Insurance - Advice

[Butters]

Hi,

I'm starting a a new assignment/contract in less than a week and need to sort out insurance for my limited company. My contract notes the following :

"The service provider shall :

ensure the provision of adequate Employer’s Liability Insurance, Public Liability Insurance,
Professional Indemnity Insurance and any other suitable policies of insurance in respect
of the Service Provider and the Staff during an Assignment and shall make a copy of
the policy available to the Company upon request."

In this instance, I read this as "all types of insurance stated are mandatory". So I'm looking at getting EL, PL and PI insurance to start with. Can anyone recommend providers who are competitive and who offer comprehensive cover?

My accountant has sent me a link to an affiliated company Knighstbridge Professional Solutions..

I've still to work through the documentation, T's and C's but they're essentially offering the following cover for £371.00 if paid in a one off payment (which seems low to me).

* Professional Indemnity - £1 million
* Public Liability - £5 million
* Employers' Liability - £10 million
* Personal Accident weekly benefit - up to £500 payable for maximum of 52 weeks
* Personal Accident Death benefit - £100,000
* Directors and Officers Liability - £100,000
* Free retroactive cover as standard

The PI cover seems low at £1m. What's your opinion on the required amount of PI cover?

Interestingly, why do I need Employers Liability cover given I'm the only Employee of my company at present?

Really need to get something in place before I start next week.
Thanks everyone.

Regards
Butters

[malvolio]

Standard answers - QDOS or a discount on Randell Dorling via PCG membership.

ELI because you do have a substitution clause (don't you) and you need ELI to use a subbie (or anyone else) working under your control. No ELI and the judge will deem your RoS a sham. And it only costs fourpence anyway.

[GazCol]

Hi,

I'm starting a a new assignment/contract in less than a week and need to sort out insurance for my limited company. My contract notes the following :

"The service provider shall :

ensure the provision of adequate Employer’s Liability Insurance, Public Liability Insurance,
Professional Indemnity Insurance and any other suitable policies of insurance in respect
of the Service Provider and the Staff during an Assignment and shall make a copy of
the policy available to the Company upon request."

In this instance, I read this as "all types of insurance stated are mandatory". So I'm looking at getting EL, PL and PI insurance to start with. Can anyone recommend providers who are competitive and who offer comprehensive cover?

My accountant has sent me a link to an affiliated company Knighstbridge Professional Solutions..

I've still to work through the documentation, T's and C's but they're essentially offering the following cover for £371.00 if paid in a one off payment (which seems low to me).

* Professional Indemnity - £1 million
* Public Liability - £5 million
* Employers' Liability - £10 million
* Personal Accident weekly benefit - up to £500 payable for maximum of 52 weeks
* Personal Accident Death benefit - £100,000
* Directors and Officers Liability - £100,000
* Free retroactive cover as standard

The PI cover seems low at £1m. What's your opinion on the required amount of PI cover?

Interestingly, why do I need Employers Liability cover given I'm the only Employee of my company at present?

Really need to get something in place before I start next week.
Thanks everyone.

Regards
Butters

I never bother with PI cover that's higher than the cost of the project unless it is stipulated in the contract.

You need EL because as an employee you're a separate legal entity from your company.

I tend to go with AXA or Hiscox, their rates seem to change on a monthly basis though so there's no way of telling who'll be cheaper other than getting a quote - sometimes it's cheaper to get the PL/EL together with one carrier and then the PI with another; rather than buying all 3 from the same insurer.

[northernladuk]

OP, bearing in mind nearly every contract has insurance it would be a fair bet that this has been asked a couple of thousand times so a quick search or a tiny bit of effort to do your research I am sure would have answered your question a lot quicker than that post.

[Contreras]

No ELI and the judge will deem your RoS a sham.

Mal, if you want to keep making that assertion then perhaps you could cite the case law?

You need EL because as an employee you're a separate legal entity from your company.

Wut?

Previous thread on ELI here.

[GazCol]

Mal, if you want to keep making that assertion then perhaps you could cite the case law?



Wut?

Previous thread on ELI here.

One of the most popular misconceptions in relation to Employers’ Liability Insurance is that if an incorporated or
Limited Company solely has Directors and no ‘employees’ that the business has no requirement to buy the cover.

This is not the case, at law, an incorporated company is separate legal entity and as such, the company acts as the Employer of the director(s) and thus creates a duty to purchase Employers’ Liability Insurance.

[TheCyclingProgrammer]

One of the most popular misconceptions in relation to Employers’ Liability Insurance is that if an incorporated or
Limited Company solely has Directors and no ‘employees’ that the business has no requirement to buy the cover.

This is not the case, at law, an incorporated company is separate legal entity and as such, the company acts as the Employer of the director(s) and thus creates a duty to purchase Employers’ Liability Insurance.

It's not a misconception if there is a sole director. No idea where you're getting the above from.

Does the law apply to me?
You need employers’ liability insurance unless you are exempt from the Employers’ Liability (Compulsory Insurance) Act. The following employers are exempt:
■ most public organisations including government departments and agencies, local authorities, police authorities and nationalised industries;
■ health service bodies, including National Health Service trusts, health authorities, primary care trusts and Scottish health boards;
■ some other organisations which are financed through public funds, such as passenger transport executives and magistrates’ courts committees;
■ family businesses, ie if all of your employees are closely related to you (as husband, wife, civil partner, father, mother, grandfather, grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister). However, this exemption does not apply to family businesses which are incorporated as limited companies;
■ companies employing only their owner where that employee also owns 50% or more of the issued share capital in the company.

http://www.hse.gov.uk/Pubns/hse40.pdf

[malvolio]

Mal, if you want to keep making that assertion then perhaps you could cite the case law?

If there were case law, then I'd quote it. I'm going on legal opinion from the likes of Lawspeed and Abbey.

If you want to be pedantic, you need ELI if you have a worker under your control, so you don't need ELI unless you exercise your RoS. But given the cost is sod all, and a tiny percentage of the value of the average contract (as is PI and PLI, come to that, mine is less than a day's charges and I pay for a full policy), it makes sense to have it there full time.

[GazCol]

It's not a misconception if there is a sole director. No idea where you're getting the above from.



http://www.hse.gov.uk/Pubns/hse40.pdf

Apologies, I didn't realise this was updated in 2005.

[TheCyclingProgrammer]

Apologies, I didn't realise this was updated in 2005.

No worries.

I'm guessing however, that making a spouse or partner your company secretary would be enough to make it required. Something I'm currently planning. Time to update my policy...