Group Company Trading Insurance

[M1AGM]

Situation:

2 trading ltd businesses both wholly owned by group ltd. Both trading businesses do the same thing in the same sector.

Wanted to have a business insurance policy that was held at group ltd but applied to the various entities below (with specific cover terms per company) group.

The upside to doing this was a) cost savings, b) ability to add in more entities at a later date, and c) less admin.

After going through all the paperwork I have just been told by the broker that this is not possible and the policy would not work because there can only be one ltd on the policy.

Has anyone else done a group policy successfully? Seems a bit mad that it cannot be done.

[MrBen.911]

It's very common for an insurance policy to be issued for a Group company to include all subsidiary companies. If the businesses are quite small, it's likely a computer says no issue - try another.

[StevieBee]

Going back a few years (up to 2019). The company that I was part of certainly had insurance like this. We were part of a group of five ltd companies. One insurance policy to cover the group and companies within it. Group consisted of a Graphic Design agency, Ad Agency, Marcomms Agency, Web Design and Printing Company. IIRC the printing company was the anomaly on account of the turnover and nature of work compared to the others.

I wasn't privy the details of the arrangement but we certainly had a collective group policy in place.

[M1AGM]

Thanks guys. My hunch was that the broker is bullstting me and doesn't understand the requirement, or cannot provide the requirement.