PLI and whether honesty pays?

james72

Hi,

I'm confused a little.

I want Public Lability Insurance. The market I am in is somewhat specialised. There seems to be only a few places that offer PLI that will suit the business. 

One of the questions is always along the lines of, 'have you or anyone you employ ever been declared bankrupt'

Now I'm a tiny one many band. So really they are just asking about me.

If I'm honest and write 'yes' then either they won't offer me the cover, or more likely they will but it now costs three times as much...... What? That seems unfair. 

My question on honesty is also about if they are even allowed to ask that question?

I'm not sure how long after bankruptcy, but I thought after 4 or 5 years - you no longer have to mention it? Maybe I have that wrong. I thought - after 4 or 5 years there was something that happens. Like the record of it is expunged. 

For me the bankruptcy happened at the end of 2019. Like in November time. So 5 years this November.

If I get asked by someone offering PLI  'have you or anyone you employ ever been declared bankrupt' - if I am passed the magic number of years [4/5?] and I write 'no'. Am I correct as I am beyond the number of years where I need to mention it?

Are they wrong to ask this. As beyond a certain number of years - you should be allowed to live like 'normal'?

I don't want to write 'no' - and basically pay them for PLI that in fact I can never claim on - because they will use the lie ['no'] to invalidate any claim.

I would love any advice. 

Even if it's just to call me a fool. Or just to correct my assumption that after 4 or 5 years I no longer have to mention I was made bankrupt. 

Thanks

fatbelly

If you are discharged from bankruptcy the record drops off the insolvency register after 3 months.

The record drops off your credit file six years after the bankruptcy date

The record is findable on the London Gazette, should you be so inclined.

It's your decision over what/how you declare

DullGreyGuy

james72 said:

Hi,

I'm confused a little.

I want Public Lability Insurance. The market I am in is somewhat specialised. There seems to be only a few places that offer PLI that will suit the business. 

One of the questions is always along the lines of, 'have you or anyone you employ ever been declared bankrupt'

Now I'm a tiny one many band. So really they are just asking about me.

If I'm honest and write 'yes' then either they won't offer me the cover, or more likely they will but it now costs three times as much...... What? That seems unfair. 

My question on honesty is also about if they are even allowed to ask that question?

I'm not sure how long after bankruptcy, but I thought after 4 or 5 years - you no longer have to mention it? Maybe I have that wrong. I thought - after 4 or 5 years there was something that happens. Like the record of it is expunged. 

For me the bankruptcy happened at the end of 2019. Like in November time. So 5 years this November.

If I get asked by someone offering PLI  'have you or anyone you employ ever been declared bankrupt' - if I am passed the magic number of years [4/5?] and I write 'no'. Am I correct as I am beyond the number of years where I need to mention it?

Are they wrong to ask this. As beyond a certain number of years - you should be allowed to live like 'normal'?

I don't want to write 'no' - and basically pay them for PLI that in fact I can never claim on - because they will use the lie ['no'] to invalidate any claim.

I would love any advice. 

Even if it's just to call me a fool. Or just to correct my assumption that after 4 or 5 years I no longer have to mention I was made bankrupt. 

Thanks

There is no equivalent of the Rehabilitation of Offenders Act for bankruptees and so insurers can legally as if you ever have and you legally have to answer the question honestly and accurately. If you dont then they are free to void your insurance and avoid any claims. 

Surprised you are raising this on PL though, would have thought your Home and Car insurance were the more immediate impacts. 

Insurers are free to set whatever rules they want, 5 years is relatively recent in most eyes, whilst you will still have to answer "yes" in 10 years time you may find the impact is less than it is now. 

james72

Thanks

So that clears that up.

I stupidly thought it got wiped clean after six years

I guess anytime they have to pay out - they'll check the gazette just in case....

And I guess [as always] ignorance is no defence. As until today - I genuinely thought after six years [I thought 4 or 5 years] I would be legally allowed to say no to that question. As it had been wiped off my record. 

DullGreyGuy

After 6 years it will drop off your credit file so won't be visible by a simple request to the CRA but there are other ways they can find it as you mention and just because its not there doesn't mean you can not tell the truth on your application forms. 

If you search on this site you'll find other people asking very similar questions so you're not the only one and secondly they may name some of the insurers that ask about a time period. Whilst on here it's more likely to be Home or Motor many insurers do both personal lines and commercial lines. Again it will be different people involved so they may be happy on one side but not on another side but at least it gives you something to check. 

james72

Thanks

There seems to be only a few companies that specialise in PLI for putting on shows.

In fact some of the others - nothing to do with bankruptcy - are so badly priced... and set up... they want you to name how many shows over the next year [impossible] and then charge a ridiculous amount.

The only saving grace is - equity membership - covers actors... so I can just use that and make sure all the actors are in equity and we are covered that way... 

I'd much rather not be in equity.... and just have the company [in my name] have PLI for the shows

luvchocolate

Home  insurance always asks if anyone in the home has ever been bankrupt 
Mine was 12 years ago so I always declare it 
Price gets better each time 

RAS

Do consider what could happen if your PLI insurer discovered your undisclosed bankruptcy. Neither CIFAS markers or Hunter are fun to deal with and they don't have to advise you that they've made the referral.

JadedAngel88

luvchocolate said:

Home  insurance always asks if anyone in the home has ever been bankrupt 
Mine was 12 years ago so I always declare it 
Price gets better each time 

I went bankrupt in 2006. In that time I've been asked 3 times on home insurance. So it's not always. Comparison sites have the question as part of their information you fill in.