Do I need insurance?

[Highashgrange]

Recently set up a new ltd company for a solar development. We’ve leased the land and get a rent dependent on the amount of electric sold. The land used is owned privately and not in the company. Do I need insurance? There’s two directors who are family members. My current insurers are telling me I need a policy for employers liability, public liability, environmental liability and business interruption. The interruption however does not include the company leasing going bust and is instead for weather related issues such as storm damage.
But I’ve a lease in place which covers none payment if the rent. So why do I need a separate insurance policy for this?

 

[Pieces_of_Eight]

How many employees are there?

Is there public access to the solar site?

 

[Highashgrange]

How many employees are there?

Is there public access to the solar site?

No employees. Two directors. There’s a public footpath on the boundry but the site security fenced with a 8ft high fence and monitored CCTV.

 

[Blank]

Assuming you are coming from legal compliance rather than 'sensible to have'

Employers' Liability (Compulsory Insurance) Act 1969 - A brief guide for employers

This leaflet is aimed at employers. It provides information about employers' liability insurance and who needs to have it.

www.hse.gov.uk

That covers the law on Employers Liability, have a read and see if it applies (usually not for 2 directors but I'd recommend checking) . No legal requirement for the others (that I'm aware of) I'd ask the broker which are legal requirements and the pitfalls of not taking others. My critical illness cover was a PITA until I took cancer and suddenly it was the best money I ever spent and now I have no mortgage, cleared 2 months pre Liz Truss.

 

[Formatted]

Is this right

- Individual A owns the land and rents it to Company B for a nominal fee, Individual A is insured
- Company A (your company) rents the land from individual A and rents the land to company B
- Company B (solar company) rents the land from Company A based on the amount of electricity produced, this company owns the panels and insures the panels and the ground

 

[Bongodog]

Of course you need insurance, you've formed a limited liability company, as the title states your liability is limited to the share investment you have made (I would guess £100 or less) No one is willing to have anything to do with a company where the owners can walk away when the going gets tough with no chance of recompence for any injury

 

[Frank-the-Wool]

The NFUM have some specific policies related to renewable energy projects.
Not sure if there are others that specialise.

 

[Highashgrange]

Of course you need insurance, you've formed a limited liability company, as the title states your liability is limited to the share investment you have made (I would guess £100 or less) No one is willing to have anything to do with a company where the owners can walk away when the going gets tough with no chance of recompence for any injury

Why does anybody need to have anything to do with this company though? It just accepts rent basically. It doesn’t own anything or really trade like a normal business. It has one customer which pays the rent to it and no suppliers.

 

[Highashgrange]

Is this right

- Individual A owns the land and rents it to Company B for a nominal fee, Individual A is insured
- Company A (your company) rents the land from individual A and rents the land to company B
- Company B (solar company) rents the land from Company A based on the amount of electricity produced, this company owns the panels and insures the panels and the ground

Two people own the land privately.
Those two people are directors of a company set up to recieve the rent.
Their ltd company owns nothing but entered into a lease with an energy company.
The ltd company only receives the rent. There’s no other income. It’s assets are cash in the bank.

 

[Formatted]

If the land is insured, and someone else is insuring the panels. What is there for the LTD to insure? The insurance company will want to know what the liability is and if its just a vehicle to receive rent, there is nothing to insure?

 

[Highashgrange]

If the land is insured, and someone else is insuring the panels. What is there for the LTD to insure? The insurance company will want to know what the liability is and if its just a vehicle to receive rent, there is nothing to insure?

This is what I thought but my insurance company say I’m wrong and want to charge me £1200 for a policy

 

[Jasper]

At a recent meeting our broker said whatever you try to save money on just make sure you’ve got good cover for any claims made against you

 

[Havens]

Recently set up a new ltd company for a solar development. We’ve leased the land and get a rent dependent on the amount of electric sold. The land used is owned privately and not in the company. Do I need insurance? There’s two directors who are family members. My current insurers are telling me I need a policy for employers liability, public liability, environmental liability and business interruption. The interruption however does not include the company leasing going bust and is instead for weather related issues such as storm damage.
But I’ve a lease in place which covers none payment if the rent. So why do I need a separate insurance policy for this?

Congrats on setting up the new solar company! Insurance can be a headache, but it sounds like your insurers are trying to cover all bases. Even though your lease covers non-payment, having employer's liability, public liability, and environmental liability is pretty standard and protects you from a bunch of different risks. The business interruption insurance is mainly for things like storm damage, which could still affect your operations.

It might feel like overkill, but it’s better to be safe than sorry. Maybe just double-check with your insurer if you’re unsure, but it sounds like they’re giving you solid advice.