Could I set up my own insurance company?

[vit4]

Just musing over what would happen if I won Euromillions and wondering how much insurance would be on my fleet.

Got me wondering, how much money would be needed to set up my own insurance company, and insure myself? In other words, whatever the minimum insurance cover is (£2 million damage?), if I set up "Vit4 Insurance", put that much money in assets for the company, and only insured myself would that be possible? Or would it need to be more than a couple of million/the whole idea's illegal?


I realise that sounds a bit garbled but if anybody can make out what I mean I'd be uber grateful!

[Carfiend]

Pretty sure when this has come up before it is legal but not worth the hassle.

[Chrisw666]

Why would you want to underwrite your own potential losses when there are already companies that will do that for less than it 'could' end up costing you?

Bit of a dim idea really.

[Greg_D]

people like the post office already self insure, i believe that all you need to do is post a bond with the relevant authorities and you are good to go.

someone wil be along in a minute with a correct answer no doubt...

[vit4]

Fair enough; any ideas how much the bond would need to be then? Just wondering how people like Jay Leno/very young sheikhs etc manage insurance on a wide fleet of very exotic metal??

[LuS1fer]

Police self-insure too - can't see anyone giving them a good quote for "social, domestic, pleasure and high speed pursuits to and from work".

[TallPaul]

As Greg said, its not that rare and definitely legal, you do need to place a surety with the relevant authority (I have no idea who that is!) and the amount is suprisingly low. I dont know the exact amount, but I'm pretty sure its well under £100,000!

[zaphod42]

I think it depends. The last number I heard was £1m bond.

It's all bit strange as those that do self insure tend to be organsiations that can't go bankrupt per se. e.g. councils are always ultimately underwritten/bailed out by the govt so the bond is probably more a matter of paperwork.

I'd be interested in how that compares with private companies or ltds (e.g. the Post Office or British Gas, for example)

[Noger]

£500,000 deposit.

[Benbay001]

I also read its £1 mill but hey, that was ages ago.. Thats not for setting up an ins company either, thats for insuring a private fleet

[MarJay]

I read a few years ago that you can 'bond' yourself because Prince William wanted to ride a motorcycle but no one would insure him. I believe he bonded himself for it, but I can't remember the amount of money involved. I recall that it was something like £250,000 but I can't remember if this is right or not.

[Perd Hapley]

Edit: ignore, see post below!

Edited by Perd Hapley on Friday 1st July 15:21

[zaphod42]

MarJay said:

I read a few years ago that you can 'bond' yourself because Prince William wanted to ride a motorcycle but no one would insure him. I believe he bonded himself for it, but I can't remember the amount of money involved. I recall that it was something like £250,000 but I can't remember if this is right or not.

Strange - even if he put his grandparents on the insurance?

[hairyben]

London busses also self insure I believe- if one of their monkeys rams you it'll normally be your own policy/pocket that foots the bill- they just employ solicitors to argue non stop with anyone who tries to claim and many insurance companies won't evan try claiming off them.

[Noger]

vit4 said:

In other words, whatever the minimum insurance cover is (£2 million damage?), if I set up "Vit4 Insurance", put that much money in assets for the company, and only insured myself would that be possible?

Unlimited liability in the EU for Personal Injury.

[Perd Hapley]

Here's the answer: http://www.legislation.gov.uk/ukpga/1991/40/sectio...

Road traffic act says if £500,000 is kept deposited with the Accountant General of the Supreme Court, you can insure yourself.

[Noger]

Yup, but all that means is you don't need insurance.

If you cause an accident and turn that promising young footballer into a tetraplegic, *you* will still be liable for the £10m settlement. Although you may be able to pay by instalments

[Haribo Man]

Police can self insure but some constabularies have cover. I have dealt with the Police a few times on claims. They should be fine self insuring in reality though because they are never at fault, just like bus drivers!

[LooneyTunes]

vit4 said:

Fair enough; any ideas how much the bond would need to be then? Just wondering how people like Jay Leno/very young sheikhs etc manage insurance on a wide fleet of very exotic metal??

With exotic metal, the 3rd party element must be trivial compared to the potential losses OF the metal itself, especially in a mass theft/destruction scenario? There's no way I'd want highly desirable machinery sat there with no cover against loss.

[LukeSi]

vit4 said:

Just musing over what would happen if I won Euromillions and wondering how much insurance would be on my fleet.

Got me wondering, how much money would be needed to set up my own insurance company, and insure myself? In other words, whatever the minimum insurance cover is (£2 million damage?), if I set up "Vit4 Insurance", put that much money in assets for the company, and only insured myself would that be possible? Or would it need to be more than a couple of million/the whole idea's illegal?


I realise that sounds a bit garbled but if anybody can make out what I mean I'd be uber grateful!

well if you do win would you cover me on a 1.6 Eunos Roadster at 17 please?

But I imagine it must be possible.