Professional indemnity insurance (PII) is the most important business insurance for a limited company to have in place. Its purpose is to protect the company in the event that one of its clients brings a claim against it in relation to the work that has been carried out.
A limited company is liable for making good on any damage caused by negligent or faulty work but with PII the costs of doing so are covered. This cost could turn out to be far more than the work billed for so it is well worth having the PII in place. For example, a software product that inadvertently introduces a virus into a client’s systems could cause significant damage and associated costs.
When working in a permanent role your employer will have professional indemnity insurance in place for this reason; whereas when you are working through your own limited company your company has responsibility in this area.
Many contracts will insist that your limited company does have professional indemnity insurance in place. Your proposed contract is a good place to start when working out what level of professional indemnity insurance you should be buying.
Operating in an environment where you need to have professional indemnity insurance in place for your company is an indicator of independence and therefore supports being outside of IR35. More information on IR35 can be found here.
Why Integro Accounting?
Integro Accounting is the UK’s only specialist provider of fixed fee, limited company accountancy services for contractors, consultants and freelancers that was established to an award winning standard – our Practice Manager, Maria Hickmott FCCA, won The British Accountancy Awards’ ‘Accountant of the Year’ in 2011.
We were set up with the vision of providing a service that is the ultimate for the dynamic, busy professional of today in a language you understand.
Integro Accounting have designed a bespoke service for the contractor who is always on the go; never forgetting that one size will never fit all.
The relationship you have with your accountant is the most important factor in our service which is why we will always offer unlimited contact with your own personal accountant; whether that contact is via the phone, email or face to face.
We have our 3 offices located in London, the South-West and on the Bedfordshire and Buckinghamshire border. There are also meeting locations in many of the major cities and towns across the Home counties, South-West and South Wales, all conveniently placed so that you never have to travel far to meet your accountant.
If you have any questions about contracting or would like to find out more about how Integro Accounting can help you and business please call Christian on 01525 303984, email firstname.lastname@example.org or request a callback.