PI insurance

[Paul Barton]

I am trying to purchase Professional Indemnity insurance at the moment. The cover would be for two of us - equal shareholders and directors of the company.

 

We are being told by one insurer that we would still need to purchase employer's liability insurance as well (which doubles the premium!) - is this correct? In our minds we have no employees so this doesn't make sense, but of course if it is a legal requirement for some reason we will buy it all.

 

Anyone have any experience of this?

[Paul Smith]

I think, and I may be wrong, but even though you both own the company you are both employed by the company. I presume you have Public liability?

 

Not sure if I have helped?

[daveindales]

Think deer man is right. If you are Limited, you will be employed by the company. I had to take out employers liability for the lad who works for me and also for myself, because I'm limited

[Paul Barton]

Ok, thanks. Looks like we'll go for the full whack then!

[TREE-SURGEON-ESSEX]

Well as with all insurances you dont get good value lol.

 

You should be able to get insured quiet cheap for two of you shop about.

 

Just make sure they cover for everything you do.

 

I would think they assume you both work for the company and employ each other ??

[Paul Barton]

Yes, we are shopping about.

 

It's kind of annoying that we'll be shelling out around £350 for EL insurance that we know we'll never use - as if one of us would sue the company that we own!!

 

I hate insurance!

[dillsue]

If you are running a ltd co you dont necessarily have to be employed by the company. You can take drawings as a director and you can take drawings as a shareholder. If you are not happy with paying for the EL then run the question by the HSE who are the enforcement authority for EL insurance.

 

Remember that everyone in the insurance industry stands to gain by selling you as much insurance as possible so they may not always be a truthful as you would like.

[Paul Barton]

Thanks dillsue. I rang the HSE; they agreed they are the enforcement authority for this but refused to advise for certain on whether it was necessary! Useless!

 

Might ring them again tomorrow and see if I get through to someone more helpful.

[dillsue]

Hi. Here's a link to the HSE guidance leaflet but I dont think it specifically covers your situation. http://www.hse.gov.uk/PUBNS/hse40.pdf

 

However, I think they are obliged to give you an answer on whether you need it or not. I would write/email them and ask for an answer. If they dont reply then keep a record of the correspondance and dont bother with the insurance- its going to be a pretty good defence for not having it if you can show you had asked for clarification but they didnt give it.

[Tony Croft aka hamadryad]

Hi. Here's a link to the HSE guidance leaflet but I dont think it specifically covers your situation. http://www.hse.gov.uk/PUBNS/hse40.pdf

 

However, I think they are obliged to give you an answer on whether you need it or not. I would write/email them and ask for an answer. If they dont reply then keep a record of the correspondance and dont bother with the insurance- its going to be a pretty good defence for not having it if you can show you had asked for clarification but they didnt give it.

 

that sounds like good advice to me!