Why choose Howden for Limited Company Insurance?
Here at Howden, we know how difficult and stressful it can be for tradesmen to find the insurance policies they need, and that’s why we do our best to do the heavy lifting instead, so you don’t have to. Thanks to the great relationships we have with our selected panel of both standard and specialist insurers, we’re able to make the process of sourcing various different limited company insurance options, on your behalf, simple and straightforward. What’s not to like?
Our team of specialists acknowledge that each limited company insurance policy needs to be unique and tailored to each owner and their business. That’s why we provide a personalised service, which focuses on getting to know you and your business better, whilst also learning more about what you want from your limited company insurance cover.
So, what are you waiting for? Whether you need to make a claim, purchase a new limited company policy, or renew an existing one, just know that we’re always here to help.
Benefits of working with Howden:
- You can trust us – we’re rated Excellent on Trustpilot.
- We’re driven to save you time, money, and hassle.
- Benefit from a tailored service that comparison sites can’t provide.
- Speak with your local branch, within your community.
- We’re right by your side in the event of a claim.
What is Limited Company Insurance?
Limited company insurance, which is sometimes referred to as Ltd company insurance, can be best described as an insurance package that’s designed to protect limited companies and their directors from various risks and liabilities associated with running a business.
Each limited company policy is different though, as the specific needs of a limited company varies depending on the nature of the business, its industry sector, the size of the company, regulatory requirements, and much more.
Here at Howden we strive to tick as many boxes as possible for all our clients, offering a wide range of business insurance options for both large and small businesses, because we believe that no matter how unique your limited company is, it should be entitled to the right insurance protection.
Does a limited company need Public Liability Insurance?
Yes! We believe that all limited companies should have a public liability insurance policy in place! Whilst unlike employer’s liability insurance, it is not a legally required policy, public liability cover is renowned for being a must-have insurance because of the coverage it offers to businesses.
The biggest benefit of public liability insurance is its ability to cover your limited company against compensation claims.
Imagine a service your company provides causes damage to client’s property or resulting in an accidental injury to a member of the public. In scenarios such as these, public liability insurance is there to protect your limited company, providing you with financial support to cover compensation pay-outs or any legal costs you spend on defending yourself following a legal claim.
All in all, every comprehensive insurance policy includes public liability cover, so if you’re looking to insure your business, be sure to consider how this product could support you.
What insurance does a limited company need?
An absolute must-have insurance for limited companies is public liability insurance. The way this cover is designed to support almost any business from the claims that come from clients or third-parties makes it an essential policy for any successful limited company.
However, limited companies shouldn’t only rely on public liability insurance to protect themselves, because there are many other types of cover available. Here at Howden we offer a wide range of business insurance products which all can, in their own way, provide a unique, specific coverage that can support a limited company. Take a look below at what we can offer.
The cover you need for protection from third-party claims regarding accidental injuries and property damage.
Compulsory business insurance for limited companies with employees.
Do you offer professional advice as part of your service? Professional indemnity cover could help.
Tools are priceless to a business in the trade industry, making a tool insurance policy essential.
Business equipment insurance
Your business equipment is what keeps your operation constantly working, and keeping it suitably covered makes sense.
Legal action against your business can result in legal fees, which you’d rather not pay out of your own pocket. Legal expenses cover can help.
Hired-in plant insurance
The perfect cover for businesses that rent machinery or expensive equipment in order to fulfil their business service.
Accidents can happen at any moment to anyone, and personal accident cover can provide the cover necessary to help someone and a business get back on their feet.
If something unfortunate were to happen to your business premises, having insurance could support you in the meantime whilst normality is restored.
Keep your business on the road with reliable insurance to cover your van.
Still not sure which cover options should be included in your limited company insurance package? No problem. Get in touch with us today, and we can discuss which options would work best for you and your business. You can either give us a call on 01869 323 322, scroll to the top of this page and click Get a quote, or visit us in your local branch.
How much does Limited Company Insurance cost?
The amount you can expect to pay for limited company insurance premiums will vary depending on several factors. Every insurance provider is different, and they each have their own way of calculating premiums, but generally, the price of a policy will be dependent on:
- How much excess you’re willing to pay
- The nature and size of your limited company
- Where you’re located
- The risks your limited company faces day-to-day
- The types and levels of cover your opt for
- Whether you choose to pay in monthly instalment or as an upfront lump sum
We also like to remind our clients that, although we are always striving to find policies for the best prices, the right insurance isn't always the cheapest.
