Insurance & Tax liabilities - Legal contract

[IceBoy]

Hi All,

Hope everyone had a great Easter Weekend?!

I operate as a limited company and am providing business & marketing knowledge to a company.

In the contract they drew up the following has come up.....

"full & comprehensive insurance policy for negligence, employer's liability & public liability, in respect of the provisions of the service at a level to cover and on terms reasonably acceptable to [the company I will work for NAME]"

Basically, this is the contract, I need to sign but not sure what the above insurance policy would be or where i would get one? Is it expensive?

IceBoy

[Eric Mc]

Not clear what you are saying.

Do they want your company to take out its own insurance to cover these issues?

[IceBoy]

Yes I think so Eric.

I am just a consultant for them.

IceBoy

[mouseymousey]

Sounds to me like you need an insurance policy which covers the usual suspects of public liability, professional indemnity and employers liability.

It's pretty standard stuff for a limited company. We use Hiscox insurance to cover all 3, it's not cheap though. We pay around £230 a month but it also includes our office contents insurance. I believe the price is based on turnover.

[frank hovis]

SOunds pretty standard insurnace they have stipulated

I have my insurance through

Caunce O'Hara , they where have the cost of other brokers i spoke to

[Amateurish]

The cover for "negligence" is the expensive one - it means Professional Indemnity. Best to ask in advance what level of cover they require as multi-million pound cover will be very expensive.

Employer's is a legal requirement anyway IIRC.

[Eric Mc]

I would strongly advise that your company does take out its own insurance. It is a good indicator that you are "in business on your own account" - especially useful if HMRC want to impose IR35 on you.

[Alec]

frank hovis said:

Caunce O'Hara , they where have the cost of other brokers i spoke to

I use these guys too. Seem good so far, but I've not had to claim.

[IceBoy]

Is PI different if you are LTD or sole trader etc?
IceBoy

[Eric Mc]

In what way different?

[IceBoy]

when I apply for a quote online, I'm guessing there is a difference in price of policy if i am sole or LTD......Having just written that, I guess maybe no difference? Doh !

I'm just confusing myself.

I should not need employee/public liability as I am a consultant by myself right ?

IceBoy

[mouseymousey]

IceBoy said:

when I apply for a quote online, I'm guessing there is a difference in price of policy if i am sole or LTD......Having just written that, I guess maybe no difference? Doh !

I'm just confusing myself.

I should not need employee/public liability as I am a consultant by myself right ?

IceBoy

You will need public liability because that covers you, for example, if an employee of your client trips over your laptop power cable and breaks an arm.

Employers' liability insurance is a legal requirement for any business that has one or more employees, so if you're an employee of your company then you'll need it.

ETA: Public and Employers' liability are the cheapest bits of a policy, it's the professional indemnity that I found to be most expensive. That was mainly due to the fact that one client demanded that we had £2 million cover of PI insurance when most standard policies were only offering £1 million.

Edited by mouseymousey on Wednesday 7th April 11:14

[Eric Mc]

And it is the limited company that is trading (not you personally), it is the limited company that needs to be insured.

Edited by Eric Mc on Wednesday 7th April 11:52