Hi am just planning on opening up a bookkeeping business at home just want to get any idea how professional indemnity works and how much annual turnover i shall put upon qouting, as i havent got any idea if how much i am goin to earn for a year? and is it important to include Legal expense Insurance. Any help or advise will be appreciated?
It's definitely a good idea to have some Professional Indemnity Insurance. Just contact a PII provider and give them a few basic details about your business. Obviously if it's a new business these will be just projections but this is fine. If you've given up a job to start a book-keeping business then I guess whatever your old salary was you'd expect to at least match with your new business? Therefore quote a little bit more. If not, you'll have to estimate.
On a relatively low turnover of say £20K - £30K p/a the cost should be around £130.00 p/a. Included in my monthly direct debtit I pay £2 which pays for the legal expense cover. I think it's worth it but it's a personal choice.
I am just planning to start my own book-keeping business at home. I am interesting the PII company that you bought the insurance from them. Is that any possible give me their phone number or email address that i can contact them?
Hi, I am just starting out. Can someone give me advice as to what level of liability insurance I should have? I have been working on an estimated turnover of 20k, and an indemnity cover of 250k, and have been quoted £200. Is this about right, do I need more insurance than that? Does the figure sound about right? Please help Karen
Hi Is it of benefit to have public liability cover as well as professional indemnity and legal cover ? I am a sole trader starting up as a bookkeeper and payroll business from home.
Public Liability insurance is unlikely to be of much use to you.
For a bookkeeper working from home you shouldn't be placing any public or clients at risk of accident or injury... and I'd be surprised if in your work you placed them at any personal risk.
I used Hiscox and pay about £341 pa but I do have public liability as well as Endemity, as I sub contract to a local office and work in their premises 3 days a week on their computer system. When I rang Hiscox that was what they suggested to me.
Which professional insurance - PII providers can a person use, if he is not having an accredited qualification from AAT or ICB for example, and if he does not have a bookkeeping experience? Any website addresses? Thank you! DGA
As you've spotted already the cheap insurance through Trafalgar is only available through the professional bodies.
Might be cheaper to join someone like the IC B in the long run though as very basic PII will set you back around £45 for initial low levels of income where Hiscox would be around £350!
So, membership of the ICB, plus exams (to level II), plus insurance and practicing certificate for around £200 inclusive of MLR cover... Or £350 (ish) for PII plus £120 for MLR (£470).
If your reasoning behind not joining a professional body is worry about not passing the exams then you need to consider whether you are ready to offer your services on a freelance basis. If the issue was assuming that it would be cheaper not to be part of a supervisory body then the figures speak for themselves.
Also if you are a member of a supervisory body you have access to their legal services, help desks, job boards, etc. etc.
Just suggestions but in direct answer to your question take a look first at getting quotes from the above two for starters and then take it from there.
All the best and welcome to the forum,
Shaun.
-- Edited by Shamus on Thursday 12th of May 2011 10:18:45 AM
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
