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It is a legal obligation to take out an employer’s liability insurance policy, which covers the employer against claims by any employee for injury etc. However if the company only employs its owner and that person owns at least 50% of the shares then there is no obligation*.

Insurance that you may wish to take out include:

Public Liability Insurance - will indemnify you for your legal liability for injury or death to third parties and damage to third party property as a result of negligent, acts by you or your employees.

Professional Indemnity Insurance
- will protect you against the cost of defending claims where it is alleged that a client has suffered financial loss as a result of your error, omission or negligence.

Take a look at our Professional Insurance packages for more info.

*If you employed your spouse or relative or if you substituted another contractor or individual to undertake your contract work then you will need Employer's Liability Insurance. If you do any of the above and do not have a valid policy in place you will be liable to fines of £2,500 per day that the policy should have been in place. The cost of Employer's Liability Insurance is relatively small so if you do any of the above then ensure you take it out. See our Professional Insurance pages for more information.


This information is for general information only. We take no responsibility for any action taken or refrained from in consequence of its contents. Always seek our professional advice specific to your circumstances before acting.