contracts and public liability?

toasterman

Hi,
I'm starting a business as part of a college course within the next 12 months, and I need to investigate both public liability insurance (which I'm told all businesses should have some degree of), and a lawyer to draw up the contracts I'll be agreeing on with my customers.


For the public liability insurance, I tried a website called simplybusiness.co.uk but it asks me all sorts of questions about what cover I actually need, and I'm not sure of the answers really.
It's recommended by Business Link.

After filling out the answers, guessing at the figures, I got a message to say they didn't have anything that fitted my requirements and they would look at it manually, followed by an email saying they had done so and couldn't find anything for me.
Not the most helpful response I've ever had.


For the contract drawing up, I'm making notes on what my product actually is, what the terms are I'd like, and then I need to contact some lawyers (have got a few names of local law firms) to draw this up.


Question I have regarding both is what this is likely to cost?
Any idea what sort of figure I should be expecting for a brand new business, for either service?
I know this is presumably dependent on many different factors, but is it likely to be hundreds? Thousands?


Thanks

P.S. Tiny bit of background: The business is a web-based directory of sorts, so doesn't sell a physical product, and it's just a one-man band at the current time. My paying customers will be other businesses. There are other aspects to it other than the directory, but all service-based.

sprouter

It sounds like Professional Indemnity insurance is more suited to your requirements. You really need to speak to a broker who'll explain it all to you and obtain quotations. Hiscox do a PI policy with PL extension which you can obtain directly via their website but you really do need to speak to a broker.

toasterman

Thanks sprouter.

I don't actually need to buy it at this point, but before I start the course, I have to produce a business plan of sorts, which includes theoretical costs of advertising, and other business expenditure including insurance and charges for lawyers to assist me with contracts and whatnot.

PlutoinCapricorn

Not all businesses need public liability insurance. Obviously, self employed window cleaners and electricians need it as they might cause one of their customers to have an accident. People who make food to sell would need it, someone who does tutoring work from home might need it in case one of the pupils tripped on a mat and hurt himself.

A sole trader who works at home as a researcher would probably not need it if they visit their clients rather than receiving them at home. Their work does not involve any contact with members of the public.

People such as solicitors and financial advisers usually need professional indemnity insurance in case their clients lose money as a result of bad advice.

dacouch

If you ring a broker up for a quote don't tell them you are doing it for a project as a lot will not go to the bother of doing it as it can take them a long time so costs them money. They get this a lot so some get fed up with it.

Do some research on your "Trade" and then ring them up, the questions they ask you may help with your understanding of the trade you are doing a project on

Jo_F

I have both public and product liability insurance, and I got it through a guy called Ian Wallace, its specifically craft worker insurance, but he is a really friendly and helpful guy and he may be able to help you with it, http://www.craftinsurance.co.uk/ if you give him a ring, he may be able to help you, or point you to where you should/could be looking.

Horace

An average cost for a lawyer to draw up a contract (depending on the law firm used) is £195 per hour and working solidly then it may take 2 hours depending on the clauses you want to be included e.g. cancellation fees, etc.

The business plan doesnt need exact figures just an estimation of cost really.

I have professional indemnity insurance with Hiscox and it costs me £11.81 per month (£141.72 pa)

I hope this helps.

Gavf123

professional indemity is what you will need.
I would speak to towergate or a broker which is part of the jelf group. They are a large broker good connections. Google or Yell it for your nearest branch.
Stay with the larger brokers for better prices. If a large broker and the local family broker get quotes both from the same insurer you will see the larger brokers price is better and it will be the same policy being sold. Sad but true.

Horace

I used a broker called Blue Fin to get my Hiscox insurance and they were fab. I also have public liability insurance which I got from More Than Business.

Gavf123

Blue Fin are also a large broker and would recommend them.