Originally posted by sigma
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Have a read about how Limited Companies work but basically, the liability of the company is limited to the value of the shares issued (hence, it is called "limited" company). In a typical contractor's LTD company there may be 1 or 2 shares issued with a value of typically £1 each. Alternatively some companies issue 100 shares at 1p each.
If your company has a lot of assets, a brand you have worked hard to build or cash retained in the company then you need to be a bit more careful.
Originally posted by sigma
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Originally posted by sigma
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You would be expected to give the care and consideration to the level of insurance cover required that a reasonable person would do. The PCG offer standard policies with £250,000, £500,000 or £1,000,000 worth of PI insurance. You should consider your circumstances and use your good judgement to decide which one you want. If you can stand up in court and explain the logic behind the decision and how you took professional advice from (say) PCG then I can't see that there would be a major problem.
Personally, I would lean towards the lower of the three unless the agency/client demanded otherwise.
Something to underline in red though: Don't EVER enter into a contract where you as director give a personal guarantee on ANYTHING. If you do this then you are personally underwriting your Limited Company with unlimited liability and this is not a good place to be. I have seen agents try and slip this in so watch it. Remember, the contract is between your company and the agent, not you personally. It is OK for you to be the named consultant, so long as it makes it clear that you may also send a substitute.
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