I’ve taken the plunge and am now a limited company driver but the agency has thrown in something I didn’t expect.
Public Liability Insurance and Employers Liability Insurance - apparently I have to have my own.
My understanding of the situation is that as I am driving anothers truck and doing anothers work, another has the liability. They say I have to provide my own.
So, what is the right answer, am I liable or are they? Also, what risks would a LtdCo driver need to insure against?
Hi as i understand it you must have at least P.L.I. to conform with ltd company working though agency rules/law
and the agency insurance picks up the bill if you have a knock with someone elses vehicle ( it gets passed on )
They’re not talking about vehicle insurance.
As a limited company you are a legal entity and undertaking work hence you need PLI and as you are an employee of said company you also need employers insurance. Neither cost a fortune so I’d just get them to cover yourself .
When I had my own company ( not driving granted) my PLI was £185 for £10m, and employers was £125.
Have they told you how much PLI you need? You’d probably get away with min £2m which would be a lot less than I paid
nsmith1180:
I’ve taken the plunge and am now a limited company driver but the agency has thrown in something I didn’t expect.Public Liability Insurance and Employers Liability Insurance - apparently I have to have my own.
My understanding of the situation is that as I am driving anothers truck and doing anothers work, another has the liability. They say I have to provide my own.
So, what is the right answer, am I liable or are they? Also, what risks would a LtdCo driver need to insure against?
You DON’T need insurance, the agency is pulling a fast one & trying to offset any losses onto you. A lot of them now have slipped in their “contract” a £50K liability limit on losses. So you might want to read the contract (you know, the one no one reads 
)
Any agency who insists on insurance… Walk away unless they are paying a much higher premium rates to offset your extra costs. But you should have stated in you terms of business (you did give the agy a copy of your T’s & C’s?) that you run on any assignment using both the agys & hauliers insurance.
However it might be an idea to have some PLI but I’d be damned if I would tell anyone I’d got it. And keep it for those extremely rare events when the brown stuff hits the fan.
But those events are rare and you already have the limited liability aspect of you Ltd Co, so if things went belly up, just fold the company
Why would you need ‘employers liability’ insurance ? unless you are going to employ someone
peirre:
nsmith1180:
I’ve taken the plunge and am now a limited company driver but the agency has thrown in something I didn’t expect.Public Liability Insurance and Employers Liability Insurance - apparently I have to have my own.
My understanding of the situation is that as I am driving anothers truck and doing anothers work, another has the liability. They say I have to provide my own.
So, what is the right answer, am I liable or are they? Also, what risks would a LtdCo driver need to insure against?
You DON’T need insurance, the agency is pulling a fast one & trying to offset any losses onto you. A lot of them now have slipped in their “contract” a £50K liability limit on losses. So you might want to read the contract (you know, the one no one reads
Any agency who insists on insurance… Walk away unless they are paying a much higher premium rates to offset your extra costs. But you should have stated in you terms of business (you did give the agy a copy of your T’s & C’s?) that you run on any assignment using both the agys & hauliers insurance.However it might be an idea to have some PLI but I’d be damned if I would tell anyone I’d got it. And keep it for those extremely rare events when the brown stuff hits the fan.
But those events are rare and you already have the limited liability aspect of you Ltd Co, so if things went belly up, just fold the company
^^^ is so far the ONLY correct answer.
raymundo:
Why would you need ‘employers liability’ insurance ? unless you are going to employ someone
Employers liability insurance is required, as the Op is trading as a limited Company, so by default he is an employee of his Company. I asked my broker the very same question, and that is the explanation he gave me. Also with regards to Public Liability Insurance, all Limited Companies have to have this. also self employed people should have it, to protect themselves.
nyk473l:
raymundo:
Why would you need ‘employers liability’ insurance ? unless you are going to employ someoneEmployers liability insurance is required, as the Op is trading as a limited Company, so by default he is an employee of his Company. I asked my broker the very same question, and that is the explanation he gave me. Also with regards to Public Liability Insurance, all Limited Companies have to have this. also self employed people should have it, to protect themselves.
Zzzzzzz
Oops I fell asleep reading that … 
nyk473l:
raymundo:
Why would you need ‘employers liability’ insurance ? unless you are going to employ someoneEmployers liability insurance is required, as the Op is trading as a limited Company, so by default he is an employee of his Company. I asked my broker the very same question, and that is the explanation he gave me. Also with regards to Public Liability Insurance, all Limited Companies have to have this. also self employed people should have it, to protect themselves.
There is no legal requirement to carry Employers Liability for what is in effect a one man band, taking the cover is not compulsory and is likely to be a waste of money.
Public Liability is not a compulsory insurance and is entirely voluntary whether you’re trading as or a limited company
peirre:
However it might be an idea to have some PLI but I’d be damned if I would tell anyone I’d got it.
Correct. Your insurance is to cover you and your company, not to cover another company’s liabilities.
nyk473l:
I asked my broker the very same question
And, surprise, surprise, he gave you an answer that sold two policies.
nyk473l:
raymundo:
Why would you need ‘employers liability’ insurance ? unless you are going to employ someoneEmployers liability insurance is required, as the Op is trading as a limited Company, so by default he is an employee of his Company. I asked my broker the very same question, and that is the explanation he gave me. Also with regards to Public Liability Insurance, all Limited Companies have to have this. also self employed people should have it, to protect themselves.
