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• # 54327
• Wed 09 Feb 2011 03:35 PM

Dose anyone know what insurance cover is needed when you are about to set up in business? I found the website www.simplybusiness.co.uk quit useful but it was asking questions about all sorts of cover, what exactly do I need?  

• Della Morris

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• # 54328
• Wed 09 Feb 2011 03:49 PM

Hi Dellamo
You will definitely need Professional Indemnity Insurance. There is information about an insurance provider on ICB website and you could also try Business Link.
Pam

• Pamela keen
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• # 54329
• Wed 09 Feb 2011 03:59 PM

Thanks for that Pam, but do I just need imdemnity insurance because thats what I'm not clear about when filling in the quote application,it asks about employers liability  and all sorts!



Kind Regards


Della Morris
AICB.CB.Cert.PMDip  

• Della Morris

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• # 54332
• Wed 09 Feb 2011 04:19 PM

I have used Simply Business for the past two years and will have no problem using them again in two days time when I renew.

They get the best premiums - £160 first year, £126 second year and £95 for my next renewal. Obviously no claims!

I charge my insurance renewal on to clients - 2% of the invoice. A small price for them to pay and an added selling point that they are covered.

With Simply Business you can also put a link on your web site to the insurance certificate so clients (and prospective clients) can check your insurance is up to date.

Geoff
MICB, CB Dip, PM Dip
www.accountslegal.co.uk

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• # 54336
• Wed 09 Feb 2011 05:12 PM

Thanks every one for your advice, but I'm afraid I'm going to have to keep asking questions! The guy at Simply business said to find out if need public liability cover, any one got an answer for me please?

Della

 

• Della Morris

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• # 54337
• Wed 09 Feb 2011 06:28 PM

I also have an Office Policy that includes Employers' Liability ( I have employees)
Public & Products Liability - If you are working at a clients premises probably a good cover to have.
Commercial Legal Protection

It depends how far you want to go with it. You can get cover for loss of computer data.
 i.e. the cost of having to re-enter it.
If you work from home do you need to inform your contents insurer? Are you covered for computer equipment?

• Pamela keen
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• # 54394
• Fri 11 Feb 2011 05:00 PM

Hi everyone

I found out with all of your help what type of insurance I need but at what level, I assumed the lowest as I don't have any clients yet , nor do I know how many I will get. Can anyone help?



Della

 

• Della Morris

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• # 54395
• Fri 11 Feb 2011 05:12 PM

It is difficult because the insurance is not just covering your fees but also what the potential claim might be from a client.

So you may have a client who you charge fees of say £10,000 but their claim against you may be £10,000 plus any consequential loss including the cost of putting the work right and any result of them having acted upon your advice and suffering a loss.

I went straight for £250,000 as I felt that would be adequate - on an average year (and this financial year is well below average) that is ten times earnings.

When I came to renew yesterday I did consider coming down to £100,000. The danger in dropping is that if you pick up a decent job or two and forget to increase your cover you might find yourself under insured.

And insurers wont pay to the limit in such circumstances, they will not pay at all.

Of course the big hope is that you never have to claim.

Geoff Smith
accountsLEGAL
www.accountslegal.co.uk

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