Pi/PL/El insurance renewal timing.

[TheCyclingProgrammer]

Even if she is a director?

I've had mixed answers on this so for the sake of what it costs, I got it anyway as its usually bundled in with public liability.

Regarding professional indemnity OP should check the terms of their cover because i know for QDOS cover to apply retrospectively there needs to be no break between renewals.

[northernladuk]

Bit of a piss take if you want to employ your wife so you can pay her in a tax avoidance set up but then argue she's not an employee when it comes to your legal obligation to have insurance really.

[Qdos Contractor]

The PI and EL/PL policies aren’t as ‘claims free’ as you might think. I completely understand why that is the common view, but I think you’d be surprised at the volume of claims we actually see. The insurers paid out on one, from an IT contractor, as recently as last week.

Whilst these policies are obviously very different to car insurance (which they are repeatedly compared to), they are definitely more than a bit of paper.

[TheCyclingProgrammer]

Bit of a piss take if you want to employ your wife so you can pay her in a tax avoidance set up but then argue she's not an employee when it comes to your legal obligation to have insurance really.

Just double checked this and you don't need it if you only employ family members.

https://www.abi.org.uk/Insurance-and...lity-insurance

EDIT: above article is misleading, exemption only applies to non-incorporated businesses.

[Ketto]

The PI and EL/PL policies aren’t as ‘claims free’ as you might think. I completely understand why that is the common view, but I think you’d be surprised at the volume of claims we actually see. The insurers paid out on one, from an IT contractor, as recently as last week.

Whilst these policies are obviously very different to car insurance (which they are repeatedly compared to), they are definitely more than a bit of paper.

Appreciate you can't speak about specific cases, but could you give us an idea of the types of claims you tend to see?

[northernladuk]

Just double checked this and you don't need it if you only employ family members.

https://www.abi.org.uk/Insurance-and...lity-insurance

But that is wrong. If we run a LTD then an employee is an employee regardless of relation. That article fails to make that clear.

However, there are some notable exceptions to this rule – the first being of particular relevance to our site visitors.
•If you run your own limited company for contracting, and you (as a director) are the sole employee, and own 50% or more of the shares, your company is exempt.
•If you run a family business, and all your employees are close relatives, you are also exempt, but this exemption only applies to family businesses which have not been incorporated.

and

Startups, Tax, & Software: Do You Need Employers' Liability Insurance?

Exemptions from ELI

The UK Health & Safety Executive have a guide to ELI for employers, which describes what exemptions there are. In particular the following are exempt:
Most public organisations (government departments, police...), and health bodies.
Family businesses where all employees are closely related to the owner (but not when the business is a limited company).
Companies which only employ their owner, where that owner owns 50% or more of the issued share capital.

When do I need employers’ liability insurance? | Simply Business

Do I need employers liability insurance for a limited company?

If you run a limited company and you employ one or more people, you need employers’ liability insurance. Even if you’ve only got close family members on your staff, the fact that your company is incorporated as a limited company means that you’re still required to have a policy.

[TheCyclingProgrammer]

But that is wrong. If we run a LTD then an employee is an employee regardless of relation. That article fails to make that clear.

You're right, I remember picking up on this when I looked into it last time, but forgot. The article I posted is very misleading.

[Lance]

MY PI/PL/EL insurances are up at the end of this month, my next contract renewal is 5 months away, do I bother renewing them straight away or wait until I next need to show evidence of them? Lets face it the only reason we fork out for them is because evidence of holding them is required when we sign a contract, on ones ever claimed on them so its the equivalent of throwing 300 odd quid out of the window every year. Thoughts?

I suppose it depends on whether you want to be in breach of your contract, and potentially open yourself up to unlimited liability claims. Low risk i admit. Pretty flipping high impact though.

and for £300 a year. Are you having a laugh?


PS. I don't have EL and it's £205 from Qdos.

[northernladuk]

PS. I don't have EL and it's £205 from Qdos.

Your missus says she has 20% of the shares in your company. Do you pay her wage as well?

[Lance]

Your missus says she has 20% of the shares in your company. Do you pay her wage as well?

Yes she is a shareholder but no she's not an employee.

And it's our company not mine :P