The answer is yes and no. The op needs it if he its working under an umbrella scheme as a ltd needs to have employers liability as he will be on the payroll as an employee. If he’s fully ltd then employers liability only kicks in if he employs someone even if its his wife or subcontractor
nyk473l:
raymundo:
Why would you need ‘employers liability’ insurance ? unless you are going to employ someoneEmployers liability insurance is required, as the Op is trading as a limited Company, so by default he is an employee of his Company. I asked my broker the very same question, and that is the explanation he gave me. Also with regards to Public Liability Insurance, all Limited Companies have to have this. also self employed people should have it, to protect themselves.
The OP does not need either:
1- You are correct is saying the OP is an employee of the company BUT, there are exceptions for those cases where there is a sole director and majority shareholder. Employer’s Liability is covering your bum against employees suing you. It is NOT needed in this case.
bytestart.co.uk/what-is-empl … rance.html
2- As ‘peirre’ also pointed out, PLI is a supplementary safety net to the company’s limited status. It again is not NEEDED however, you could find yourself in a situation where the agency’s (or someone else you drive for) insurance company drags you into the grey areas: you leave your door open by mistake, someone walks into it and is blinded in one eye. The agency’s insurance may blame you for that as it was your business that caused the incident (the SIC code you registered the company under will lay a part). TBH, PLI is cheap for the peace of mind it gives.
bytestart.co.uk/what-is-publ … rance.html
P.S. If you haven’t yet done it, write out a service agreement. There are plenty of examples online, and make doubly sure you have clauses in there that clearly state that you (i.e. your company) is free from all liability with respect to vehicle insurance, vehicle damage, late deliveries, acts of god etc. Might sound silly, but it’s better in there than getting hauled up and sued because it snowed for three days straight, you missed your delivery and the load went off.
Enjoy 
Let’s put it in basic facts:
IF an agy, haulier, or anyone else finds out you have insurance, they will try to ■■■■ ■■■■ you …
As your the lowest point / weakest link in the food chain, and someone’s gonna get the blaim/claim, & guess who it’ll be?
Which is why I advocate keeping your gob shut.
Beside spending money on insurance is money out of your pocket, despite the so called tax advantages… (VAT on insurance is on not applicable)
Almost:
1- You are incorrect saying the OP is an employee of the company
FTFY
He should be a director, and not an employee taking his income as dividends.
As an employee he would be liable for his PAYE, NIC’s and the new pension regulations.
As a director drawing dividends only he wouldn’t be liable for any PAYE or NIC’s contributions. The umbrella payroll model seems to set people up as both employer and employee, then when the driver decides to ditch the umbrella scheme and go solo, they automatically (incorrectly) follow the same pay model.
nsmith1180:
My understanding of the situation is that as I am driving anothers truck and doing anothers work, another has the liability. They say I have to provide my own.So, what is the right answer, am I liable or are they? Also, what risks would a LtdCo driver need to insure against?
Its public liability to cover you against some twonk tripping over your bag with your sarnis in. Costs around £100 for a couple of million quid cover.
What is in your Terms of Business that you got the agency to sign? Your terms of business you got them to sign would state who was responsible for it.
Not got any? Oh dear, silly boy. You’ll be providing your own liability insurance if they’re wanting you to and getting paid when they decide and also if they choose to they can pass on the costs of any claims for damage and losses for anything you do to the clients vehicle or the load. If you do not have terms of business which state how you want it to work then you’re at their mercy.
nyk473l:
raymundo:
Why would you need ‘employers liability’ insurance ? unless you are going to employ someoneEmployers liability insurance is required, as the Op is trading as a limited Company, so by default he is an employee of his Company. I asked my broker the very same question, and that is the explanation he gave me. Also with regards to Public Liability Insurance, all Limited Companies have to have this. also self employed people should have it, to protect themselves.
lol 
you watch too much TV
Conor:
Its public liability to cover you against some twonk tripping over your bag with your sarnis in. Costs around £100 for a couple of million quid cover.
That sounds expensive. I have PLI to cover my photography at £5m and that only costs me £90 a year. Can anyone suggest a good place to ask then make my own informed decision about taking a policy? Note that to protect you I didn’t ask for a recommendation!
peirre:
He should be a director, and not an employee taking his income as dividends.
As an employee he would be liable for his PAYE, NIC’s and the new pension regulations.
Am am both a director and an employee. Paying myself a basic rate of £10600 / 52. Ill pay about £20 a month in NI but no PAYE. Ill just opt out of pension auto enrollment. Then I am claiming all the allowances which more than covers my bills. Ill take dividends to cover big purchases and the company will buy big equipment for the photography side of the operation.
This is an interesting thread. I too think that as a non employee single Director Ltd company that I do not legally actually need to hold any insurance. I do agree that PLI is a sensible option to have, as it is not too expensive, but I would not publicise it if I held it.
I would be interested in anyone being able to point me to a source of a HGV relevent example set of T & C’s to present to an agency because I agree that they seem to be trying to pass considerable liability onto the agency driver if they can get away with it.
Tafty:
This is an interesting thread. I too think that as a non employee single Director Ltd company that I do not legally actually need to hold any insurance. I do agree that PLI is a sensible option to have, as it is not too expensive, but I would not publicise it if I held it.I would be interested in anyone being able to point me to a source of a HGV relevent example set of T & C’s to present to an agency because I agree that they seem to be trying to pass considerable liability onto the agency driver if they can get away with it.
^^^ what he says really, keen to see examples