What Insurance ? What Insurance ?
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  1. #1

    mro

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    Default What Insurance ?

    Hi,

    Just wondering - I have been thinking about Insurance for my limited company.

    I am predominately freelance web design/development, working on companies premises - usually this kind of work is through a recruitment agent.

    I also have direct clients where I work from home, I have one part time employee who looks after all my admin at home, this allows me to get on with the web work.

    I'm guessing Professional indemnity is defintiely one I need, but not so sure about public liability ?

    Any thoughts ?

    Thanks for looking.

  2. #2

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    The PCG have a guide to insurance on their website I suggest you register and read it. Registration is free.
    "You’re just a bad memory who doesn’t know when to go away" JR

  3. #3

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    Quote Originally Posted by mro View Post
    I'm guessing Professional indemnity is defintiely one I need, but not so sure about public liability ?
    You don't need any of it in my opinion. The only reason to get it is if the agency or client demands that you do.

    You don't need public liability unless you have your own premises.
    You don't need employer's liability unless you have people on your PAYE payroll (spouse doesn't count).

    Professional indemnity may be required by your client but if they sue you then you can just shut down the company, presuming the company doesn't have any substantial assets.

    None of that stops agencies demanding that you have employers liability or public liability though.

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    Quote Originally Posted by Wanderer View Post
    You don't need any of it in my opinion. The only reason to get it is if the agency or client demands that you do.

    You don't need public liability unless you have your own premises.
    You don't need employer's liability unless you have people on your PAYE payroll (spouse doesn't count).
    If the company is incorporated and has more than one employee, or if you have one employee who owns less than 50% of the share capital you need Employers Liability Insurance by law.

    However a Director and Company Secretary aren't necessarily employees even though they are officers of the company, may do some paperwork and may get paid a "fee" as well as dividends.

    (Yes it may be about terminology but you need to be very clear about it when talking to people unless you want to get yourself mis-sold a product you don't need.)

    Quote Originally Posted by Wanderer View Post
    Professional indemnity may be required by your client but if they sue you then you can just shut down the company, presuming the company doesn't have any substantial assets.
    Some clients put terms in their contract that they will pursue you for the amount they paid you to get round this.

    Also you cannot close your company down if there is legal action intended or started. Though the fact the company doesn't have any substantial assets is helpful if they obtain a judgement against you.


    Quote Originally Posted by Wanderer View Post
    None of that stops agencies demanding that you have employers liability or public liability though.
    In regards to agencies most contractor companies are exempt from having to have Employers Liability Insurance by law. You don't need Public Liability if you don't work at a client who uses shared offices without their own toilet and kitchen facilities.

    If you drive a vehicle you need to get business insurance on it. Otherwise you won't be insured to drive to client sites as they are business trips.
    "You’re just a bad memory who doesn’t know when to go away" JR

  5. #5

    mro

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    Hi,

    Thanks for the replies, it's all useful stuff.

    "If the company is incorporated and has more than one employee, or if you have one employee who owns less than 50% of the share capital you need Employers Liability Insurance by law. "

    When the accountant created the LTD company for me, he created 100 business shares for me, and 50 each class (a or b cant remember at mo) shares for me and the part time employee (spouse,not a company secretary)

    Does this mean by law I need Employers Liability ?

    I think the main thing is about insurance is that I want to make sure I'm covered for any unforseen problems such as websites I have worked on breaking/being hacked leading to loss of business for client, disputes etc. Although maybe an uneccesary argument as I wouldn't put my clients in this position in the first place ! But I was thinking professional indemnity to be on the safe side, as I wasn't sure if it was a good idea not to have it.

    Liability - I guess the worse that can happen is someone could trip over my laptop lead possibly. It's a confusing situation as the majority of my onsite work is through a recruitment agent, so technically the client is employing them.

    Thanks for the tip on the car, I own my car, but I am using it for travel to clients. The insurance policy at the moment is from when I was permie and designated at "to work and back". I guess this means I may not be covered !

    Thanks

    Owen

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