We’ll help you get your hands on a limited company insurance policy that not only meets your budgetary expectations, but also provides you with the level of cover you're looking for.
With Howden, you also have the option to pay for your insurance policy via direct debit, if that's your preference.
Who do we also insure?
Not only can we help limited company business owners, but we can also offer cover for a wide range of other professionals, such as:
- Car Valets
- Contractors All-Risk
- Gardeners & Landscapers
- Gas Engineers
- Market Traders
- Painters and Decorators
- Sole Traders
- Tree Surgeons
- Window Cleaners
Want to learn more about insurance for limited companies? Have a read of the articles below that you can find on the Howden Blog!
- Your guide to setting up a limited company in the UK
- What's the average employer's liability insurance cost?
- How to register a name for a business in the UK
Limited Company Insurance FAQs
If your limited company has employees, then yes, it is a legal requirement that you have employers’ liability insurance in place. It doesn’t matter whether you’re a limited company owner, sole trader or self-employed – if your operations includes members of staff, employers’ liability insurance is necessary, to protect them and your business.
No, you are not legally required to have professional indemnity insurance as a limited company, but, it could be worthwhile having depending on various factors such as the nature of your business, the industry you operate in, and the specific requirements of your clients.
Professional indemnity insurance is considered essential for businesses that offer professional advice as part of their service because of the protection is provides against claims made by client in the event that the service they receive results in them being worse off financially.
Perhaps the service involves professional negligence, errors or mistakes, all of which can damage a client and leave them with no choice but to make a claim against your business. Meaning ultimately, whether your limited company needs professional indemnity insurance cover or not will depend on whether you feel you are at risk of these types of claims being made against you.
Tax investigation insurance is designed to cover businesses against the potential costs of being investigated following a HRMC enquiry, so if you’re a limited company business owner, you need to weigh up the chances and risks of being investigated and decide yourself whether the insurance is necessary.
For the businesses that complete their tax returns appropriately each year and keep accurate tax records, they’ll understandably feel tax investigation insurance is an unnecessary expense. But, there’s always a small chance that a tax investigation into your business could arise at any minute, and having the right cover in place could save you time and money.
Limited companies only need to consider run-off insurance if they want to be covered against any claims that arise once the business has ceased operating.
If your limited company closed, let’s say in Jan 2022, and a client you worked with in 2021 attempted to sue you now, run-off insurance would cover you and the business against the claim. Clients your business has previously worked with can sometimes sue over 5 years after the business stop operating too, which furthermore heightens the important of lengthy run-off insurance policies to cover no-longer-operating businesses.
Depending on your circumstances and the nature of your business, it’s worth speaking to a solicitor and a specialist insurance broker to find out exactly how much having run-off insurance cover could benefit you.
Limited companies ARE required to pay National Insurance Contributions (NICs), but not necessarily on their profits. It’s both the employees and employers of limited companies that need to make personal National Insurance payments.
To find out more on this topic, it’s well worth visiting the UK Government’s guide on National Insurance payments.
A limited company is a type of business structure where the liability of its members or shareholders is limited to the amount of capital they have invested in the company. This means that if the company were to incur debts or face legal action, the personal assets of the shareholders are protected, and they are not personally liable beyond their initial investment.
There are two types of limited companies: Private limited companies and Public limited companies. The main difference is that the latter can offer its shares to the general public through a stock exchange, whereas a private limited company cannot. To identify them, private limited companies end with the “Ltd” suffix, whereas public limited companies end with the “PLC” suffix.
The main difference between limited companies and sole traders is the fact that sole trader businesses consist of one, single owner, whereas limited companies can have multiple owners.
However, the multiple owners of a limited company do not typically have their personal assets tied up in the business, have no business liabilities and are deemed to be a separate legal entity from the company itself, whilst sole traders are the opposite, with personal assets tied up in the business, taking on full responsibility for the operation and considered one legal entity as part of the company.
To find out more about the differences between the two types of businesses, read our dedicated blog: Sole Trader vs Limited Company: All the Info
For many entrepreneurs, they begin their business journeys as sole traders before later down the line becoming limited company owners.
Converting from a sole trader to a limited company is a straightforward process. Simply adhere to the standard procedures for establishing a limited company, ensuring to notify the following parties:
- HMRC: Contact HMRC to deregister as self-employed and inform them of the change in your business structure.
- Your accountant: Inform your accountant about the transition to a limited company so they can make any necessary adjustments to tax calculations.
- Your insurance provider: If you're transitioning from a limited company to a sole trader, review your insurance policy to ensure it aligns with your new business structure.
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