insurance company threatening to sue me

dibsy

hello looking for help - very worried


working as a plumber I visited a client who had problems with a shower pump - the previous plumber had installed the wrong pump and had been fitted in the wrong place and it had never worked properly. But they had tiling and bathroom replaced at the same time so didn't want to dismantle. I explained id never have fitted the pump there and that their only option was to retro fit with the correct pump but in the same place (i.e. the incorrect place). I used above spec fittings and it worked well until they had a leak 10 months later causing damage.
I've had a letter from the insurance company stating they intend to sue me. I am registered as a limited company but as a new business I've no insurance ( and yes I know but I just couldn't afford it)
the clients have been through a lot and I have offered to help ( they are/were acquaintances) but I did explain to them about the retro fit and they chose that rather than the extra work to fit it my way - im also kicking myself because this was verbal
my question is if I deny liability and explain that I have no insurance what happens next - the letter seems to state that they fully intend to sue

forgotmyname

As you have no insurance then you need to pay all their costs.

You could not afford insurance, but it seems you could not afford to be
without the insurance also.

You can deny it, but it seems fairly clear you fitted it, and now its leaking. Although its not in the position you would have chosen you carried on and replaced the old pump. You could have said im not touching that and walked away.

agrinnall

I'd say you have had a rather fortunate warning about the perils of not having adequate liability insurance - what would you have done if your work had caused serious injury and you'd been faced with a bill for millions? Hopefully you have realised that it's a false economy and you now have insurance in place.

Zorillo

If you deny liability and say you have no insurance, you will be taken to court, are likely to be found at least partly liable and have a massively inflated bill to pay due to court costs.

If you admit partial liability, and say you have no insurance, the insurance company may be reasonable in coming to an arrangement regarding reimbursing their outlay. (They may not).

However, as you've said "I explained id never have fitted the pump there and that their only option was to retro fit with the correct pump but in the same place (i.e. the incorrect place)" it is far from clear an argument of partial liability would be accepted and you may well be considered wholly liable.

Public liability insurance starts at about £250 or less for a plumber; you can't afford not to have it.

jonesMUFCforever

Why not let them sue you?
If you are a limited company and the work was carried out by the company then let them take you to court - you say the company has no assets so you go into liquidation - the debt goes away you carry on as a sole trader.
Please remember though to take out public liability insurance before doing this.
A good plumber will always find work so unless you are totally rubbish there is no excuse for not taking out insurance - surely you must be loaded from previous jobs etc?

jevoudrais

resign as a director ? companies house will close the company.
the customer will have to sue a company without directors

jevoudrais

dibsy wrote: »

I've had a letter from the insurance company stating they intend to sue me.

Surely they will be suing the legal entity, the limited company that you work for?