How long does liquidation history affect insurance

Mini_doll

my son has been a minor director of a company that has gone into voluntary liquidation twice in the past. He has now started up as a sole trader in a completely different field and is having huge difficulty obtaining public. Liability insurance because of his association with his old employer.

He had no say in the finances of his old company but is still considered a risk.

Can anyone tell me how long this will held against him,

Mistral001

This is an unfortunate situation for the OP's son. He and the OP might think he was only a "minor" director and still really working for an "employer", but a director is a director and in fact he was not working for an employer, but was an employer himself along with the other directors.

InsideInsurance

Many people can have "director" in their job title but are not actually really a director. For example, I work for a Programme Director but he wouldnt be considered a director of the company, doesnt sit on the board or any of the executive management committees etc.

Mistral001

Assuming that the insurance company has done a search and the OP's son's name has been flagged as a director of a company and not a director just in name, the length of disqualification depends on the way the insolvency occurred and is set by the judge as far as I know.

CKhalvashi

As above, it would depend what is on Companies House.

If he was director here, then it would maybe cause problems, whereas if he wasn't (and was only director in job title), then there's less of an issue, and shouldn't be insurance issue at all.

londonTiger

on what grounds with public liability be an issue? frivulous claim by previous company? lots of claims by previous company? or just plain liquidation by itself?

CKhalvashi

londonTiger wrote: »

on what grounds with public liability be an issue? frivulous claim by previous company? lots of claims by previous company? or just plain liquidation by itself?

The main issue may be if there could have been any improper trading.

Whenever I've liquidated a company, it's been a pure formality (assets/staff transferred but cash left, liquidators appointed, notice advertised in Gazette stating all known debts will be paid in full, everything formally stamped about a month after)

If creditors are at all in control, it can go horribly wrong for a variety of reasons.