Small Business Insurance Discussion Area

dacouch

Krissia23 wrote: »

Hi, I'm wondering if anyone could help or has any advice...

I am in the process of setting up a website that will sell ebook Documents...

I have been advised by my solicitor to go the way of becoming a 'Private Limited Company'. But in doing so it has brought a couple of issues to my attention...

01) Since the Company itself becomes the 'Employer', BUT since I will wish to take a wage from the sites earnings from what I have read on other adive sites that means that I essentially become the 'sole Employee' rather than the Employer, that being the case do I actually need some sort of 'Insurance' to cover myself and if so what type?
Or as the 'Director' do I simply count as the 'Employer' and am able to pay myself without needing any sort of Employee Insurance?

02) At some stage I would like to hire freelance employees who work from their homes or where-ever, so again do I need any type of insurance at all considering that the only interaction or any sort I will have with these people & the products they create is via email?

Sincerely & Thank you in advance for any feedback or advice.

Krissi

Technically if the company is just you as a director or you and say your accountant also as director you do not need Employers Liability Insurance or if you just employ family member then you are not obliged to have E/L cover although I would recommend.

"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:*
■
most public organisations including government departments and agencies,
local authorities, police authorities and nationalised industries;
■ health service bodies, including National Health Service trusts, health
authorities, primary care trusts and Scottish health boards;
■ some other organisations which are financed through public funds, such as
passenger transport executives and magistrates’ courts committees;
* Further exemptions from the need to have employers’ liability insurance are listed at
section 3(1)(a) and section 3(1)(b) of the Employers’ Liability (Compulsory Insurance) Act
1969, and Schedule 2 to the 1998 Regulations."

http://www.hse.gov.uk/pubns/hse40.pdf

With regard to the freelancers, in some situations they would be regarded as Employees (It's not the same criteria HMRC use) and could possibly sue you for injuries etc. I would recommend you seek the advice of a proper commercial broker (Not Swinton) if you engage Freelancers

Krissia23

Dear Dacouch

Thank you sooo very much for this insight & advice, it has been Very VERY Helpful Dacouch, this is all very new to me and I don't actually even have an accountant yet, so I have very much been dropped in at the deep end & am now slowly flailing my way through all these new problem area's. :-s :-)

May I ask if there are any Commercial Brokers that you might be able to recommend in regards to the Freelance Employee issue?

If not, Thank So much for all the Advice you have already provided, it has been a Wonderful Help. :):)

Sincerely

Krissi

dacouch

You should be able to find one from here http://www.biba.org.uk/CustomerHome.aspx

Alternatively ask other business owners in your line of business for a recommendation or look in your trade magazines for adverts

rhapsody_princess

I wonder if anyone can help me?

I have been searching everywhere trying to find an insurer who will provide liability insurance for a home sunbed/gym equipment hire business. So far i have come across some specialist borokers who offer ins to salons but not home hire businesses due to the lack of supervisory over the sunbed.

Any ideas where i might find some help with this?

TIA

doinkthemonkee

I work as a support worker for my job. But I make jewellery as a hobby. I'm looking at doing a few craft fairs/markets & have been told I need to get insurance. But not what, how much or where from .... help?

dacouch

doinkthemonkee wrote: »

I work as a support worker for my job. But I make jewellery as a hobby. I'm looking at doing a few craft fairs/markets & have been told I need to get insurance. But not what, how much or where from .... help?

Market Traders Associations offer it cheap

https://www.google.co.uk/#bav=on.2,or.r_cp.r_qf.&fp=bde9636d05f52614&q=market+traders+association

You will need Public and Product Liability

jim85

Hi,

Myself and a business friend of mine have recently set up a Limited Liability Partnership, we will be doing Computer Aided Design (CAD) drawing work, at times measured surveys on sites and warehouses etc. We will initially work together only and not employ anybody initially for the next 12 months or so (but you never know). We will undertake contracts between £500-5000, turning over upto £25k annually over the next 12 months or so as we will be doing part time working alongside our current full time jobs.

Would someone advice the levels of cover for Professional Indemnity, Employers Liability and Public Liability Insurance cover.

Our initial feel was:

Professional Indemnity - £500k (a bit concerned this is not enough?)
Employers Liability - £5m
Public Liability Insurance -5m

£312 is the current quote from Hiscox with the above particulars.

Many thanks in advance :-),

James

dacouch

PL can be as low as £1m although many companies will require subcontractors to have a minimum level of £5m.

E/L is typically £10m as standard.

PI covers mistakes in your professional capacity, a company will typically take out enough cover to pay for legal fees and compensations should it go wrong.

The premium you've been quoted by one of the best Insurers in the market is a good price. You may as well take the £500k PI as it's probably more than you need and may fit in with the minimum required by certain companies you may approach fr work

Joulesetc

Hi,

I currently have public liability insurance as I sell a markets and craft fairs gifts and crafts. I am about to lease a shop and need internal and contents insurance.?

If anyone knows of a helpful and reasonable provider please let me know... Thanks.....

dacouch

Joulesetc wrote: »

Hi,

I currently have public liability insurance as I sell a markets and craft fairs gifts and crafts. I am about to lease a shop and need internal and contents insurance.?

If anyone knows of a helpful and reasonable provider please let me know... Thanks.....

Go and (Personally) see a local broker, avoid Swintons. This keeps the money locally and you can pop around to see them if there are any problems.

In the future when you understand what cover you need etc you could shop around on the internet for cheaper deals if that's your thing.

Ask them to explain what cover you need and what it covers.

Shop Insurance is relatively cheap and normally comes in a package eg covers your stock, contents, money, glass, liabilities and business interruption (Your lost profit / fixed costs if you have a claim).

The broker should be knowledgeable and be able to explain everything so you understand it. If you're not happy go to another broker.

If any of your local brokers are "Commercial Specialists" they should be better