Looking for Limited Company Insurance?
What do you need to consider when looking for insurance for your limited company?
There is no single, one-size-fits-all limited company insurance policy. Instead, insurers will usually help you to build or bundle your own bespoke policy together depending on your company’s requirements, for example: Employers’ Liability, Professional Indemnity, Public Liability, as well as Directors and Officers insurance and buildings, stock and contents cover.
Employers’ liability insurance
If you employ staff, no matter if they’re full time, part time, temporary, seasonal or work experience, you’re legally obliged to have employers’ liability insurance – in fact, for every day you trade with employees but no cover, you could be fined up to £2,500.
This limited company insurance policy can help you financially should a member of staff become injured or ill whilst at work. They could be facing lengthy rehabilitation and without the ability to work, you could be looking at a hefty pay out. This policy can help you pay the compensation, as well as both sets of legal fees too.
Public liability insurance
This is a popular policy (although not a legal requirement) public liability can cover you against third party claims, for example claims made by clients, customers, suppliers or even simply members of the public in the event of injury to themselves or damage to their property as a result of your business.
For example, if your shop signage were to fall and injure a passing shopper, they could make a claim. Or, if you had recently painted an item of furniture which then damaged someone’s clothing or a bag – public liability could cover cleaning costs as well as any compensation and legal fees too.
Directors and officers liability insurance
If you own a limited company then you’re highly likely to be on the board of directors too. D&O insurance provides financial protection against legal action resulting from decisions you’ve taken. These claims could be made directly against you, or your business for any decisions or actions taken that can be considered as wrongful acts such as:
Professional indemnity insurance
Professional indemnity insurance protects against associated costs in the event that advice given in a professional capacity results in legal action against you, for example advice or guidance given by a limited company which causes your client inconvenience or costs them time or money.
Professional indemnity insurance is particularly useful for professionals who have access to client documents, sensitive data or high-risk intelligence.
Limited Company Insurance – Useful FAQs
If you have employees then by law you are required to have employer’s liability insurance, which is often a crucial part of limited company insurance. However, for other types of cover which often make up limited company insurance, there is no legal obligation, it is purely optional cover to protect your business.
It’s best to weigh up the potential risks you could face, and ensure that they’re covered. If you’ve got stock you may want to protect that, if you own your building premises then you’ll want to make sure you can afford to have it rebuilt or repaired – think about what you’d like to protect and make a list.
Usually yes. Insurers or brokers will help you to decide what level of cover you need and help you to build a bespoke policy with one easy to manage premium and renewal date.
Yes. To be on the roads you’ll need to have the proper insurance. Whether that’s letting your current insurer know your vehicle will be used for business, or something a little more specialist, you’ll need to make sure you’ve got the correct level of protection.