Required Insurance

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A

AThomason

  • #1
    Hello there,

    I am thinking of starting a Limited Company - i currently opperate just under the name.

    Before i do, i need to know what if any insurance i am required to have by law. I have searched the internet but have found no proper answers to my question.

    Basically, it will be only me (the director) working for the company, there will be no other employees. Clients will not visit me on the premesis and i will rarely visit them, as most of my work is done without them.

    If someone could tell me what insurance i would be required to have, i would appreciate it very much.

    Regards,

    A Thomason
     
    K

    KM-Tiger

    Free Member
    Aug 10, 2003
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    Bexley, Kent
  • #2
    Interesting question, in your circumstances.

    To the best of my knowledge you are required by law to have Employer's Liability Insurance, and that's the only one that is a legal requirement. As a Director you are an employee.

    But exactly who is going to prosecute you for not having it, or to bring a claim that needs it?

    The only circumstances I can think of are accident or death at work, where you or your next of kin want to claim compensation from the company.
     
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    A

    AThomason

  • #3
    Thank you very much for your quick reply.

    Is there any way that i can be added onto someone else's insurance or does it have to be in my companies name? It just seems pointless me paying out good money for something that i am never going to need.

    I know many companies which have Employers Liability Insurance, many of them clients of mine - can i not count as an employee of them?

    The other thing i would like to know is if there is a fine for not having it, or can anything happen to me or my company if i don't?
     
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    C

    Claud

  • #6
    Hello.

    You will need employers liability and products liability if you have a product to sell to customers. In some case you may need specialized insurance for your field.

    And do not forget that you will have to do an annual return every year along side corporation tax and self ass tax.

    I think you need to speak with an accountant as sometime it is not worth becoming LTD for a one man band. I know this as I have been there.

    Claud
     
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    A

    AThomason

  • #7
    Thank you all...

    I have spoken with my accountant but he does not cover the insurance aspects, It is remote support and website design (etc.) that i offer - so no products to sell, only licences for databases.

    One of the reasons that i am looking into this is because of the sueing aspect - it will seperate out what is mine and what belongs to the business.
     
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    A

    AThomason

  • #9
    Hi again,

    Back to the debate about if i really need Employers Liability Insurance. Are you guys positive that i do?


    ----------------------
    Taken from The Employers’ Liability (Compulsory Insurance) Act 1969

    Under the heading "Does the law apply to me?"

    You need employers’ liability insurance unless you are exempt from the Employers’ Liability (Compulsory Insurance) Act. The following employers are exempt:
    Click to expand...
    companies employing only their owner where that employee also owns 50% or more of the issued share capital in the company.
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    ----------------------

    The source of this info: hse.gov.uk/pubns/hse40.pdf
     
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