Professional Indemnity Insurance - but do I need Public Liability too?

**Jessica@WhiteFieldTax** · 3 March 2013, 12:02

It's probably not necessary, unless agent / client insists on it.

Normally Professional Imdemnity is standalone, and other insurances are bundled together - Employers Liablity, Public Liability, business contents etc - business all risks.

If you have no employees other than yourself, employers liability isn't compulsory, and the reality is that if someone at your client tripped over a cable or your bag at your workstation, they are likely to focus attention in the client as premises owner. To that end unless there is anything inherently risky in what you do, you should be fine with just PI.

**fabhead** · 3 March 2013, 12:18

Thanks Jessica, that makes sense.

What about the idea that having public liability as well looks better for being self employed business for IR35 purposes? Is that worth thinkng about?

Policy bee offer 1 mill of both for £230 pa. Cheapest quote for 1 mill of PI only is £176. Is it worth getting both for IR35 these days for 50 odd quid?

**Jessica@WhiteFieldTax** · 3 March 2013, 12:23

Probably worth the differential for peace of mind, and it won't hurt IR35 even if its not part of the "holy trinity" of major status pointers.

**fabhead** · 3 March 2013, 12:35

Great, will do

What's the Holy Trinity please so I can make sure I am on track

**SueEllen** · 3 March 2013, 12:41

The reason I initially had to get public liability insurance is because I had a client who used shared office space in the UK. The kitchen area and the toilets were shared with other businesses.

This meant that while employees of the client were covered by the client's public liability insurance if something happened contractors were not.

The client explained this, had it in their contract and there was a clear notice in the shared areas put there by the premises owners stating that businesses had to have their own public liability insurance to use the space.

Also some clients allow you to use your own laptop to do their work. You aren't covered under their policy if the laptop goes missing and while my home contents insurance covers my company office equipment at home it doesn't cover it at someone else's premises. I hence have bundled insurance that covers both things.

**dyven** · 3 March 2013, 14:17

Just as an aside.

I just got my PI (1 Mil cover) for £147 through qdos. Heard about them through here. Save yourself a few quid.

ps. just to ensure admins dont jump on top this. I have no affiliation whatsoever with any insurance company/provider

**Jessica@WhiteFieldTax** · 3 March 2013, 21:49

Originally posted by fabhead View Post

Great, will do

What's the Holy Trinity please so I can make sure I am on track

~ personal service obligation
~ mutuality of obligation
~ control

All three must be there for employment to be established. Of course with IR35 you are dealing with a hypothetical contract, so there is opportunity for HMRC to try and imply them.

The point is that insurance and the like is a secondary indicator - get one of the "holy trinity" safely nailed and you are much safer.

HTH

**fabhead** · 3 March 2013, 23:16

It does - thanks Jessica

And thanks everyone for the recommendations - I got a quote from QDOS but was a bit higher. Decided to get the policybee 230 for both one as am super-keen newbie (with redundancy money to burn

) - sure it will wear off.

**psychocandy** · 4 March 2013, 10:15

Originally posted by dyven View Post

Just as an aside.

I just got my PI (1 Mil cover) for £147 through qdos. Heard about them through here. Save yourself a few quid.

ps. just to ensure admins dont jump on top this. I have no affiliation whatsoever with any insurance company/provider

Me too. Was about £20/yr to get the full lot so I though, why not?

Professional Indemnity Insurance - but do I need Public Liability too?