business liability

[dombanks]

i'm looking into business liability for one reason or another. it would be for a scientific consultancy business. i dont really want to go into the specifics of it as its a bit too complicated other than i will be working for a biotec as a consultant for 8 months.

 

ive been told that if the business was a simple sole trader type of business then it would need some sort of liability insurance to cover advice and work i do. i was then told that if i was a limited company i the company rather than myself would be liable.

 

so it seems like it would be better to set up limited company rather than as a sole trader. but most of the advice i have been given is that at this point in time this might be a bit overkill and could possibly generate a bit more fuss (needing accountants etc) than operating a as sole trader.

 

im not really sure in terms of liability what is the best approach. it does seem that the sole trader option is an easier route for me at the moment other than the fact i would be personally responsible so if i was sued for my advice everything i have would be up for grabs.

 

maybe ive been advised wrong. i trust both parties to give decent advice its not just some one down the pub but they are diametrically opposed to each other. so any advice either way while im having a bit of a read about on the subject?

[geoffd]

I run my business (software development) through a limited company not as a sole trader, but I do have professional indemnity insurance, as well as employers liability cover which is part of the business contents policy.  I'm not sure that I personally would not be liable if something went wrong, so it adds some peace of mind.

 

Neither is hugely expensive.  I suggest you discuss with some business insurance brokers to understand the risks and costs.

 

Geoff

[Andy Banks]

Are you consulting through an agency, do you have an accountant - they may have the answer. I use these: http://dallaskirkland.co.uk/

[RoboS]

If you are giving advise than i suggest you look at professional indemnity, we have it for when we advise clients after carrying out LEV testing.

[alexander72]

You need PL and PI - NFU Mutual small trader scheme or call Brian Dale @ Miles Smith PLC in Birchin lane and mention james alexander 0 should be about £400 quid for £150k T/O per annum. 

[dombanks]

no its not through an agency... i was put into contact with them by someone i know.

im sorting out accountants and stuff at the mo. (its all a bit scary when youve only ever been PAYE )

thanks for the contacts

[Andy Banks]

If it's going to be longer than 8 months, you might take advice from your accountant as to going Limited, flat rate VAT. Get them to do your payroll, personal tax and PAYE too if they have such a service. It costs, but is so much better in the long run as you don't have to do the accounts or PAYE yourself, just keep a set of simple books on Excel, a record of invoices, costs, expenses, etc. In the long run a good accountant will save you loads of time and ultimately money

[Dave Eastwood (Gadgetman) - Club Chairman]

Yep, a good accountant is an "up front cost" but they don't half save you in the long term; money - directly, time and stress.

 

Appropriate professional indemnity insurance alongside your regular business insurance is generally the way to go.

 

I changed from being a sole trader to being one of two partners in a limited company, some years ago. My immediate thoughts of the protection being Ltd would offer mostly vanished up in smoke in the first year, when all that happened was that it felt like all and sundry required the signing of personal guarantees!