Insurance for limited company

Hello, wonder if anyone has any advice on insurance for a my limited company.

I have submitted a application through a broker for hiscox technology companies cover.

This includes PI, employers insurance, and other things.

The biggie is PI, the guy suggested £1million would be regular cover for someone in my my profession (web design and development), although he did mention the three levels and 1/2 million was quite a bit cheaper, while there was a level about the £1 million

I'm just checking if £1m was necessary ! I'm a small operation, myself carrying out the web work, and my wife carrying out admin duties as an employee. Basically It's unlikely to ever happen - but I'd like to be covered for any legal action against my work. eg an online shop being down and losing revenue etc.

Thanks

MRO

[northernladuk]

1 Mil seems to be the standard. I push a pen around and the last 3 contracts have asked for 1 mil cover.

PI/PL + 3 free contract reviews costs around £250 with QDOS so I pay and forget. There have been many long discussions about how many people have ever needed to claim this but for that price I am happy to have it.

[mro]

Hi, Thanks - I used to work for recruitment agencies freelancing at the start, but over the last year I have picked up more of my own clients, so I'm not sure of the contract review stuff will apply to me so much. Although I do have a bit to learn about that side of things. For my clients I haven't been using written contracts but I really should start doing this I guess!

I think all in all the insurance will be roughly £500, it feels about right - not sure if I should shop around..quite a few places I inquired didn't really seem to know how to handle insuring web design/programming Where as this policy seems to be just right.

Thanks,

MRO

[northernladuk]

Hi, Thanks - I used to work for recruitment agencies freelancing at the start, but over the last year I have picked up more of my own clients, so I'm not sure of the contract review stuff will apply to me so much. Although I do have a bit to learn about that side of things. For my clients I haven't been using written contracts but I really should start doing this I guess!

You are not using written contracts?? So how are you definining and agreeing work? Verbally? You are aware this is a contracting site? How are you keeping outside IR35? How do you deal with payments and it going wrong if nothing is written?

It does sound like you are selling a small service to multiple clients so is a great pointer to being outside IR35 and so on but what will you do if their are disputes over payment and deliver and the like? Maybe what you do is completely different to what I am used to but still need to learn it to know for sure what you do not need.. if that makes sense.

[mro]

Hi, Yes up to now with my own clients it's been verbally/email. Before it was more freelance contracts through agencies for which I signed initial agreements to cover all the work I did for them.

It's more my own direct clients has taken over and I don't pick up much recruitment agency work now, and I realised I should have had this kind of thing in place already - including written contracts with clients, so I'm taking steps to sort it all out.

Apologies if it's not contracting specific, it's just I started out on here and have got some good information off here.

Cheers

MRO

[northernladuk]

I expect you are not a member of the PCG but they have sample contracts to use. I think QDOS said it had some as well. Not sure if they are applicable for short periods of work such as yours but a good start.

Even if it isn't a contract as such some agreement on payment terms etc so you can take it further if they don't pay. I would have thought some client and sometime won't be happy with what you produce so maybe cover that etc...

[mro]

Thanks, I'm just getting my insurance sorted now - and also going to get some contracts sorted and start using them. Thanks for the tips, Cheers MRO