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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a subsidiary question Watts following on from

Resolved Question:

I have a subsidiary question for Alex Watts following on from the answer she gave me earlier today. This was to do with the need (or, as she pointed out to me, lack of need) for PI insurance.
My subsidiary question is this. Alex's opinion about there being no need for me to have PI insurance was because I am an employee of my company. But I did not point out to Alex that I am not an employee of my company. I take a director's fee every month of £663. My primary source of income (and my wife's) comes from taking dividends from the company each month. Does my not being an employee affect the limitation of liability to the company?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Thanks for requesting me.

Alex Watts :

It does not change the answer.

Alex Watts :

A Director is an employee.

Alex Watts :

He wont be personally liable.

Alex Watts :

The company would be liable.

Alex Watts :

Does that help?

Customer:

Thank you; yes, it helps.

Customer:

More details about the situation: (1) the agency will pay me on the strength of the signed timesheet alone, even without me sending them an invoice. (2) In the agency's agreement with me (which they entitle 'Limited Company Agreement')

Customer:

... they state that my company 'will fully indemnify the agency and the hirer against any ... costs arising from any breach of this agreement or any negligent or unlawful act or omission by you causing loss to us or any third party' and that my company will 'maintain during and for 12 months after an assignment insurance in accordance with' the foregoing requirement.

Customer:

Regarding (1), in the Agreement it does actually state that payment to my company will be made on the submission of an invoice.

Customer:

Regardless of these details, am I correct in saying that the over-riding consideration is that my doing the work on behalf of the company and the submission of company invoices for the work done means that liability is held by the company and cannot be passed on to me personally?

Alex Watts : Correct
Customer:

Thank you very much for your help, Alex, especially as it has been over the week end. Now I am confident to continue in my job without taking out PI insurance.

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