Limited Company Insurance

Limited Company Insurance Explained

As an owner of a limited company, there are chances that you might experience some unexpected misfortunes. That is why insurance companies will offer you different types of coverage which can help your company survive in the event that disasters will come. The insurance that you need for your business is more or less the same with the insurance that is required for your car. Some of these insurance policies are legal requirements while others will depend on the type of your business. While there are other types of coverage that are needed in the contract with a client or supplier. Here are some of the most common limited company insurance.

Public Liability Insurance

The public liability insurance can provide protection to your limited company in the event that you or your employees have caused injuries or damages to property while working in your business. For instance, an architect from your company abandoned his surveying equipment which caused an accident to a passer-by who tripped over it. As a result, your company is being sued for the damages.

If claims are filed, then public liability insurance can cover the costs for legal expenses, damages, as well as the loss of income. However, PL insurance is actually not mandatory.

Where can I get Limited Company Insurance?

We recommend using Simply Business they are rated 4.7/5 on Feefo and have over 800,000 insurance policies in the UK. They compare many different providers so you can find the insurance cover that is right for your limited company.

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Employers’ Liability Insurance

This policy will cover your employees who suffered from injuries or worse have died while working in your company. The Employers’ Liability insurance is mandatory to all types of businesses, however, there are some exceptions. You are exempted if you are self-employed and you are the only employee in your company, or your employees are your relatives. Limited companies, who only has one employee who shares half of the capital are also exempted. If your business does not have an employers’ liability insurance, then you’ll be facing heavy fines. Employers liability insurance can cover the costs of legal fees, damages, as well as for compensation.

Professional Indemnity Insurance

If your limited company offers advice, designs, or services, then you should get professional indemnity insurance. This can protect your company in the event that your clients will file a claim for negligence or damages. Most often this type of insurance might be a requirement for your contract with your clients.

Finding the Best Limited Company Insurance

What are other types of insurance required by a limited company?

Aside from public liability insurance, employers’ liability insurance, and professional indemnity insurance, there are other types of insurance policies that are commonly bought by limited company owners. This includes tax investigation insurance, product liability coverage, income protection insurance, directors and officers insurance, relevant life cover, key person insurance, and others.

Tax Investigation Insurance

This type of insurance can cover for the expenses of professional representation in case your company will be examined for your tax payments. Sometimes it can even pay for your unpaid tax depending on your coverage. This type of policy is very affordable and extremely valuable most especially for limited company owners who are always facing financial difficulties.

Product Liability Coverage

If you are a manufacturer of a certain product and it caused someone to suffer injuries or something to get damaged, then product liability insurance can cover for the claims.

Income Protection Insurance

This type of coverage is designed for contractors who are working in a limited company. What if you can’t work due to some illness or accident? With income protection insurance, you can always guarantee that your finances are completely protected. Depending on the type of policy that you choose, this can provide you long term or short-term income.

Directors and Officers Insurance

The Directors and Officers Insurance also referred as D&O, can protect you in case someone will sue you personally because of the decision that you’ve made or the action that you’ve taken based on your duties. This policy can pay for legal costs as well as for the compensation payments.

Relevant Life Cover

This type of insurance, also known as death-in-service insurance, is offered by companies to their employees. Regardless of what the employee’s position is, his employer can set up a Relevant Life Cover for him. In the event that the employee died or was diagnosed with a terminal illness, the employer will pay a tax-free lump sum amount to the employee’s family.

Key Person Insurance

Key person insurance can protect your business in the event that one of the directors or other key members of the company just died or got injured. It can cover the loss of revenue while you are still looking for someone to replace his position.

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