Business insurance question

[Tokyo-Joe]

Hey all,

One for the legal bods!

I have my own ltd company that I do contract work for on site with clients, in client offices with client hardware. My field is website development.

I am the sole employee of the business and the director.

I do not have any insurance / liability / cover for the business. Is this a requirement for the type of work I do?

Any recommendations and / or ballpark on costs involved would be greatly appreciated as I don't want to get stung by my own negligence.

Thanks!
Joe

[Problem Child]

We now live in such a litigious and claims driven culture that I believe contractors/ consultants/ service providers should be insured. Not necessarily because of negligence but accidents can and do happen.

If members of the public (or customers) visit your premises or you go to theirs (including if you work from home), you should think about taking out public liability (PL) insurance. PL insurance covers any awards of damages given to a member of the public because of an injury or damage to their property caused by you or your business (including any of your employees). It also covers any related:

legal fees
costs
expenses
hospital treatment, including ambulance costs, that the NHS may claim from you
I dont know how much it costs but premiums are based on the type of business and rated on an estimate for the level of activity of the business. For most businesses this will be turnover based, although other factors may be used. Eg premiums for a hotel might be calculated on the number of beds provided to reflect the number of guests. If your business is selling your "knowledge" rather than a product you may also want to consider Professional Indemnity Insurance. Many companies who you might do business with may specify which type and what level cover you require in their terms and conditions. The numbers can sound quite scary if you're dealing with large clients (c£5m cover is not uncommon but is also not too expensive because everyone has it)

I dont need it (I am employed rather than own a business) but I ask that any contractors I use, have it. All major insurance providers will sell appropriate products so have a look at their websites and browse around. If you are a member of an "industry lead body" such as the UK Web Design Association they may have recommended types and levels of cover for people in the industry. They may even have negotiated preferential rates for members or may even provide cover themselves.

Check out this Business Link:
http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1074301656&type=RESOURCES

Hope thuis helps

[NoelWatson]

Some clients/agents may insist on it - I use Caunce

http://www.contractorfinancials.com/other-services/business-insurance/scheme-prices

[Tokyo-Joe]

Thanks guys, that is great advice :)

[kingsley]

Hi Tokyo-Joe

We have a company and with 2 others I am a director. We formed the company 10 years ago now. I would have thought it was in your own interest to have insurance. We are a service provider company to corporate clients. As a minimum requirement we must have :
Employers Liability this is 10m .Public & Products ( Including Inefficacy ) 5M . Contract \works 50K . Directors / Officers Liability 50K . Professional Indemnity 100K. If you provide a service / products /visit clients work place I would strongly recommend Public / Products, and Professional Indemnity as a minimum.

You could speak to an insurance company or if you know other companies offering the same service give them a call and just ask them what insurance they have. Nobody likes to pay for insurance they may never need....I am amazed at the types of insurance cover now available. Good luck. Kingsley

Glad your car is back on the road.