What Insurance Does A Limited Company Need?

When you are a contractor it is incredibly important that you protect yourself as a limited company with the right insurance.

As part of your contract that you agree with agencies or clients you are likely to need valid insurance in place. It might not have been something that you have put a lot of thought into but as the director of your own limited business it is important that you check your contractual agreement so that you meet the demands of each individual project.

Wondering what types of insurance policy you need for your limited company? Read on.

Employer’s Liability Insurance

Employer’s liability insurance isn’t necessary if you are a sole director and don’t have any employee’s. However, if you do employ anyone, whether it be on a casual basis or not, you are legally obligated to have this insurance in place. Failure to do so could land you a hefty fine if you get caught out. 

Employer’s liability insurance covers your employers in the event that your employee has an accident or gets ill whilst at work. Of course, you hope that it will never happen but no matter how many health and safety precautions you put in place it can still happen so it’s best to be protected.

Public Liability Insurance

If your project involves some aspect of working in the general public then you will need to make sure you have public liability insurance in place. Public liability insurance will protect you against claims made by members of the public for accidental injury or damage made to their property because of works that you are carrying out. One common claim made by the public is for slips and trips.

Regardless if you have your own premises that the general public visit or it’s at your clients premises you can still be held liable. 

Professional Indemnity Insurance

Also referred to as PI insurance, professional indemnity insurance Llandudno covers the expense of claims made against your company by a client due to negligence, loss of documents or data, breach of contract, unintentional breach of copyright or confidentiality. 

Whilst professional indemnity insurance isn’t a requirement, those who work with client data, design or give advice should take out this cover.

As an add on to PI insurance you may also want to think about run-off cover which covers you even after your contract has ended. Even if you have the right professional indemnity insurance in place, you may still find yourself landed with a claim years down the line, so run-off cover is essential if you want to stay protected.