Insurance Requirements for Ltd company

[heaveyb]

I have read many different threads here and elsewhere about insurance requirements for a single director limited company......as far as I can tell from reading DTI and Business Link........

1) Public Liability Insurance is only required by certain business and not required by law for contractors

2) Since February 2005, limited companies with only one employee, where that employee also owns 50 per cent or more of the issued share capital in the company, have also been exempt from compulsory EL insurance.

3) Professional Indemnity Insurance not compulsory

That the case?

Not that I dont want some peace of mind its just that I want to be clear of the legal requirements

[freshblue]

1) An agency or client can still ask for you to provide cover though. A combined EL/PL package is usually not too expensive if you have a Ltd company or most brollies provide it.

2) As above

3) PI is not compulsory to carry by law but again Agency/Client can mandate it. Costs vary dependent on level of cover required and again most brollies provide it.

[heaveyb]

Agreed...the basic cover listed on this site with Caunce O'Hare (Employees Liability & Public Liability for £122/year and Professional Indeminity at £165/year) seems best option to cover any basic client needs if and when they arise and to provide peace of mind.

Main ommissions are that the Public Liability is limited to the UK and so not applicable for overseas contracts..if thats possible? But a standard business travel option will provide personal liability cover and the Professional Indeminity doesnt cover you for US or Canada....so would have to take out additional policy or extend standard cover if & when working there

Professional Expense Insurance (PEI) to cover tax investigation expenses etc is also worth thinking about. £50K PEI cover is available at £75/year from CO'H though worth noting that the Professional Contractors Group (www.pcg.org.uk) includes 75K PEI cover in its standard membership (£141 incl VAT)

Ben