Limited company insurance

Who needs limited company insurance?

It’s great for, well… any limited company. Whether you’re on the local high street or a small business operating out of your home office.

You’ve chosen to be a limited company to reduce your risk. Limited company insurance works the same way.

It protects you when the worst happens. So, you don’t have to worry about your business closing its doors if you’re hit with a claim.

Beyond that, it takes the stress away from a mistake happening. Because, let’s face it, they will happen at some point. You’ll know where to go and what to do, safe in the knowledge that your legal fees and any compensation are covered.

What insurance does a limited company need?

It depends on the nature of your business. Different limited companies operate in different ways, so require different kinds of insurance.

We’ll start with an easy one. If you have any employees, you need employers’ liability insurance by law. The government have put together a handy guide about this that’s worth checking out.

If you have a physical location that customers, clients, or suppliers visit, you’ll also want to have ltd company public liability insurance. This covers you if any of these visitors are hurt or their property is damaged. And it was your business’ fault.

Professional indemnity insurance is also going to be a big one for many limited companies. It defends you against claims that you haven’t done your job properly. And covers the legal costs of defending you and compensating them. Essential if you have paying clients.

Do I need professional indemnity insurance as a limited company?

If you have paying clients, then professional indemnity insurance is great to have.

Nobody’s perfect. Mistakes happen. You’ve heard all the clichés. But it’s true. Every business makes a mistake at some point. And when that happens, it can lead to a damaging claim.

Sorting out the problems that can come out of a mistake takes time and money. It can affect your reputation too. Which can make it more difficult getting new clients in the future.

Let’s say you give your client some advice that ends up losing them money. They could accuse you of negligence and sue you for lost earnings.

Professional indemnity insurance (PI) steps in at this point. It pays for specialist lawyers to defend you and covers any compensation awarded.

Do I need public liability insurance for my ltd company?

If you meet with people when you're out and about or have clients at your workplace, public liability insurance for limited companies is a good investment.

A client could trip over a cable in your office and break their wrist. Or you spill coffee over their laptop when you're having a meeting in a coffee shop. In either case, public liability insurance can help you out.

It pays for a specialist solicitor to defend you if you need them and covers any compensation awarded. Helpful if you're a bit clumsy or accident-prone.

Do I need employers’ liability insurance for a limited company?

If you have staff, then legally, you have to have employers' liability insurance. The Health and Safety Executive enforce the law, and they'll fine you for every day you don't have a valid policy.

There are exceptions to the rule (when isn't there?). Like if you're the director of a limited company and you're the only employee. But most employers need it.

Employers' liability insurance (EL) is there if a staff member has an accident or is made ill through work, and it's the business's fault. If they sue for damages, EL pays for a solicitor to defend you, and it'll pay any compensation due.

How much does limited company insurance cost?

How much you’ll pay for limited company insurance depends on a few things.

First, the nature of your business will change how much you’ll pay. Different industries and sectors will be perceived as more or less risky by insurers. So, some will pay more than others.

Second, what kind of insurance you need will either raise or lower your price. If you have a physical location, or work at a client’s premises, you should have limited company public liability insurance, for example. The same is true if you have employees, which means you’ll need employers’ liability insurance.

Or you want to add something else on, like cyber insurance, to protect your digital assets.

The size of your business will affect the price too. Larger businesses should generally expect to pay more, as their risk is higher.

If you do any business outside the UK, your insurance costs will go up too. So, bear that in mind when you’re getting a quote.

Why should I buy my insurance from you?

The main reason is: we’re professional insurance experts. We can help you find exactly what you need to protect your business. Even if you’re not sure what that is.

We’re also painfully aware of how confusing and time-consuming getting business insurance can be. So, we’ve cut out all the jargon to make sure you can get a policy as quickly and easily as possible.

We’ve also scrapped the call centre and phone menu approach. Because we know people like to be treated like a person, not a number. So, when you call us, you’ll get through to one of our friendly advisors.

You’ll also get a few little benefits. Like an ‘I’m insured’ badge for your website. And money each time you successfully refer someone to us.

Still on the fence? Why not have a read of a few of our customer reviews? There are thousands of them, and they’ll give you a better idea of what you can expect.