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  • FIRST POST
    • Trebormint
    • By Trebormint 6th Jul 18, 10:18 PM
    • 42Posts
    • 0Thanks
    Trebormint
    Business Insurance
    • #1
    • 6th Jul 18, 10:18 PM
    Business Insurance 6th Jul 18 at 10:18 PM
    I was wondering if anyone could help.

    I was self employed but have recently been injured, and as a result will not be able to work anymore. I currently have business insurance with Hiscox and they sent me a renewal premium. I decided to speak to someone to advise of my injury and that this insurance was no longer required and they said that if any claims were made against me after my policy was cancelled I would not be covered, but as I suggested I wasn't going to be able to work this didn't seem to be an issue on the surface of things. However they then advised that this related to any work that I had been involved with since I became self employed, so effectively stated that if a claim was bought against me related to work covered during the period I had insurance I wouldn't be covered!!!!

    I effect unless I retain cover with Hiscox effectively for the rest of my life, any potential claims are not covered.

    Whilst it is unlikely that a claim will ever be made against me, this seems wrong as I have paid for insurance for the work I was delivering (IT), and now feel trapped by the insurance policy for life (indemnity insurance).

    Can anyone advise please as I feel that this policy has potentially been misleading or at worst mis sold, and wondered if anyone else had come across this issue and or suffered as a result.

    Cheers
Page 1
    • paddyandstumpy
    • By paddyandstumpy 7th Jul 18, 7:22 AM
    • 1,139 Posts
    • 630 Thanks
    paddyandstumpy
    • #2
    • 7th Jul 18, 7:22 AM
    • #2
    • 7th Jul 18, 7:22 AM
    Why is it misleading or missold?

    Indemnity insurance covers you on a 'claims made' basis, so if you don't have cover when a claim is made then there is simply no policy to respond to.

    Are you a Ltd company?
    • csgohan4
    • By csgohan4 7th Jul 18, 8:36 AM
    • 4,879 Posts
    • 3,113 Thanks
    csgohan4
    • #3
    • 7th Jul 18, 8:36 AM
    • #3
    • 7th Jul 18, 8:36 AM
    So the policy has no run off sadly even for a premium insurer
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • Quentin
    • By Quentin 7th Jul 18, 9:53 AM
    • 37,266 Posts
    • 21,414 Thanks
    Quentin
    • #4
    • 7th Jul 18, 9:53 AM
    • #4
    • 7th Jul 18, 9:53 AM
    Whenever you are not happy with your insurer the route to take for the definitive solution at no cost to you is a formal complaint in line with their complaints procedure.

    Then if you are not happy with the reply or they ignore you for 8 weeks you can escalate to the FOS for their adjudication at no cost to you

    After that if you are still unhappy then you have legal action to consider. But then costs would come into it were you to lose
    • paddyandstumpy
    • By paddyandstumpy 7th Jul 18, 10:36 AM
    • 1,139 Posts
    • 630 Thanks
    paddyandstumpy
    • #5
    • 7th Jul 18, 10:36 AM
    • #5
    • 7th Jul 18, 10:36 AM
    So the policy has no run off sadly even for a premium insurer
    Originally posted by csgohan4
    I thought run off cover was always paid for separately? I've not heard of a policy which will continue to provide exposure after the policy period... if the OP asked for run off cover I'm sure Hiscox would do this.

    Whenever you are not happy with your insurer the route to take for the definitive solution at no cost to you is a formal complaint in line with their complaints procedure.

    Then if you are not happy with the reply or they ignore you for 8 weeks you can escalate to the FOS for their adjudication at no cost to you

    After that if you are still unhappy then you have legal action to consider. But then costs would come into it were you to lose
    Originally posted by Quentin
    just to clarify the FOS are for consumers and small businesses, so not all commercial insurance can be complained about to the FOS. It depends on how the OP is defined.

    My initial question about if the OP is a limited company remains valid, if he is, and doesn't renew PI cover, any recourse from his customers would be against the Ltd and not personally.
    • Quentin
    • By Quentin 7th Jul 18, 11:52 AM
    • 37,266 Posts
    • 21,414 Thanks
    Quentin
    • #6
    • 7th Jul 18, 11:52 AM
    • #6
    • 7th Jul 18, 11:52 AM
    The OP tells us he was " self employed"!
    • Trebormint
    • By Trebormint 7th Jul 18, 1:04 PM
    • 42 Posts
    • 0 Thanks
    Trebormint
    • #7
    • 7th Jul 18, 1:04 PM
    • #7
    • 7th Jul 18, 1:04 PM
    Yes the company was limited.

