Two companies in the same category?

[shazz251]

Hi,

I currently have a company but it has run into some problems. For some reasons, no insurance company is willing to offer me a public liability insurance for that company.
I’m wondering if I can open new company in the same category (doing the same type of business) which I’m hoping may resolve my problems.

 

[Paul Norman]

There is, as far as I am aware, no legal reason why you would not be able to do that.

Whether it would clear the insurance problem would be a question for @Frank the Insurance guy

 

[DontAsk]

So long as you are not trying to avoid VAT registration by keeping both companies' turnover below the threshold.

 

[shazz251]

So long as you are not trying to avoid VAT registration by keeping both companies' turnover below the threshold.

Nope. Just trying to get an insurance as I’m struggling to get one on my current company.

 

[shazz251]

There is, as far as I am aware, no legal reason why you would not be able to do that.

Whether it would clear the insurance problem would be a question for @Frank the Insurance guy[/USER
[/QUOTE]

Thank you. Would be very helpful to get an advise on the insurance as well

 

[Frank the Insurance guy]

Hi @shazz251

What does each company do?

Are they both separate Limited companies, or are you a sole trader with 2 businesses?

Are you currently using a broker?

An Independent Insurance broker will be able to advise you on how best to deal with things. Unless your business is very niche, or extremely high risk, they should have access to a range of insurance providers for you and report back on the best one for you.

Much will depend on what each business does and how it does it.

Feel free to get in touch if you would like to chat through things.

 

[shazz251]

Hi @Frank the Insurance guy

The company I’m operating at the moment is for general building, mainly for maintenance / new builds of residential properties.

The reason I’m looking to open a new company for the same so I could potentially get a PLI, as I have a claim opened against my current company and it seems no insurance company is willing to provide policy. I have contacted numerous brokers and insurance companies but did not hear anything from them once I gave all the details.

So I’m thinking if creating a new company for the same business would resolve this problem?

Ever since our previous policy expired in Nov 2021, we do not have a cover in place for our business and we are losing a lot of contracts because of it. Really stressful situation at the moment.

 

[Frank the Insurance guy]

Hi @shazz251

Creating a new company will not change things - you have a duty to disclose all material facts to insurers.

In short, a material fact is something that may affect the potential insurers view on whether to provide cover and on what terms - withholding information on the claim and setting up a new company to get around things is definitely a no no and is likely to void any new policy!

It may be a case of expectations - if you are looking for an insurance policy for a £2.50, you are not likely to find it!

Key is to give potential insurers the comfort that a similar claim is unlikely to happen again - you will need to demonstrate the actions you have taken.

I will be happy to have an initial conversation with you to discuss the circumstances of the claim and whether insurance is available - if this is of interest, contact me (details below).

The fact that you have been unable to arrange insurance since November suggests that there was a serious issue and this needs to get resolved/rectified. You must be able to demonstrate improvements, if you have any chance of getting insurance in the future.

I have contacted numerous brokers and insurance companies but did not hear anything from them once I gave all the details.

Did they provide some feedback or constructive advice? A decent broker will at least give you some feedback and advice, even if they cannot ultimately help!