Limited Company protection for self-published author and coach: how effective is it?

[dan_uk]

Hi.

I am planning to self-publish a non-fiction book and to launch a coaching business—yep, yet another one (x2).

To protect myself, I will of course obtain liability insurance and include a disclaimer both in the book and in the coaching agreement.

However, in the event that the disclaimer or insurance were to have any weaknesses, I am considering trading through a limited company. In this structure, the company would act as the publisher of the book, and any coaching agreements would be entered into between the client and the company, rather than with me personally.

That said, I have started to question how much additional protection this would truly offer. Could a client pursue legal action directly against me in my capacity as their coach? Similarly, could a reader attempt to sue me personally as the author?

In such cases, would it be possible for me to “deflect” the matter to the company, so that any potential liability would rest with the company rather than with me as an individual?

Apologies if this question reflects a somewhat naive or incorrect understanding—I have very limited knowledge in this area.

Any advice or clarification would be greatly appreciated.

Thanks,
Dan

 

[fisicx]

One for @Frank the Insurance guy methinks.

 

[WaveJumper]

Be interesting to see what @Frank the Insurance guy thinks but pretty sure you will want to have some form of professional indemnity insurance perhaps backed up by a client contract. Some thought should also be given to the dreaded data protection aspect too.

 

[dan_uk]

Be interesting to see what @Frank the Insurance guy thinks but pretty sure you will want to have some form of professional indemnity insurance perhaps backed up by a client contract. Some thought should also be given to the dreaded data protection aspect too.

Thanks.
Yes, I'll surely get insurance and have a contract signed by the client.
Once I have that, is working under a Ltd giving me an extra protection or not really? That's what I'm wondering.

 

[WaveJumper]

Well a LTD seems to protect an awful lot of people these days, so yes it could add an extra layer of protection against personal assets. I am no legal expert in that direction so proper legal advice should be sought to give real peace of mind.

 

[dan_uk]

Thanks.

My doubt is how the ltd protection works if a reader sues the author directly (as opposed to the publisher) or a client sues the coach directly (as opposed to the coaching business).

I'd like to get proper legal advice. I'm going to look online, even if the offer is overwhelming and it's not have a feel of who to trust.
If anybody has a recommendation, please send it via direct message.

Thanks!

 

[Mark T Jones]

Thanks.

My doubt is how the ltd protection works if a reader sues the author directly (as opposed to the publisher) or a client sues the coach directly (as opposed to the coaching business).

I'd like to get proper legal advice. I'm going to look online, even if the offer is overwhelming and it's not have a feel of who to trust.
If anybody has a recommendation, please send it via direct message.

Thanks!

Start from the point that anybody can sue who they like, for what they like - the question is whether they will succeed?

In the scenario you mention, it would be for you to demonstrate that the actions were of the company and not if you personally (mindful that as a director you carry responsibilities)

It would be very much a case-by-case basis.

But I agree you really should pay for dedicated professional advice ifthis is a real concern.

 

[Frank the Insurance guy]

Hi @dan_uk,

In terms of Professional/Publishers Indemnity insurance policies - they will usually extend to protect claims against individual employees (as opposed to the company) in respect of the work they carry out for the company.

This should be straight forward in respect of your coaching work - whether the claim against you personally or the company should be covered as you are carrying out the work on behalf of the company under a contract between the company and the customer.

However, it gets a little trickier in respect of the publishing side of things - if the company owns the Intellectual Property of the work, then the insurance policy is more likely protect you as an employee if a claim was made against you personally in respect of the content/publishing.

I would make sure that:
- you are formally an employee with a service contract or contract if employment in place
- any policy you look at includes cover for claims made against an employee

It is also worth investigating whether an insurers would provide a quotation in the joint names of your company and your personal name (Not sure if this would be available, but a good independent broker could investigate this for you and confirm).

 

[MikeJ]

Playing devil's advocate here, if you were to write a book claiming a certain person had done some terribly illegal things, I'm pretty sure hiding behind a limited company isn't going to help you very much.

 

[fisicx]

Whenever you read about libel cases it’s always the author taken to court not the publisher.

