Cancelling PI Insurance

[CompoundOverload]

Dunno but I haven't anything about HMRC stopping decent contractor companies that have been run properly from closing so I wouldn't be worried about that personally.


One full tax year. i,e. whatever is left this year and renew for 1 year. It's just a rule of thumb and it you are that wary do it for 2. For a few hundred quid it's a very cheap way to sleep at night. If you are one of them that thinks it's a waste of time and will never be needed then you can cancel it when you feel. If you are one of those that are adamant HMRC will never come after a closed company then also stop paying as soon as you want.

As neither the last two have been proven I'd be happy to shell out 250 quid more to be sure.

Drop in the ocean to sleep at night.

I'm risk averse and would even consider doing it for at least 3/4 years for the sake of 250 each year for that reassurance.

Obviously your tax liability drops each year that goes by, but they also can go back the full 20, but I wouldn't want to do it for that long!

[northernladuk]

Drop in the ocean to sleep at night.

I'm risk averse and would even consider doing it for at least 3/4 years for the sake of 250 each year for that reassurance.

Obviously your tax liability drops each year that goes by, but they also can go back the full 20, but I wouldn't want to do it for that long!

Nothing wrong with that.

[ladymuck]

Sorry, my comment wasn't meant to cause alarm. It was in response to you asking about enquiries 2/3 years down the line and me trying (obviously badly) to say there is a huge burden of proof needed to bring action against the individual when the company has been closed with HMRC's blessing.

[CompoundOverload]

Sorry, my comment wasn't meant to cause alarm. It was in response to you asking about enquiries 2/3 years down the line and me trying (obviously badly) to say there is a huge burden of proof needed to bring action against the individual when the company has been closed with HMRC's blessing.

Understood.

Typically, if you are in the process of closing down, outside of your tax affairs being all paid on time, is there anything else they would scrutinize?

If you don't go down the E. R route, it seems a pretty straight forward process but either route for liquidation you still have to get their stamp of approval. The backlog must be huge!

[zonkkk]

Hello everyone

After 10 years working as a contractor via PSC, I would like to cancel Professional Indemnity cover for my limited company. I've learnt that after the cancellation the Insurer wouldn't honor claims relating to periods when my cover was active. Is this the standard practice? Seems unreasonable to me.

What is your opinion, how long should I keep up the "runoff" payments, given relatively low risk profile? Thank you in advance for your input.

It depends on what your contracts say as well.
My last contract demanded that the company keeps the indemnity cover for at least 3 years after the contract finishes.

[DoctorStrangelove]

Unaccustomed as I am to posting in such hallowed ground, read this about Run Off Cover of PI insurance.

Guide To Run Off Cover | Professionalindemnity.co.uk

Six years is the period many professional bodies require their members to carry run off PI for

[northernladuk]

Unaccustomed as I am to posting in such hallowed ground, read this about Run Off Cover of PI insurance.

Guide To Run Off Cover | Professionalindemnity.co.uk

Nice find... You should post more..


That means more chance you'll slip up at some point and I'll 'Ave ya!! Raawwrrrr.

[zonkkk]

Hello everyone

After 10 years working as a contractor via PSC, I would like to cancel Professional Indemnity cover for my limited company. I've learnt that after the cancellation the Insurer wouldn't honor claims relating to periods when my cover was active. Is this the standard practice? Seems unreasonable to me.

What is your opinion, how long should I keep up the "runoff" payments, given relatively low risk profile? Thank you in advance for your input.

What do your contracts state? Some explicitly request that you keep your insurance for at least 3 years after contract end (the highest I've seen).

[DoctorStrangelove]

Nice find... You should post more..


That means more chance you'll slip up at some point and I'll 'Ave ya!! Raawwrrrr.

I don't post in the professional forums unless I know what I'm posting about.

I've posted that PI stuff several times.

What brought it to my attention was the unfortunate surveyor who missed a bulging wall in a house purchase and thought he was covered by the estate agency's PI.

The agency then went bust, presumably without the runoff thing.

The surveyor got sued and lost, £40k IIRC.

Hence the above.

What do your contracts state? Some explicitly request that you keep your insurance for at least 3 years after contract end (the highest I've seen).

The applicable limitation period in most professional negligence cases is six years from the date of the negligence. ...

If you are considering bringing a negligence claim against a professional, you should always act as swiftly as possible and seek legal advice on the relevant time limits for bringing a claim

One would suppose they know wot they're talking about.

Hence, one would also suppose, the duration of runoff being six (6) years.

[SueEllen]

What do your contracts state? Some explicitly request that you keep your insurance for at least 3 years after contract end (the highest I've seen).

I had one that demanded 6 years. The last one had a 2 year period.