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Thread: Declaring you started a company to insurance company...

  1. #1

    Declaring you started a company to insurance company...

    Mrs set up a company, its in early stages as its not trading.

    Shes gone to a few meetings and company start up/IDA courses etc in her own car.

    At a course, she was advised to inform her Insurance company if she is using her car for "company" related travel.

    Is this the norm? I suppose it makes sense, but whats the outcomes from doing so?
    171 BMW M2

  2. #2
    Quote Originally Posted by edge View Post
    Mrs set up a company, its in early stages as its not trading.

    Shes gone to a few meetings and company start up/IDA courses etc in her own car.

    At a course, she was advised to inform her Insurance company if she is using her car for "company" related travel.

    Is this the norm? I suppose it makes sense, but whats the outcomes from doing so?
    They're not so much saying it's use for "company" as that it's use for "business purposes." This would apply whether it's a start up as a sole trader or a company.
    She should check if her current policy limits her car use to "social, domestic and pleasure" (SDP). If the car is used for commuting to and from work, that's ok. But if it's going to be used travelling on company business, then she needs to extend to definition of "use" under the terms of her policy. If it's to be used for carrying "goods", then it's a whole new ballgame!
    Some policies allow SDP AND "use by the insured IN PERSON in connection with their business or profession." This doesn't cover the carriage of goods.

    Read the "limitations as to use" section of the policy before contacting the insurers......she may already be covered.
    Beware of imitations; there's another lawyer out there calling himself "Lucanlaw!" So the writing on the wall may be a forgery!

  3. #3
    Cheers lucanlaw, ill have a read before we do anything
    171 BMW M2

  4. #4
    Types of use:


    SOCIAL, DOMESTIC AND PLEASURE
    Social, domestic & pleasure use allows you to drive your car privately, for your own personal use.

    CLASS 1
    Social, Domestic and pleasure which includes driving to and from work.

    CLASS 2 – BUSINESS USE
    This covers the vehicle in connection with your job such as driving to different sites from your place of work.

    CLASS 3 – BUSINESS USE
    It will provide cover for transportation of light goods, for example, flower delivery and selling door-to-door sales.

  5. #5
    Quote Originally Posted by edge View Post
    Is this the norm? I suppose it makes sense, but whats the outcomes from doing so?
    No it's not the norm and the outcome is going to be an increase in premium and sleeping better at night.

    Practically everyone will occasionally do something that could be construed as business travel in their car. I'm sure going to any work event would be considered business travel, or going to a conference, or whatever.
    I'm with the resistance

  6. #6
    Anyone getting mileage payments in our company must show class 2 insurance to cover drivers going to
    Customers sites etc.o

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