Limited Business insurance - how much do you pay?

[220s plenty]

I'm a director of a limited business performing setting out works in construction - I'm the only employee.

To fulfil contractual obligations it's been stipulated I am insured (min value) for the following:

Employer liability - 10 million GBP
Public liability - 5 million GBP
Professional indemnity - 1 million GBP

I've not been able to gain quotes for the professional indemnity from three out of four insurance brokers - the only broker that will insure me for all of the above is quoting £750 - which I wasn't prepared for as I was expecting no more than 1/3 of that value in total.

I'm interested in comparing that quote to other professions to conclude if it's the business type that's penalising me or if that's a typical quote.

Thinking of buying the insurance to obtain the certificates then cancelling within the 14 day cool off frankly.

Interested in what are others paying.

[PistonBroker]

It's the type of business I'm afraid and the perception of risk that the insurers have.

You're right in your feeling that others will be spending less - an IT contractor, for instance, will pay less than you - but there's less Public Liability exposure there.

I appreciate you may be asked for it contractually, but I'd push back on the Employers' Liability as there is no legal requirement for you to have it - http://www.hse.gov.uk/pubns/hse40.pdf

'You need employers’ liability insurance unless you are exempt from the Employers’ Liability (Compulsory Insurance) Act. The following employers are exempt:

companies employing only their owner where that employee also owns 50% or more of the issued share capital in the company.'

Remember, these are usually broadbrush contractual requirements put together by someone who doesn't completely understand what it is they're asking for.

Happy to have a nose for you in the morning if you'd like - 01823 230249

[Splats]

Doesn't seem too bad to me. I install wood burning stoves (limited company) and pay around £800p/a for:

£10M Employers Liability
£2M Public Liability
£10k Stock in Container

Seems reasonable enough to me given the sort of works I undertake in people's homes.

[Insurancejon]

the general matrix premiums are calculated on (in reality much more detailed) are:

Turnover
wages
what your trade is

the trade sets the rate
the wages and turnover gauge the exposure to risk, and the premium is essentially the rate times financials

obviously this is for liabilities, as stock and material damage is based on the amount insured.

for office based risks the PI is the expensive bit

[Animal]

220s plenty said:

I'm a director of a limited business performing setting out works in construction - I'm the only employee.

To fulfil contractual obligations it's been stipulated I am insured (min value) for the following:

Employer liability - 10 million GBP
Public liability - 5 million GBP
Professional indemnity - 1 million GBP

I've not been able to gain quotes for the professional indemnity from three out of four insurance brokers - the only broker that will insure me for all of the above is quoting £750 - which I wasn't prepared for as I was expecting no more than 1/3 of that value in total.

Did you get this sorted?

As Jon said, the Professional Indemnity will be the expensive bit based on Insurers' perception of the risk. For a proper policy with a decent Insurer I'd say that £750 for PI, PL and EL is pretty good.

Do you think you might be asked to carry these insurances by other clients in the future? If so, it might not be a bad idea to buy the cover.

[trickywoo]

I pay £1k which I thought was ok but seems dear in light of other posters.

Just me in the Ltd. No stock and no interaction with the public as it’s B2B consulting.

I’m going to give it all a through review before renewal early next year.

[Animal]

trickywoo said:

I pay £1k which I thought was ok but seems dear in light of other posters.

Just me in the Ltd. No stock and no interaction with the public as it’s B2B consulting.

I’m going to give it all a through review before renewal early next year.

Your income plays a huge part in your premium: the more you earn the more you pay (roughly speaking).

[trickywoo]

Animal said:

Your income plays a huge part in your premium: the more you earn the more you pay (roughly speaking).

Business turnover is £100k. Therefore I'm paying 1%. Accountancy fees are the same 1%. I could however, be easily 20% down on this turnover and not really much more than 5% over I don't think.

[VEX]

Lol, thats peanuts, I am paying over £3k, and that is the best I can get.

All because I have one project where I work on a flat roof, 12 storeys up, with 3 barriers to climb over before I can accidentally fall off it.

But underwriters dont see that but, just the height and word 'Roof'

[Animal]

VEX said:

Lol, thats peanuts, I am paying over £3k, and that is the best I can get.

All because I have one project where I work on a flat roof, 12 storeys up, with 3 barriers to climb over before I can accidentally fall off it.

But underwriters dont see that but, just the height and word 'Roof'

Another big factor is your trade. From a PI (Professional Indemnity) perspective, management consultancy is seen as a low-risk profession, whereas a health and safety consultant would be a comparatively higher risk and a roofing contractor higher still (no pun intended).

[VEX]

Not a roofing contractor though,

Run of the mill AV Installer, with one support contract where I have to service the satellite dishes on a tower block, it is physically impossible to 'accidentally' fall off the roof!

[Mr Pointy]

Splats said:

Doesn't seem too bad to me. I install wood burning stoves (limited company) and pay around £800p/a for:

£10M Employers Liability
£2M Public Liability
£10k Stock in Container

Seems reasonable enough to me given the sort of works I undertake in people's homes.

But you don't have Professional Indemnity, which is the expensive bit. If you install a stove poorly & it burns someone's house down which bit of your insurance is going to pay out?

[Animal]

VEX said:

Not a roofing contractor though,

Run of the mill AV Installer, with one support contract where I have to service the satellite dishes on a tower block, it is physically impossible to 'accidentally' fall off the roof!

Might be worth your while shopping around a couple of weeks before your policy is due to renew.