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

[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.

[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.

[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

[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.

[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.

[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.

[psychocandy]

Just as an aside.

I just got my PI (1 Mil cover) for £147 through qdos. Heard about them through here. Save yourself a few quid.

ps. just to ensure admins dont jump on top this. I have no affiliation whatsoever with any insurance company/provider

Me too. Was about £20/yr to get the full lot so I though, why not?

[fabhead]

It does - thanks Jessica

And thanks everyone for the recommendations - I got a quote from QDOS but was a bit higher. Decided to get the policybee 230 for both one as am super-keen newbie (with redundancy money to burn ) - sure it will wear off.

[Jessica@WhiteFieldTax]

Great, will do

What's the Holy Trinity please so I can make sure I am on track

~ personal service obligation
~ mutuality of obligation
~ control

All three must be there for employment to be established. Of course with IR35 you are dealing with a hypothetical contract, so there is opportunity for HMRC to try and imply them.

The point is that insurance and the like is a secondary indicator - get one of the "holy trinity" safely nailed and you are much safer.

HTH

[dyven]

Just as an aside.

I just got my PI (1 Mil cover) for £147 through qdos. Heard about them through here. Save yourself a few quid.

ps. just to ensure admins dont jump on top this. I have no affiliation whatsoever with any insurance company/provider

[SueEllen]

The reason I initially had to get public liability insurance is because I had a client who used shared office space in the UK. The kitchen area and the toilets were shared with other businesses.

This meant that while employees of the client were covered by the client's public liability insurance if something happened contractors were not.

The client explained this, had it in their contract and there was a clear notice in the shared areas put there by the premises owners stating that businesses had to have their own public liability insurance to use the space.

Also some clients allow you to use your own laptop to do their work. You aren't covered under their policy if the laptop goes missing and while my home contents insurance covers my company office equipment at home it doesn't cover it at someone else's premises. I hence have bundled insurance that covers both things.

[fabhead]

Great, will do

What's the Holy Trinity please so I can make sure I am on track

[Jessica@WhiteFieldTax]

Probably worth the differential for peace of mind, and it won't hurt IR35 even if its not part of the "holy trinity" of major status pointers.

[fabhead]

Thanks Jessica, that makes sense.

What about the idea that having public liability as well looks better for being self employed business for IR35 purposes? Is that worth thinkng about?

Policy bee offer 1 mill of both for £230 pa. Cheapest quote for 1 mill of PI only is £176. Is it worth getting both for IR35 these days for 50 odd quid?

[Jessica@WhiteFieldTax]

It's probably not necessary, unless agent / client insists on it.

Normally Professional Imdemnity is standalone, and other insurances are bundled together - Employers Liablity, Public Liability, business contents etc - business all risks.

If you have no employees other than yourself, employers liability isn't compulsory, and the reality is that if someone at your client tripped over a cable or your bag at your workstation, they are likely to focus attention in the client as premises owner. To that end unless there is anything inherently risky in what you do, you should be fine with just PI.