Professional insurance cover - anybody up on it?

[Gentle Ben]

I understand you need to policies to cover yourself going self-employed. I have been having thoughts of going self-employed when I gain the last of my electrical certifications in June.... if someone is prepared to £36ph to my boss for my services then why should I accept a fraction of that when I can be out there earning the whole amount for myself?

Anyways, I have it down loosely that the two policies you should have as a self-employed person are:

Indemnity
Liability

Now some reading around suggests that a 'Professional Liability insurance policy' provides cover against both - cover against physical damage and injury to a 3rd party caused by the activities of the insured (liability) and against financial damages or losses incurred by a 3rd party, again caused by the activities of the insured (indemnity).

I've had a browse on Wikipedia trying to get to the bottom of what you actually need when self-employed and tbh the legal jargon isn't helping.

Can anyone expand on it for me?

[The T.I.B.]

Try the CAB and the FSB

Citizens Advice corporate website - Home
Federation of Small Businesses (FSB) - Britain's Largest Business Support Organisation

Failing that write in to Working Lunch lol

[bidderman1969]

definately join the FSB !

[Jay]

hi matey ive been self employed for about 3 years now and the insurance ive got is with trade direct but thats only for builders (i think) but they insure you for damage to third partys i.e if your on the scaffolding 10 flights up and you drop a hammer and it goes through a car window then that wen the third party part comes into effect also you will need a UTR no. which is the way you pay your taxes,NI you get a bill every 3 months (thats wot i opted for) if you need any numbers for places to ring ie UTR will sort it out for you later
hopes this helps

[Gentle Ben]

Cheers for the advice mate, I'm an electrician by trade, with a firm at the minute and to be honest although I started on a good rate 3 years ago it hasn't risen since and with the cost of things ever increasing, it's becoming an ever increasing struggle.

I know for a fact that the rate I get charged out at has more than doubled since I've been here, and it makes me sick to think my company is raking in double the money off the back of MY two years of sacrifice at college becoming qualified.

Like I said - if someone is prepared to pay the best part of £40 per hour for me, then why can't I go out there and earn all 100% of that for myself? Makes me wonder why I stay there earning less than a quarter of that per hour.

I've got offers of private work coming in all over the place, a couple of top-to-bottom domestic rewires for friends, I've got my best mate fitting out his attic that I'm rewiring sometime this week, a few minor electrical works - extra sockets, lighting etc. for friends and friends' families and there's even a few local businesses who've contacted me about doing some commercial rewiring/installation.

Thing is, it would be easy for me to go out there and do it cash in hand, but I'd want to do it legally and above board - call me stupid by all means, but there's that many people out there who get a kick out of grassing people up that it's simply not worth it.

Once I can sort this insurance out then I can take on some of this work in addition to the main job and hopefully get enough coming in to be able to quit my job and go self-employed.

All I know is, something's got to give. I'm due a van and/or a payrise. I've been there 3 years, done everything they've asked - and then some. I raised these issues in a written letter to the gaffers six weeks ago which they acknowledged and promised to try and sort out for me. Thing is how long do you give it before you give up and go elsewhere?

[The T.I.B.]

You did 100% the right thing writing to your employers explaining the situation.

If you're bold enough then you should be just fine working off your own back. Remember no-one ever got rich working for someone else.

[kaos]

what you also have to worry about is work drying up!

So there might be all these jobs now but what about in 6 months time.

[Gray-16v]

Originally Posted by kaos

what you also have to worry about is work drying up!

So there might be all these jobs now but what about in 6 months time.

Go work for another firm, if you go ltd company you can put your business on hold for as long as you like. My old man had his ltd company on hold for about 10 years before he scrapped it. Costs a wee bit but not much.

[Jay]

Originally Posted by kaos

what you also have to worry about is work drying up!

So there might be all these jobs now but what about in 6 months time.

thats very true at the mo the building trade is suffering by the credit crunch, no one is building houses anymore nobody to buy them you see,on the other hand if you put a advert in the paper and youre doing house or partial rewires then you should be ok, there will always be someone who needs work doing so it should keep you going