Towergate are nearly £1bn in debt. Here's the blurb from one of the 'High Street' magazines........
20.11.14
Towergate Insurance Difficulty May Spell Trouble for Photographers
Following the announcement of net debts of £977.5m, issues of cash flow, a downgraded rating, and possible sale of the company Towergate, Professional Photographer advises photographers to keep an eye on their insurance
Towergate, who specialise in personal and business insurance, including Photography Equipment, Business and Liability Insurance, are under increasing financial strain with the outlook appearing bleak. But what happens when your insurance firm goes bust? Are you 'insured' for such a thing?
In the UK, the Financial Services Compensation Scheme (FSCS) is in place to refund on behalf of financial intuitions who have hit difficulty, though the payouts vary from case to case. If you're insured with Towergate, the best advice is to sit tight and wait for official announcements so that the FSCS will have more specific instructions for you, but chances are, your premium or payments may be refunded, depending on the extent of your cover.
The official line right now is to do your research and keep a look out for other business insurance policies so if things do go belly up, (there may be hope yet!) you won't be left in limbo with no insurance leaving yourself wide open for financial disaster. Be sure though to hold off signing any dotted lines just yet, you don't want to be paying hefty fees to get out of a policy that is still live. If Towergate do find a new buyer, their debts and assets can be successfully passed on.