    From memory there was no indication during the 'sales pitch' phone call made with Hiscox to advise of the processes and policy behind indemnity claims and without that I am assuming the policy was mis-sold. I have asked for a copy of the phone recording for completeness.

    It seems me that unless I continue with run off cover, there is a risk that a claim against me (unlikely) could occur 30 years from now and I won't be covered. For me I guess insurance cover is about being covered for an incident that occurred at the time cover was in place, not retrospectively, just don't feel right and very much stacked in favour of the insurers!!
    • dunstonh
    • By dunstonh 7th Jul 18, 1:29 PM
    • 94,479 Posts
    • 62,419 Thanks
    dunstonh
    • #8
    • 7th Jul 18, 1:29 PM
    • #8
    • 7th Jul 18, 1:29 PM
    It is normal for indemnity insurance to cover you only if you are paying premiums. Once you stop paying, if a claim against you comes in after that event you will not be covered.

    If you change providers periodically, the new provider takes on the liability for all your historic stuff. Not the insurer that was in force the year you did whatever you did.

    When you cease trading and close the limited company, you do not need run off cover. if you were self-employed or a partnership or you intend ot keep the limited company open, then run off cover would be available as a separate policy.

    It seems me that unless I continue with run off cover, there is a risk that a claim against me (unlikely) could occur 30 years from now and I won't be covered.
    its not against you. its against the limited company. if the limited company is closed then the claim cannot be made against you.

    By referring to yourself as self employed (which you were not as a limted company) you may have caused some confusion with the insurer.

    For me I guess insurance cover is about being covered for an incident that occurred at the time cover was in place, not retrospectively, just don't feel right and very much stacked in favour of the insurers!!
    That is an incorrect assumption of how it works.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Quentin
    • By Quentin 7th Jul 18, 2:49 PM
    • 37,266 Posts
    • 21,414 Thanks
    Quentin
    • #9
    • 7th Jul 18, 2:49 PM
    • #9
    • 7th Jul 18, 2:49 PM
    Were you initially self employed then formed a limited company?

    Or working for your limited company from the outset?

    You will see the issue this could cause if that was the scenario
    • Dangermac
    • By Dangermac 8th Jul 18, 11:03 AM
    • 440 Posts
    • 249 Thanks
    Dangermac
    I was wondering if anyone could help.

    I was self employed but have recently been injured, and as a result will not be able to work anymore. I currently have business insurance with Hiscox and they sent me a renewal premium. I decided to speak to someone to advise of my injury and that this insurance was no longer required and they said that if any claims were made against me after my policy was cancelled I would not be covered, but as I suggested I wasn't going to be able to work this didn't seem to be an issue on the surface of things. However they then advised that this related to any work that I had been involved with since I became self employed, so effectively stated that if a claim was bought against me related to work covered during the period I had insurance I wouldn't be covered!!!!

    I effect unless I retain cover with Hiscox effectively for the rest of my life, any potential claims are not covered.

    Whilst it is unlikely that a claim will ever be made against me, this seems wrong as I have paid for insurance for the work I was delivering (IT), and now feel trapped by the insurance policy for life (indemnity insurance).

    Can anyone advise please as I feel that this policy has potentially been misleading or at worst mis sold, and wondered if anyone else had come across this issue and or suffered as a result.

    Cheers
    Originally posted by Trebormint

    You have not been mis-sold. Such a sad state of affairs when the default position for so many people is an accusation of mis-selling. Just human nature in this country now I guess. Always someone else's fault.


    Every insurance policy has a trigger. Something that triggers a claim. In the UK, most policies of the same type/genre, tend to be triggered in a very similar way.


    For example:


    Property Insurance is the day when damage to the property occurs


    Public Liability is the day when damage/injury occurs (may not be the same day/month/year when work is undertaken). Known as 'Losses Occurring' trigger.


    Professional Indemnity is the day that you make the claim again the policy. Known as 'Claims Made' trigger. Could be a long time after the work was undertaken. Many professional indemnity claims are (very) latent (i.e long after the work was undertaken). And potential liability can exist for many years after the business has ceased trading.


    You will need to evaluate the potential risk, whether the business is within a Limited Company (therefore shields you personally from much risk) etc etc


    You need to discuss this with your insurance provider to ascertain the options


    DM
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