How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
75100385
Type Your Law Question Here...
Ash is online now

I need to know if I should take professional indemnity insurance. I

Resolved Question:

I need to know if I should take professional indemnity insurance.
I work in the construction industry as a setting out engineer. This means that I mark the positions of where things will be built: foundations, pipes, cables and services below ground; earthworks, bridges, roads, walls, columns, services and other features above ground.
I have been trained in the use of the equipment required to do this work, but I am not a member of any professional body. I own the equipment.
Through an accountant I have set up a private company limited by shares, of which I am the only director. There are 1,000 shares, 500 held by me and 500 by my wife. My wife does no work at all for the company.
I use agencies to find me work. The Clients I work for either manage sub-contractors or are sub-contractors themselves. Each week the Client signs my timesheet which I then send to the agency who subsequently pays me for the work I have done.
Please could you tell me if I need PII in case of mistakes I might make at work?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts : Hello my name is ***** ***** I will help you with this
Alex Watts : I assume work is done through your limited company ? If so do you sign a personal guarantee with customers ?
Customer:

yes, the work is done through my ltd co. I don't sign a personal guarantee with customers.

Alex Watts :

Ok, you may have insurance if you wish.

Alex Watts :

The worst that could happen is your Limited company is sued.

Alex Watts :

So as long as you dont sign personal guarantee and the company has no assets you can just close it

Alex Watts :

They can not sue you personally if they instruct your company

Alex Watts :

So you can have insurance if you wish. Or you may just want to save that expense and use the Limited Company

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

What do you mean by 'they cannot sue you personally if they instruct your company' ?

Alex Watts :

A Limited Company is a legal entity.

Alex Watts :

If your Limited company is instructed (and paid) to do the work then you can not be personally sued/

Alex Watts :

You set up a Limited company which I assume invoices for the work etc.

Alex Watts :

So as long as there is no PG then you can't be personally sued

Customer:

Does the expression 'instruct your company' mean the Client employs my company?

Alex Watts :

Yes

Alex Watts :

The Company then employs you.

Alex Watts :

This means you are not personally liable

Customer:

Sometimes I am required to inspect work which has been done by other subcontractors and sign a form to approve the standard of workmanship. If I sign should I add the words 'on behalf of (name of Client)' or 'on behalf of Brookson (5152) Ltd' (my company name) ?

Alex Watts :

On behalf of (Company Name)

Alex Watts :

But it does not really matter who signs the sheet

Alex Watts :

If your company invoices out then you wont be personally liable.

Alex Watts :

Does that help?

Customer:

Yes, thanks, ***** ***** help. I invoice the agency, however. Does that change anything?

Customer:

I mean, I invoice the agency who then invoice the Client. Does that shift responsibility for the quality of the work to the agency?

Alex Watts :

That makes no difference.

Alex Watts :

The agent is responsible to the client yes.

Alex Watts :

Does that clarify?

Customer:

Just a final thought: if I did close the company because I was being sued, would there be any adverse consequences to myself? eg not possible to set up a new company because of bad service in the past, etc

Alex Watts :

No. There is no personal liability etc

Alex Watts :

Does that clarify?

Customer:

And my wife holding shares is of no relevance to this discussion of liability? She has no liability?

Alex Watts :

No liability

Alex Watts :

Does that help?

Customer:

Yes, ok, thanks very much, Alex. Big smiley face.

Alex Watts :

Thanks. If I could ask you to rate my answer before you go, the button should be at the bottom of the screen

Alex Watts :

If you need more help, please click reply

Customer:

Yes, will do. Many thanks.

Ash and other Law Specialists are ready to help you