Insurance when contracting

[Ali_D]

Quick question to insurers or contractors. If I set up a limited co to put my income from contracting through what insurance policies do I require and what is the likely cost?

Background - I'm an accountant who'll be doing interim work so I can either be PAYE through the agency, set up my own limited co, or go through someone like Giant who'll set up a company for me (they also provide various insurances included in the cost).

I guess I'd need employee's liability, 3rd party liability but what else?

Thanks

Alan

[Eric Mc]

Professionsal indemnity?

Will you be offering any professional advice i.e. operating as an accountancy practice?
Will you need a practising certificate from your professional body?
Does your professional body allow you to operate through a limited comapny?

[insurance_jon]

If your the only person employed by the Ltd company you don't need employers liability as you are only responsible for yourself. There are no compulsary insurances, but Proffessional Indemnity is needed for peace of mind. Pubilc Liability can be built into this.

If you want a chat about it just drop me a mail through here or through www.lockyers.co.uk

[Ali_D]

Oh no not doing advice!!

I'll be 'interim management' so under ACCA rules don't need the practising certificate - thinking of getting one anyway though.

[Eric Mc]

You'll definitely need professional indemnity then.

[plasticpig]

insurance_jon said:

If your the only person employed by the Ltd company you don't need employers liability as you are only responsible for yourself. There are no compulsary insurances, but Proffessional Indemnity is needed for peace of mind. Pubilc Liability can be built into this.

If you want a chat about it just drop me a mail through here or through www.lockyers.co.uk

Er why? The whole point of a Ltd comapny is liability is limited. Its far easier to just let the comapny go down and start agian rather than fight a large negligence claim.

[Eric Mc]

An individual cannot always hide behind a limited company - especially if his business centres on offering professional expertise and professional services. So, taking out the correct insurances would be very advisable.

Also, the spectre of IR35 hovers over all personal service type companies. Taking out a separate business type insurance helps make the case that you are operting a bona fide business and not using the company as a mere "intermediary" device.

Finally, if, as the OP says, he intends to apply for a practising certificate from his accounting body, he is obliged under their rules to take out Profesional Indemnity Insurance.

[BoxheadTim]

From what my accountant mentioned, the IR keeps a beady eye on "full service companies" like Giant so you may well be better off setting up your own ltd co.

+1 on the Professional Indemnity insurance.

[thegreengoblet]

Eric Mc said:

Also, the spectre of IR35 hovers over all personal service type companies. Taking out a separate business type insurance helps make the case that you are operting a bona fide business and not using the company as a mere "intermediary" device.

Another tick in a box is the way I view it.

I've been using a company called ICON Insurance for most of my needs. Their PI insurance was very reasonable. You can find them on the Web via google.