 

[WaveJumper]

Might also help if you can point to some qualifications within the field you are working in.

 

[NickGrogan]

What are you writing in this book that you think will get you sued?

Why would your coaching clients sue you?

Seems a strange place to start.

 

[DontAsk]

What are you writing in this book that you think will get you sued?

Why would your coaching clients sue you?

Seems a strange place to start.

Depends what sort of coaching.

 

[dan_uk]

Hi @dan_uk,

In terms of Professional/Publishers Indemnity insurance policies - they will usually extend to protect claims against individual employees (as opposed to the company) in respect of the work they carry out for the company.

This should be straight forward in respect of your coaching work - whether the claim against you personally or the company should be covered as you are carrying out the work on behalf of the company under a contract between the company and the customer.

However, it gets a little trickier in respect of the publishing side of things - if the company owns the Intellectual Property of the work, then the insurance policy is more likely protect you as an employee if a claim was made against you personally in respect of the content/publishing.

I would make sure that:
- you are formally an employee with a service contract or contract if employment in place
- any policy you look at includes cover for claims made against an employee

It is also worth investigating whether an insurers would provide a quotation in the joint names of your company and your personal name (Not sure if this would be available, but a good independent broker could investigate this for you and confirm).

Thank you so much for this.

I'm starting to think that trading as a company may not add that much in terms of liability coverage after all.
It may be better I invest the money and resources in getting a solid insurance protection and a bulletproof agreement for the coaching business.

If I trade as an individual, could I take up two separate insurance policies? A run-of-the-mill professional indemnity insurance for my work as a coach, and a more specific one for authors/publishers? Would they be compatible?

 

[dan_uk]

Might also help if you can point to some qualifications within the field you are working in.

Thanks for the suggestion. I agree.

 

[dan_uk]

What are you writing in this book that you think will get you sued?

Why would your coaching clients sue you?

Seems a strange place to start.

I see your point. I'm a very cautious person and I've read about lawsuits that I would find hard to imagine, but they happen.

I think I'm a rather diligent person who doesn't compromise on ethics, but you never know how other people see things.

The book doesn't contain any inflammatory content. However, it's a sort of self-help book. I don't write anything beyond my knowledge, nor any medical advice. There is also a clear disclaimer that everything is basically my own opinion and don't constitute expert advice.

Regarding the coaching business, I'll give you this example. It's not that uncommon that people ask a coach to help them take some decisions, also quite important ones. A decision may not turn out well and the client may decide that the coach had something to do with that.

 

[Frank the Insurance guy]

Thank you so much for this.

I'm starting to think that trading as a company may not add that much in terms of liability coverage after all.
It may be better I invest the money and resources in getting a solid insurance protection and a bulletproof agreement for the coaching business.

If I trade as an individual, could I take up two separate insurance policies? A run-of-the-mill professional indemnity insurance for my work as a coach, and a more specific one for authors/publishers? Would they be compatible?

Seems pointless (and more expensive) to have 2 policies - it should be easy to get 1 policy that covers both your publishing and the coaching work, which would be the best option.

Feel free to get in touch (my contact details below) if you would like help getting quotes.

 

[WaveJumper]

I wonder how many of these so called "financial experts" get sued ........... put your money here but "you may get back less than you put in" they seem to dodge the bullet on a regular basis

 

[FreddyG]

I wonder how many of these so called "financial experts" get sued ........... put your money here but "you may get back less than you put in" they seem to dodge the bullet on a regular basis

Good financial advice is to be had from self-made rich people*. Financial advisors are usually up to their little ears in debt. Mortgaged house, leased car, borrowed wife, gravity on subscription.

*people like Warren Buffett, who said one should start young - he began at the age of ten. Quite what he was doing before then, heaven knows! Wasting time, I imagine! When he was 13, fund manager Peter Schiff spent his bar mitzvah money investing in gold - quite the most nerdish thing I have ever heard!

 

[fisicx]

I’ve never understood this desire to chase after money. I’ve never been well off but have enough to pay the bills and indulge in my hobbies. Anything more than this seems superfluous.

 

[WaveJumper]

Lets hope we have enough left to pay the bills come October