Questions for the insurer when a contractor stops trading
- Reading time
- 3 minutes
- Last reviewed
On this page
Tell the broker or insurer what will actually continue after normal trading stops before asking about policy changes. Describe remaining site visits, stored plant, premises use and enquiries about previous work. “The business is closing” does not give enough detail for a policy-specific answer.
This article prepares that conversation. It does not recommend insurance products, cover limits, cancellation dates or a period of run-off cover. Those decisions need a qualified review of the business, its agreements and actual policies.
Bring the policies and the operating facts together
The Association of British Insurers’ business overview identifies different product areas, including liability, commercial property and commercial motor insurance. Use the business’s actual documents to ask which arrangements are relevant to the proposed changes; do not assume one policy answers every question.
Prepare a broker briefing with:
- The insured business names and current policy references.
- Proposed trading and premises changes, with confirmed and provisional dates distinguished.
- Remaining accepted work, client visits and activities by employees or other providers.
- Plant, vehicles, stock and other property still held, including the relevant locations.
- Known incidents, enquiries or concerns to discuss through the proper notification process.
- The person who will receive later correspondence and control the records.
Share sensitive details through the broker’s or insurer’s appropriate channel. Do not put policy credentials or claims material in the general asset-sale information.
Explain what the last site day leaves behind
Use the project completion record to identify matters that survive physical work. Ask the broker about the effect of those facts on existing cover and any proposed change, including questions about previous work.
The snagging capability review identifies agreed return visits. Describe them accurately; do not call the business inactive while still planning work without explaining that work.
If the yard remains in use, give its actual purpose, occupancy and expected changes. Ask what information the insurer needs before any arrangement is altered. Do not infer an answer from what another contractor was told.
Turn the response into specific actions
Record the question asked, the facts supplied, the response and any conditions or missing information. Confirm who is authorised to instruct a change and who will retain the resulting documents.
If the operating plan changes, return to the relevant contact with that change. A response based on empty premises may not address a later decision to retain stored equipment or permit visits. Ask rather than generalise.
Give UK Auction Group the confirmed practical arrangements relevant to sale and clearance. Keep insurance advice and policy changes with the authorised business contact and broker or insurer. The disposal timetable should use the resulting facts without promising that any particular activity or loss is covered.
Sources
This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.