self employment risks

(6 Posts)
TheAvengers Thu 03-Apr-14 20:08:33

Hi

Can someone answer me this question please?

If I register and practice as self employed IF I was sued would indemnity insurance be enough? Say 3 million protection.

Or would I still be at risk of losing my house?

missmysexybody Thu 03-Apr-14 20:09:29

Depends on the policy and the worth of your house.

TheAvengers Thu 03-Apr-14 20:16:48

Message withdrawn at poster's request.

TalkinPeace Sat 05-Apr-14 22:00:40

Depends what you are doing and what your professional body is

PortofinoRevisited Sat 05-Apr-14 22:05:25

You need professional advice vs MN advice re liability surely?

KateFranacademy Sun 06-Apr-14 14:46:47

If you're worried about liability, you could also consider operating as a limited company. In the UK, limited companies are treated as a separate "legal person" to their owners. This means that if I want to sue the business, I sue the company, not the individuals that own or run it. The owner's liability is limited to the amount unpaid on their shares (so if you own 10 shares of £1 each, your personal liability is limited to £10). There are exceptions to this rule, for example, if you enter into personal guarantees with the bank or a landlord, then you may still have personal liability in excess of your shares. You also need to take advice from an accountant and a lawyer as there may be tax advantages depending on whether you operate as a sole trader or through a limited company. Finally, the company still needs insurance, even though you limit your personal liability.
Hope this helps.

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