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What business insurance do I need? (UK ltd. company)

Discussion in 'Business & Tax Advice' started by mickuk24, Feb 4, 2011.

  1. mickuk24

    mickuk24 Newbie

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    Hi guys,

    Just wanted to know if there's any manditory insurance that I need to buy for a limited company in the UK with only one director and working from home on affiliate marketing, also if you could give advice as to which insurance policies would be worth buying even if they are not manditory that would be perfect.

    Thanks for the help in advice.
     
  2. oxonbeef

    oxonbeef BANNED BANNED

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    There are no mandatory insurances you need for a UK Ltd company.
    However public liability insurance I feel is a must for any business.
    If anything happens that a victim can prove was part of your business,
    "say you walk out of Staples and drop a ream of paper on an old woman's toes"
    If that was for your business you're up doo doo Niagara and no paddle.
     
  3. MisterF

    MisterF Jr. VIP Jr. VIP Premium Member

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    Public Liabilities Insurance, if you have customers coming to your office / unit.

    Technically if you are working from home and just have 'normal' home insurance, they could void your insurance if you have a business evident, ie pallets of goods. I am a believer in whats not known can't do any harm personally ;)
     
  4. mickuk24

    mickuk24 Newbie

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    Hey guys,

    Thanks for the advice, well I don't have any goods since all my product is digital and I'll never have any customers coming to the house since it's all online, does this mean I can get away with not having any insurance or would you recommend I still buy it as a safety option.
     
  5. MisterF

    MisterF Jr. VIP Jr. VIP Premium Member

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    I'd not bother then personally, unless you have loads of servers, printers, duplicators there.
    If it's just a couple of machines and and printer/scanner then it's no different to home leisure equipment.
    Just double check your contents insurance for any valuables that need extra cover ( £5000 laptop as opposed to a £300 as an example )
     
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  6. mickuk24

    mickuk24 Newbie

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    Thanks guys,

    This forum is great, my laptop is less than £300, one last question if someone knows the answer to this it would save me alot of emails, I got a starter pack and was reading through it, talks about starting a company but it looks fairly old to me, it says I have to display a sign outside of my company headquarters with my business name and print my company details on any stationary and letterheads, since I'm working from home and its all digital so no sending of letters is this just not applicable for me?

    I appreciate the help, guess I'm a little anxious about making a mistake
     
  7. Markbh

    Markbh Regular Member

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    If you ever plan to ivnite anyone to come over, you could think of a sign. But it could be very inconspicuous, 2x3 inches. Stationary might still come handy just as business cards, as every now and then you may be asked to fax sth or to meet someone.

    Public liability is a very cheap type of insurance - think of £200 per liability of 2 million. You only need it if the services you offer can cause some kind of damage or loss to the customer. A good thing to have!
     
  8. mickuk24

    mickuk24 Newbie

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    I keep getting conflicting advice from all sources lol

    One says I need public liability and employers liability, the other says "the only compulsory insurance is employer's liability insurance - if you are trading as a company then the directors and co secretary are considered to be employees." and then the other says "Your company will be exempted from employer?s liability insurance if it is a private limited company. If you employ only close family members as your staff then also you are not required to purchase an employer?s liability scheme, though it is still recommended."

    Not sure where I go from here, except maybe phoning up business link to get some clarification.
     
  9. pmj1

    pmj1 Newbie

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    If you're a UK Ltd. Company then you are limited by the value of your shares - so assuming you setup your Ltd. with one £1 share that's your liability "value" - if you get sued (you being the Ltd. Company rather than you individually) then fold the Company accordingly - that's the main benefit of the additional accountancy fees / running costs etc. of a Ltd. Company rather than being just a sole trader where they can personally sue & literally "take the shirt off your back." You don't need employers liability insurance if you're the only employee of the Company - oh & of couse the Company Secretary are the only employees.
    Also , let me just add , that Company plaque you are supposed to display - having been through multiple HM / VAT audits to date , nobody has ever pulled me up that the plaque is not displayed. For digital products you're dealing with, I wouldn't consider paying any insurance premium at all. But other than the risk of being sued , bearing in mind the additional costs involved what's making you consider even bothering with the costs associated with setting up a Ltd. Company in the 1st place - you're not going to (I assume) have clients visiting your premises for example.
     
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    Last edited: Feb 7, 2011
  10. MisterF

    MisterF Jr. VIP Jr. VIP Premium Member

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    Just to confuse you even more...:popworm:
    You mentioned your product/service is digital. I'm guessing you have the usual disclaimer if you are making software, as to not being liable for losses incurred etc?

    Just a thought.

    I'd say speak to Business Link though
     
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  11. oxonbeef

    oxonbeef BANNED BANNED

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    I hope I don't have to scan this lot it's direct from Business Link.

    An Introduction to Setting up an Online Store
    http://businesslinkinlondon.cobwebinfo.com/docurl/view/ud2uML8BB_*_1EE_**_AGt_*_N3PYSrR_**_Q3sen0oek6Ey_*_tuq0%3D

    An Introduction to the Legal Issues of Selling by Mail Order
    http://businesslinkinlondon.cobwebinfo.com/docurl/view/DUU9VQqGodyzcEQ9_**_q4L9FfMmm_**_5rBHbilmpUydetW0%3D

    An Introduction to Regulations Affecting E-commerce Businesses
    http://businesslinkinlondon.cobwebinfo.com/docurl/view/SLdaYYFscIEKCbQOwuLvFK4tvtAfWnjV8onlaxCei_*_Q%3D

    A Guide to Online Payment Facilities
    http://businesslinkinlondon.cobwebinfo.com/docurl/view/LwKP0BSNTsBCOsoK2JpoblCMdJOjjfyBVV7j0JkQOAE%3D

    A Guide to the Consumer Protection (Distance Selling) Regulations 2000
    http://businesslinkinlondon.cobwebinfo.com/docurl/view/l0NzzfEx0ihY9WznKdSrUddcF_*_JMtgrfBgX5fI0HBWA%3D
     
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  12. mickuk24

    mickuk24 Newbie

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    Thanks guys,

    I think I have it under control now, I am still very inexperienced with business but I'm learning more which is really my motto, learn by doing!

    I will certainly read over the links and get in touch with business link, thanks for telling me about the sign, guess it's not such a big deal after all.

    It's nice to know I have some place to get answers from, are all posters UK based? If so I'd like to exchange emails with you guys and get a "brain trust" set up, I have pretty decent skills with SEO and sales letters, I'm also decent at creating good offers, one of my sites converted close to 3% due to the offer.

    Thanks again for all the help and advice.
     
  13. moggwai

    moggwai Junior Member

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    If u are a ltd company i dont think u can have directors.. !!! A ltd company is basically a one man show. Directors meaning u are responsible for everything lock stock and barrel. Above comment about the shirt off your back comes to mind.

    Insurance u do NOT need any... For what ??? Ive had my own business and unless u have people "ON site" meaning printer or ream of paper to fall on someones foot u dont need it..
    Household insurance will NOT cover u .. if u have a home office for work study thats fine.. if u operate a home business u need permits from the council , might possibly have to pay rates and an extra lump sum to get insurance. Of which u will need to look into depending on how many sq feet employess etc.

    Think i have covered it all..
    Moggwai
     
  14. csfuk

    csfuk Regular Member

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    Chill out,
    you dont need insurance to run your business.
    It is another question if you want to waist money on insurance doing affiliate marketing. If you were a builder then that is different story.

    Regards
     
  15. teeniegenie

    teeniegenie Supreme Member

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    Consider umbrella liability insurance if they have something like that in the UK (I'm sure they do).