Subject: Insurance - which & how much do I need?
I'm just about to launch a garden maintenance service for people with mobility issues in south Manchester.
I'm predicting to earn about £11,000 in the first year. My services will stretch to landscaping if required.
I wondered what level of Public Liability insurance I would need?
would I also need: -
Professional Indemnity Insurance
Legal Expenses Insurance
and to what level?
Today I have been suggested by two brokers that I would need £2 Million in one instance and £100,000 Public Liability in another.
Please Help!
Parsnip, I work for an insurance company that specialises in charities and n-f-p organisations and I’m happy to help (although apologies for the delay in replying). Your questions are all good ones and I’d need to talk to you and understand a bit more about your plans before giving definitive answers, however I’m happy to give the following guidelines:
Public Liability - £5m is a good minimum number. Most councils currently recommend £10m and the advice you received of £100k sounds very very low. £5m sounds a daunting number but shouldn’t cost much to buy (small charities can buy it online from us starting at £75 p.a.).
Professional Indemnity – depends what you’re planning to do. ‘PI’ is normally purchased by people who are being paid to give advice, if you have a big design element to what you’re doing then you should look at it, if not, you may be able to do without.
Legal expenses – You should only need this if you have employees. The legal costs of defending any claims against you from the public should be met by your Public Liability cover, ‘Legal Expenses’ normally refers to insuring yourself against employment law claims (a confusing term I realise!)
Hope that this is helpful. If we can be any more help, then do get in touch www.tennysoninsurance.co.uk
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