Public liability or indemnity???

[Koochiemama]

I am starting a cleaning company which will employ self employed people on an ad hoc basis, which insurance do I need? And what's the real difference? Do I need both?

Thank you

Mandy

 

[Franny7]

Yes, it's vital to cover you in the event of theft, damage or other loss of property such as keys etc. Insurance for cleaning businesses is not that expensive and will cost around £60 per month. It is vital that you ensure that you hold a valid insurance certificate along with the full insurance agreement. The insurance that you need is known as public liability insurance. Do PM me if you need extra help.

 

[Homer J Simpson]

Public liability is indemnity insurance (at least I think it is). But you need to look at employers liability too (a legal requirement if employing anyone).

 

[philipweson]

I am starting a cleaning company which will employ self employed people on an ad hoc basis, which insurance do I need? And what's the real difference? Do I need both?

Thank you

Mandy

As for the cleaning, you need to know if your cleaning indoors/out doors, commercial basis or for private customers. My friend was cleaning indoors and was cleaning furniture and carpets, so it was important that he had treatment cover on the policy so when you get insurance make sure you ask if this aspect is on the policy.

As for your helpers/workers, are they employed directly by you, if so you will need employer’s liability, if they are classed as subcontractors then it will depend if they are bona fide subcontractors or labour only contractors. If they are labour only sub contractors then you will need employer’s liability insurance. If your helpers/workers are bona fide sub contractors then your contractors will need their own public liability insurance and you will need to check that they have got the correct insurance, in the event of a claim and they have no insurance then you may be vicariously liability for their mistakes.

I have tried to remember everything I was told, however like I say, Coversure in Middlesbrough were very good and went through everything in reference to the insurance and I suggest you speak with them to clarify all aspects if you google them you should be able to find them but I think their number was (01642) 913161 but check the number as I’m not 100% sure it’s the correct number, all though I imagine other brokers will or should give you the same advice but these guys were pretty good and very helpful and didn’t mind spending the time on giving advice on this.

 

[Newchodge]

You cannot employ self employed people. Either you will employ them or they will be self employed sub-contractors. You really need to get your head around the difference, because getting it wrong can lad to expensive problems with HMRC.

 

[philipweson]

Public liability is indemnity insurance (at least I think it is). But you need to look at employers liability too (a legal requirement if employing anyone).

Public liability is different from Indemnity insurance. Proffesion Indemnity insurance is cover for the advice given in a proffesional capacity, you usually find that solicitors or other proffesionals will have Indemnity insurance on the information that they give as a proffesional.
Public liability is cover for damages that may happen due to your negligence such as a tradesman that may brake something in the line of his business or if an injury happens due to negligent work that has been done, such as a builder that builds a wall that falls down due to his negligent work and injurs someone. in short liability is for negligent work and indemnity is for negligent advice.

 

[philipweson]

You cannot employ self employed people. Either you will employ them or they will be self employed sub-contractors. You really need to get your head around the difference, because getting it wrong can lad to expensive problems with HMRC.

It does take a lot to get your head around it and quite easy to get wrong as there are two types of contractors, a bona-fide subcontractor & labour only subcontractor.
A bona-fide subcontractor will work under his own direction use his own tools and materials and he would be expected to have his own insurance.

A labour only subcontractor would only supply his labour, they will use your tools a materials and will work under your supervision and direction, you would require employers liability if you have a labour only subcontractor.

 

[Newchodge]

It does take a lot to get your head around it and quite easy to get wrong as there are two types of contractors, a bona-fide subcontractor & labour only subcontractor.
A bona-fide subcontractor will work under his own direction use his own tools and materials and he would be expected to have his own insurance.

A labour only subcontractor would only supply his labour, they will use your tools a materials and will work under your supervision and direction, you would require employers liability if you have a labour only subcontractor.

This definition of a labour only subcontractor is exactly the problem. How is this person not an employee? and if they are an employee HMRC will want some money from the employer.

 

[philipweson]

This definition of a labour only subcontractor is exactly the problem. How is this person not an employee? and if they are an employee HMRC will want some money from the employer.

The question was raised about insurance, if you have a labour only subcontractor working for you then you will need employers liability to cover that person. They are not an employee they are a labour only subcontractor. if you are paying someone in their hand and calling them a contractor that is your choice but you will still need to have employers liability.

 

[WFChris]

What philipweson says is correct regarding Labour Only Subcontractors (LOSC's).

I have had this conversation far too many times with prospective clients who have been told (by a mate or their accountant in some instances) that they do not need to arrange insurance for them as they are self employed. This is wrong.

An employee (as far as insurance is concerned is anyone you have working for you in the following capacity:- Direct employee, Labour only subcontractor, volunteer, student on work experience, a person loaned to you by another company. If you have any of these then you are required to have Employers Liability insurance.

 

[Paul Baldwin]

Some great advice on here. A lot of cleaning agencies operate on this basis and insurance solutions are available to accommodate this scenario. Speak to a broker, there are plenty of us about

 

[MatthewRJones]

Anyone recommend the best provider for professional indemnity?

 

[WFChris]

Anyone recommend the best provider for professional indemnity?

I would like to say that we are pretty good.

 

[MatthewRJones]

Thanks for this Chris I will get a quote via your website.

 

[WFChris]

If the website does not give you the answers you need we have many more 'offline' providers in addition to the online offering.

 

[philipweson]

It all depends on what you want from the policy and what profession your in, my advice to you would be to speak to a broker and explain everything to them and depending on your profession would depend on who would be the best.

Depending on your profession you may want liability also and there are some policies that will give pretty good cover as a combined policy, .