Limited Company Insurance
Understand and compare property and liability insurance for a limited company
What is limited company insurance?
Limited company insurance, is also known as business insurance for limited companies, are types of cover designed to protect companies registered as limited liability entities. Having adequate cover helps offer protection from significant financial losses and legal liabilities, ensuring business continuity and stability. The main components of limited company insurance often include professional indemnity insurance, public liability insurance, employers liability insurance, product liability insurance, and property insurance.
These property and liability covers can be tailored to meet the specific business needs and risks associated with the entity's operations. For both a large and a small enterprises, cover is crucial for covering both the business’s liabilities and personal liabilities of its directors and officers. Without the right cover, a single claim from a customer, supplier, or employee can lead to significant financial losses.
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Public liability insurance for limited company
Public liability insurance is a type of cover that provides coverage for claims made by third parties for injuries, property damage, or losses incurred as a result of the activities undertaken. It is designed to protect businesses against the financial burden of legal fees, compensation claims, and other expenses arising from such incidents. Public liability insurance cover is especially important for limited companies that interact with the public, including customers, clients, vendors, and visitors.
Employers liability insurance
Employers' liability is a type of business insurance that provides coverage for claims made by employees who have suffered work-related injuries, illnesses, or accidents. It is designed to protect employers from the financial consequences of such claims, including legal costs and compensation payments. In the UK, the cover is a legal requirement for any company that employ staff. Typically the cover is combined with public liability insurance to ensure that limited companies can meet compensation awards that arise in the workplace. It is worth noting employers are responsible not only for their own acts of negligence, but also for those of their staff.
Professional indemnity insurance
Professional indemnity provides companies and professionals protection against claims made by clients for losses incurred due to negligent services, advice, or omissions. This cover is particularly important for businesses and individuals who provide specialised services or expertise, as it helps mitigate the financial risks associated with having to defend against allegations for negligence or breach of contract. A policy will provide coverage for the legal costs and damages awarded by the courts.
Product liability insurance
Product liability is designed to protect companies against financial losses arising from claims related to defects or problems with the products they manufacture, distribute, or sell. It covers the costs associated with legal defense and compensation if a product causes injury, illness, or property damage to a third party. A policy can provide financial protection for compensation claims for thrid-party damages, and legal defence costs.
What additional protections are available for a limited liability company?
There are a wide range of covers that can help you stay protected against a multitude of threats. The policies below are worth considering if you're looking to mitigate your limited company risks.
Business interruption
Will cover the loss of income or profit if forced to temporarily close or reduce operations due to a covered event (e.g., fire, flood, or theft).
Landlord
Protects property owners who rent out their buildings to tenants. It covers property damage, loss of rent, and liability risks associated with renting out property.
Motor fleet
Provides cover for enterprises that own and operate multiple vehicles. Instead of insuring each vehicle separately, the cover can protect all their vehicles under a single policy.
Compare limited company insurance quotes. Talk with one of our experts about your business needs.
Tailored coverage for private limited companies
Professional indemnity
Protects against claims made by clients or potentially third-parties for negligence, misrepresentation, breach of duty, defamation, IP infringement, errors and omissions. Even with the best intentions and companies and professionals can make mistakes, it's important to protect against legal costs and any potential compensation that needs to be paid to the client.
Directors and Officers
Is a type of liability cover that provides financial protection to the directors and officers of a company against claims made against them while performing their duties. Individuals can be held accountable, separate to the private limited company. It covers the personal liability of directors and officers, and can also cover the legal costs and other expenses the legal entity may incur as a result of these claims.
Cyber
Is a type of cover designed to protect from the financial consequences of cyber incidents, such as data breaches, hacking, ransomware attacks, and other cybercrimes. It covers various costs associated with responding to and recovering from such events, as well as potential legal liabilities.
Why choose Get Indemnity™?
We have the capacity to provide our services on an advised basis, which means as an independent insurance broker we can provide personal recommendations that are suitable to meet your specific needs and circumstances. Each insurer's limited company policy will be different - each can have varying coverage limits and scope, while others may have differing flexibility or geographic coverage. Exclusions and limitations are likely to differ between insurers, as well as the premiums and the terms and conditions of the policy.
By having a clear understanding of what your cover protects against, business owners can make informed decisions about their coverage needs and create a robust risk management process. A tailored policy ensures you are not paying for unnecessary coverage while also providing protection against key risks, such as legal claims, employee-related liabilities, or property damage. For example, a technology enterprise might prioritise professional indemnity and cyber insurance to safeguard against data breaches, whilst a construction enterprise will typically prirotise employers and public liability insurance.
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Frequently asked questions
Why does our business need a limited company policy?
Cover is crucial for safeguarding your limited company against unexpected risks and liabilities. It provides financial protection from claims related to property damage, employee injuries, professional negligence, and third-party injuries. Such coverage ensures business continuity by covering legal expenses, compensation claims, and repair costs, thus preventing significant financial losses.
Additionally, having comprehensive cover can boost your company's credibility and trustworthiness among clients and stakeholders. It also complies with legal requirements and contractual obligations, ensuring you are able to operate smoothly and securely. Ultimately, it offers peace of mind, allowing you to focus on growth.
Which kinds of business insurance are compulsory?
Employers liability is a legal requirement up to a minimum of £5 million of cover (however, all insurers in the UK will provide a minimum of £10 million). This form of compulsory cover protects against claims of injury or illness sustained at work by their employees.
A business owner must maintain this cover, even if they have a single employee. Penalties for failing to obtain employers liability can be significant fines, as well as liability for a compensation claim that would have fallen under a liability policy.
Other kinds of protection such as professional indemnity, or public liability insurance may be legally required depending on the industry, and any contractual obligations you may have while carrying out your work. It's worth noting that just because a certain type of cover is not a legal requirement, does not mean it cannot be vital to your operations.
Can you please define a limited company?
A limited company is a legal business structure where the company is treated as a separate entity from its owners and directors. This means that the company itself is responsible for its debts and liabilities.
Other key features of a limited company will include their registration with the companies house, and will be subject to ongoing regulatory requirements such as filing annual accounts, tax records and confirmation statements.
How much does limited company insurance cost?
The cost of limited company insurance can vary greatly based on a range of factors. These can include the type of cover required, the size, the level of cover required, and any additional risks your business may face outside of the usual scope.
To obtain a quote with Get Indemnity, you can start your application here.
Can I arrange a package policy?
Yes, many of these types of cover can be purchased together. For example, public/products liability and employers liability can often be purchased as part of an office policy. The same can be said about business interruption, public liability cover, and contract works, which can often be packaged together as part of a contractor all risks, or a tradesman policy.
Related articles and guides
General liability insurance is a type of business insurance that provides protection against financial loss arising from claims of bodily injury or property damage.
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