It has come to Lloyd's attention that certain online businesses purporting to offer "wealth strategy" schemes or UK tax advice have been advertising that individuals who join the schemes will be protected, indemnified or guaranteed by Lloyd's Professional Indemnity insurance.
The schemes are often described as some form of "PAYE umbrella" or "trust" programme for individuals described as "contractors." Lloyd's understands that these online businesses are not, themselves, providing tax or other "wealth" advice, but are "Introducers" for firms that devise and run the schemes. Introducers that have alleged the existence of Lloyd's insurance in their promotional material include Breeze Wealth, Bright Streams Tax and Asset Planning, Tandem Strategies, The Tax Experts, Gladius Consulting, Contractor Payroll Systems and Lower Your Tax Burden. Lloyd's understands that these scheme Introducers may have been alleging the existence of Lloyd's insurance in marketing materials for a number of years. For the avoidance of any doubt, individuals or "contractors" who have signed onto schemes with these or possibly similar businesses are advised that such individuals or contractors are not insured by Lloyd's Underwriters in any way and never have been, notwithstanding any representations that may have been made in the past.
NOTE that this consumer alert does not relate to tax advice companies (including accountants and lawyers) who may state that they maintain Professional Indemnity coverage at Lloyd's. This alert is solely with respect to businesses that advertise Lloyd's Professional Indemnity cover extends to members of the public who join a scheme.
Should you wish to raise any queries regarding the businesses named above--or if you become aware of other similar businesses that are asserting that Lloyd's insurance is available to those who join their schemes--please contact Lloyd's at email@example.com.