Business Insurance

boon_boy · 16-06-2009, 09:59 AM

hi guys and girls! please help! i need to know whether or not to take out business insurance? i have my own limited company but haven't received the money for my first invoice although i've been contracting here since the start of may. someone has suggested that i need professional indemnity but looking at the prices i really don't know whether or not it's worth it. i've also looked at directors & officers insurance but again not sure if i really need it.

thanks very much..

Rob Crossland · 16-06-2009, 10:22 AM

Hi,

Things to consider:

(1) Does your contract with the Agency/Client state that you have to have PI cover (and at what level)?

(2) A combined Employers, Public and PI policy is probably worth getting if you intend to trade for some time. The former are necessary (EL/PL) anyway so may be cost effective to get a combined one.

(3) D&O is probably not required separately and some of the features are included in the Contractor combined policies that are on the market anyway.

curleyted · 16-06-2009, 02:54 PM

I think I've always been stipulated to have PI cover, I thought it was just one of those things you needed....

CliveP · 16-06-2009, 03:21 PM

Quote:

Originally Posted by curleyted

I think I've always been stipulated to have PI cover, I thought it was just one of those things you needed....

Most of agency contracts that I've ever signed mention £2m PI, and at least £2m Public and £10 Employers. I'm almost sure you need Employer's Liability by law anyway so you may as well go for the lot. I'm not sure what additional protection if offered under a Director's & Officers policy, get yourself on goggle or ask someone like Tony Harris on the experts forum.

Seb Maley · 16-06-2009, 07:23 PM

You probably don't need Employers Liability by law - there is a specific exemption for "companies employing only their owner where that employee also owns 50% or
more of the issued share capital in the company". Needless to say, it is often still required contractually.

It's obviously handy to have these policies from an IR35 perspective as well - in business on your own account and all that.

They're not really that expensive if you shop around. We can do the whole lot for about £225 per annum (£10m EL, £1m PL and £1m PI).

curleyted · 17-06-2009, 02:58 PM

Quote:

Originally Posted by Seb Maley

It's obviously handy to have these policies from an IR35 perspective as well - in business on your own account and all that.

See, I'd agree with this. Someone on here once said something like "want to print out business cards, tell everyone you're a director of your own company and that you're your own boss? Act like it". I think that pretty much sums it up

Azeey · 10-07-2009, 01:11 PM

Hate to bump an old thread, but my renewal is due. Any recommendations? Might shop around for quotes for once.

Seb Maley · 10-07-2009, 02:21 PM

Quote:

Originally Posted by Azeey

Hate to bump an old thread, but my renewal is due. Any recommendations? Might shop around for quotes for once.

Are you an IT contractor?

Azeey · 10-07-2009, 02:31 PM

Well, I claim to be.

Seb Maley · 10-07-2009, 02:38 PM

That's good enough for us. To save you putting a quotation though on our site the prices are as follows:

Professional Indemnity - £132 for £1m or £168 for £2m
Employers (£10m) & Public Liability (£1m) - £92.50, or £40 for PL on its own.

All annual premiums, obviously.