Insurance requirements for Ltd company

[Paulie]

Hi all,

I’m in the process of setting up my own ltd company and would appreciate any advice with regards to what insurance requirements there are.

I work as a technician/party chief/client rep on offshore surveys. As a freelance the company I work for normally provides repatriation cover and I provide my own travel insurance.

As a ltd company I think the clients might generally expect me to provide repatriation cover and travel insurance. I’m also aware that liability and professional indemnity insurance, among others, are available. I have no idea what is legally required, what is a ‘good idea’ and what is perhaps a frivolous waste of money! Would appreciate your thoughts on this.

[luckyjim37]

Just noticed that nobody had responded to your question.

As a ltd company you should have liability cover so if you damage a clients equipment or injure someone on a job you are covered.

There is another insurance which covers you as the employer in the event of you injuring yourself/employee. This one may not apply to you as in the event of a major payout by the insurance company they would possibly look to reclaim some of the money and would end up suing you as the company director for the money they have just paid you, stupid really but there you go.

For public and Private liability cover you would expect to pay in the region of £1050 a year. For the essential cover which I think is the Public liability it is around £800 a year.

Here is the contact email for Offshore & Marine Insurance services Ltd

linda@offshoremarine.f9.co.uk

They are very quick to respond to any queries you may have. I have used them for a couple of years now and have had no problems.

[James McLauchlan]

Our company ( ROVworld Lda ) is also insured through Offshore & Marine Insurance services Ltd . They are very helpful people and do seem to know their stuff. Good to deal with.

These are guidelines written by me… based on my experience. Therefore, do not take them as gospel.
Hopefully for some they will help take part of the guesswork out of the liability insurance minefield as applicable to our industry

For those that may offer services to a UK company by operating through a non UK incorporated (limited) company:

Be aware that should your foreign company contract to a UK company (be they an ROV Co or an ROV agency) you may be required (by your client) to carry UK statutory Employers liability insurance valid for work offshore and in many cases third party liability insurance. For a one man limited company it would probably cost around GBP £1,200 (ish) per annum for both combined. (For combined insurance my research for our non UK company indicated that it will be four figures no matter where you go)
Probably less for a UK registered company but close to four figures.
If you are not asked to show proof of insurance you should consider asking your client to provide proof to you that their insurance covers you in the country services are to be performed. This is clearly defined as where you will be physically be working and not where the contract was signed or the companies are registered.

Our company is registered in Portugal
We are not a one person Ltd company as we have a total of three employees.
Our cover is for two people working offshore globally (Canada and USA have extra conditions imposed) plus one person in the office (Three employees covered in total).
The cover is £10,000,000 (10 Million) Employers Liability and £2,000,000 (2 million) third party liability plus products insurance thrown in at no extra charge.

It’s costing us (as a non UK based limited company) GBP£2600 p/a to insure through a UK Lloyds insurance syndicate via Offshore & Marine Insurance services Ltd as the agent.
Another UK agent quoted us £4,500/pa for what in effect was the same cover, also through a Lloyds syndicate.

Notes on UK employers liability insurance:

• For the UK £5 million of cover is a statutory requirement for limited Co’s.
• Most policies offer £10 million as standard.
• It is my understanding that a one person limited company does not need to carry employers liability as a statutory requirement but you should read up on that, and then consider this… Whilst it may appear to save money by not having the insurance you may not be employable offshore worldwide without it. In other words some companies will insist that you carry it whether you are a one person band or not.
• For Canada and USA you will need to talk to your insurance agent about terms of cover. It depends how pen you may work in these countries as to how you approach liability cover.

Notes on insurance agent:
Offshore & Marine Insurance Services Ltd
Act as an intermediary to the various Manufacturers and Contractors and Vessel Operators engaged in Offshore Oil and Gas and Marine Industries and Operations

If anyone see’s any errors in the information I have provided please comment and I will debate/correct as required.

regards

[Author]

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