Professional Indemnity Insurance - but do I need Public Liability too?

[BolshieBastard]

Hi There, I am a newb IT contractor making switch from perm to first contract, Limited Co.I am about to get Public Indemnity Insurance, as requested by agency. Noone has mentioned how much so I am going with 1 million which seems pretty standard around here.

My question is, do I need to add on Public Liability insurance as well?

I am sole director and shareholder (at moment, unless someone can advise me otherwise), no dodgy wives in company doing nothing for 7K (I am the wife and I do plenty!). So I have no employees (I think?)

If not requested, one-man band, and standard IT contractor for a bank - do I need it?

Thanks (all advice welcome - I got first contract on Friday and they want me to start next week!) (but don't worry, am meeting with accountant on Monday and know about gettimg contract checked for IR35 etc)

IMHO, you should always have Prof Indemnity and Public Liability Insurance. There's no legal requirement for any insurance unless you have 2 or more working employees when you must have Employer's Liability.

[substeve]

There's no legal requirement for any insurance unless you have 2 or more working employees when you must have Employer's Liability.

Is this true? I've only got one employee working for me and my insurance broker has said that employers liability is compulsory.

[Jessica@WhiteFieldTax]

Is this true? I've only got one employee working for me and my insurance broker has said that employers liability is compulsory.

AIUI the obligation exists if you have anyone other than working shareholders / directors.

[northernladuk]

Is this true? I've only got one employee working for me and my insurance broker has said that employers liability is compulsory.

Can't find anything about 2 people minimum... You would think logic would dictate any number of employees and you would need the insurance. There are exceptions though for stuff like family businesses (but not if they are a ltd) etc...

http://www.hse.gov.uk/pubns/hse40.pdf

[substeve]

Phew! Thought I might have been paying for something I don't need but it seems my broker was right. I suppose regardless of legal or not, everyone should cover all their liability angles in this day and age.

[Wanderer]

Is this true? I've only got one employee working for me and my insurance broker has said that employers liability is compulsory.

But are they an employee on PAYE or a subcontractor in a B2B relationship?

Probably doesn't hurt to have EL insurance anyway and it doesn't cost much.