As part of setting up a limited company, you will be required to have various business insurances in place. We at Banner & Associates understand that getting the correct insurance for your Company and activities can be a daunting prospect, especially with so many providers and different types of insurance products on offer.
We can provide you with the support you deserve by explaining the various insurances and through our partnership with the leading provider of contractor insurance products, QDOS Consulting, equipping you with the knowledge to make informed decisions.
Professional Indemnity Insurance
Professional Indemnity Insurance (PII) will cover you in the event of an alleged breach of professional duty, and is often stipulated in contracts. Professional Indemnity Insurance will react in circumstances where an error or omission in your services causes, or is alleged to have caused, a third party a financial loss. The policy covers both defence costs and any liability found owing in the event of a claim up to the limit of indemnity.
As with solicitors and accountants, contractors provide professional advice and services which are relied on by their clients. Even where care and skill is exercised, there is still the potential for you to make a mistake that causes financial loss to a client or for a client to allege that you have made a mistake even if you have not. Whilst such disputes are rare, when they occur they can be costly.
Public and Employers Liability Insurance
Public and Employers Liability Insurance covers the legal liability of a business in the event they are liable for injury or illness to their employees or third parties, as well as property damage that may be caused in the provision of business activities. Public and Employers Liability Insurance are also often stipulated in contracts.
Public Liability Insurance will react in circumstances where a third party (an individual person, or a corporate entity) brings legal action against you in respect of physical injury, or damage to property, caused by you in the course of your business. The policy is designed to defend your case and, if necessary, pay the damages owed.
Employers Liability Insurance will react in circumstances where an employee seeks to bring a claim against you for personal injury or accidental death sustained as a result of their employment with you. This policy will defend such a claim and pay the damages for which you are liable.
Employers Liability Insurance is compulsory for any business that has one or more employees, whether they are permanent, part time, or temporary. Employers Liability is not a legal requirement if you are a ‘Ltd’ Company, you are the only employee and you own at least 50% of the issued share capital of the company.
Tax Enquiry Insurance
In recent years HM Revenue & Customs (HMRC) have been using various methods, including technology and information from a variety of organisations to increase the volume of enquiries and investigations affairs. This has very often been into businesses and private individuals that have no reason to expect and enquiry. Unfortunately this can prove costly to resolve.
It is however possible to take out an insurance policy to meet our professional fees incurred in putting together an expert defence should you be selected for an enquiry.
IR35 insurance – Tax Liability Cover (TLC35)
Tax Liability Cover is a comprehensive insurance policy designed with the threat of IR35 in mind. TLC35 covers the representation costs of defending your case in the event of a variety of HMRC enquiries up to your selected level of indemnity (minimum of £50K). Additionally, if you are subject to an IR35 enquiry and are subsequently found to be ‘caught’ by the legislation, the policy will cover the tax, NI, interest and penalties for which you are liable (including in relation to travel and subsistence expenses), up to your selected level of indemnity (from £25K to 100k). This policy also includes unlimited IR35 contract assessments.
This insurance is offered on a ‘claims made’ basis. This means that the policy will cover claims which arise and are notified to our claims department whilst cover is in place, regardless of the period of time into which HMRC are enquiring.
Banner & Associates provides a consistently high and professional level of service. The team are always courteous and friendly.
Paul BriggsFinance Director, Arkady Feed (U.K.) Ltd
The staff at Banner & Associates demonstrate outstanding professionalism, patience and courteousness. Whilst I agree that I could be difficult and late sometimes, matters are still dealt with proficiently, brilliant staff.
Banner & Associates provide excellent service and technical knowledge. The best testament to this is the fact that I have recommended a number of companies to them and will continue to do so.