View Full Version : What insurance?

29th November 2004, 20:06
As part of my income i sell web scripts online through my Ltd Co. I was wondering what sort of insurance is recommended for selling software? something that would basically cover my arse in the unlikely event a user decides a script has messed up their server.

This sales area only pulls in a couple of grand a year for me so does anyone know whether insurance is feasible given the small amounts of money, i havent a clue what the premium costs for this sort of thing would be.

Any decent insurer links appreciated.


30th November 2004, 17:15
It doesn't matter how many you sell.
You only need one of them to cause major disruption to a client who would then rightly expect to sue you for damages.

You'll at least need Public Liability. For a Ltd Company you also must have Employers Liability as a legal requirement.
If you are providing advice you'll also need Professional Indemnity.

30th November 2004, 21:18
Employers liability may well not be required. It depends on whether you have any employees, check at the dti website. [This might just be an upcoming change].

Your terms of business may want to include a liability limitation clause (doesn't mean anybody will accept it though).

30th November 2004, 22:20
You, as an employer and business owner are a separate entity from yourself as an employee. Stange as it may seem. You should have employers insurance and in addition a contract of employment for yourself with your company.

30th November 2004, 22:38
Not exactly.

What you say is largely correct, but officers of a company do not need to be employees of said company. In this case they do not need a contract of employment.

There may be good reason for the officers not to have a contract of employment (NMW cosiderations for one).

I am happy to concede that a company with no employees (i.e. the director and secretary - if individual not corporate - do not have a contract of service) may currently still need employers liability. There is certainly a change in progress to remove the requirement if this has not yet actually happened.

1st December 2004, 18:44
If you are selling, it's product liability you need.

Very very difficult to find for software, I spent ages trawling the net and phoning. NAL but probably because is not really necessary. If you have the usual disclaimers on software, no consequential loss etc, I believe you are protected in UK law. There are other issues such as copyright etc. but I believe most such disputes rarely involve more than a couple of k.

We were obliged by contract to have it because we are registered as suppliers with dept of education. We have insurance for software sales from Icon Insurance, previously Tolson messenger. £50k cover £500 excess cost us £360.