Liquidated Company due to poor trading.. Unable to insure New Business - Help!!

Discussion in 'Insolvency' started by YdoIbother, Feb 5, 2020.

  1. YdoIbother

    YdoIbother UKBF Newcomer Free Member

    7 0
    Hi All,

    I placed my company into voluntary liquidation in Dec 19 due to poor retail trading conditions meant we were unable to pay debts as they fell due, we lost support from key supplier so had no option (on advice from liquidators) to place the company into liquidation. Had run the business for 15 years and was heartbraking to lose it,, it wasnt a flash in the pan and move on to the next business scenario.

    Meanwhile we had been working on another Ltd company in a totally different type of business (1st business was in high street retail, new one is in tourism) , Time come to get insurance in place ready for a few weeks time and lo and behold... No one will quote due to the directors being directors of a previously liquidated company!! Even the .. "we will cover anything" people have taken my details, said reassuring things and then come back with "sorry our panel wont quote"

    Surely i cant be the only person ever to be in this scenario! any reccomendations for insurers to try?
     
    Posted: Feb 5, 2020 By: YdoIbother Member since: Feb 5, 2020
    #1
  2. Porky

    Porky UKBF Regular Full Member

    198 80
    Hi

    I have seen this before. The first time I was surprised because like you I was thinking what’s the problem here, it’s only a bit of office contents PL and EL required but I think the insurers view it as a higher risk. However, insurers were found and the policy premium was loaded 50% as a result.

    Not sure about Travel agents though, is there associated risk under PL if you went into receivership having taken payments and left people stranded abroad or something? Could they claim against your PL policy? Or is it special Travel agents cover you need?

    Either way, I’m fairly confident you will get cover from somewhere but the premium will likely be loaded and they will want full details disclosed.

    You need a good commercial insurance broker that has access to a range of markets including lloyds that can negotiate for you. If you are still drawing blanks PM me and I will dig out a broker I have used in the past that might be able to help

    Good luck
     
    Posted: Feb 6, 2020 By: Porky Member since: Dec 27, 2019
    #2
  3. YdoIbother

    YdoIbother UKBF Newcomer Free Member

    7 0
    Fingers crossed then, sorry I meant new venture is in tourism as it's a seaside gift shop and exhibition space as opposed to high street retail, I suppose it's still retail. But one broker cited insurers concerns around phoenixing
     
    Posted: Feb 6, 2020 By: YdoIbother Member since: Feb 5, 2020
    #3
  4. fisicx

    fisicx It's Major Clanger! Staff Member

    32,710 9,698
    You are starting an even more high risk business. Brokers will look at your trading history and the new venture and decide the risk of failure is too high to give you cover.
     
    Posted: Feb 6, 2020 By: fisicx Member since: Sep 12, 2006
    #4
  5. YdoIbother

    YdoIbother UKBF Newcomer Free Member

    7 0
    Whats the risk to them? Never once claimed in 15 years, just need low value stock and public liability insurance, premiums paid up front.
     
    Posted: Feb 6, 2020 By: YdoIbother Member since: Feb 5, 2020
    #5
  6. fisicx

    fisicx It's Major Clanger! Staff Member

    32,710 9,698
    You see it as low risk, they don’t. Your insolvency puts you in the high risk category.

    My wife in an underwriter and they refuse anyone with a recent insolvency by default.
     
    Posted: Feb 6, 2020 By: fisicx Member since: Sep 12, 2006
    #6
  7. YdoIbother

    YdoIbother UKBF Newcomer Free Member

    7 0
    So i am discovering, however I can not be the only person with a small portfolio of businesses that has had to regrettably liquidate one of them. So any recommendations for good brokers welcome
     
    Posted: Feb 6, 2020 By: YdoIbother Member since: Feb 5, 2020
    #7
  8. Mr D

    Mr D UKBF Legend Free Member

    22,888 2,757
    So if you cannot get insurance do you carry on without it and try again every so often?
     
    Posted: Feb 6, 2020 By: Mr D Member since: Feb 12, 2017
    #8
  9. UrbanRetail

    UrbanRetail UKBF Regular Free Member

    251 76
    Posted: Feb 6, 2020 By: UrbanRetail Member since: Mar 3, 2012
    #9
  10. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,519 446
    Posted: Feb 6, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #10
  11. DontAsk

    DontAsk UKBF Ace Free Member

    1,513 225
    What's the risk? Of going insolvent again? How does that affect public liability risk?
     
    Posted: Feb 6, 2020 By: DontAsk Member since: Jan 7, 2015
    #11