris]

There are two legal entities here one being the property owner (You) and the other being the occupier (the limited company).

Assuming it has employees (other than just a single director) the limited company MUST have employers liability and so would usually be insuring the public liability, business equipment it owns as well as things like business interruption and rent payable etc.

In many cases some insurers will allow the limited company to also cover the Buildings and note you as the 'interested party' and therefore enable you to have fewer policies.

Ultimately, long term it would be wiser to insure the property in your own name and maintain a bit of separation between you and the limited company.

 

[TheGuru2010]

Have to agree with Chris on the point above - I would have a chat with a broker rather than deal with a insurer direct.

Most of the direct companies these days simply look at a system rather than actually look at what your requirements are where as a broker may see things that you may not have even thought about.

Jamie

 

[rjay]

Just a follow-up on this, I've been told that a limited company MUST have Employers Liability insurance, even if there is just a sole director with no employees. Is that true because that's not how I read WFChris's post.