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  1. #1
    Member eif media's Avatar
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    Hello all!

    This is a UK-centric question regarding company status and insurances.

    A little background: I work as a freelance designer in my spare time as an aside from my day job, essentially as a hobbyist. My turnover is relatively low (between 1-10 projects per year) and as such I am registered as a sole trader, filing a yearly tax return.

    As my caseload increases (and expands from friends to friends of friends to wider circles) I am starting to consider insuring myself in order to limit my personal liability. That said, I do not consider my turnover high enough to register as Limited and incur the associated costs with having to employ the services of an accountant, although this seems the most obvious route to insuring my personal assets.

    I'm interested to hear your experiences regarding insurance types, whether they're worth investing in and ultimately what point you come to registering a Limited company, or whether other routes should be considered.

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  3. #2
    Junior Member getis's Avatar
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    Hi,

    You should consider taking out some form of Professional Indemnity Insurance to cover your work. This will cover you as a sole trader or limited company just in case something you build goes wrong and causes your client to loose business or data. As a website designer you're really looking at the site going offline for some reason, getting hacked, loosing the database or uploaded files, etc.

    Make sure you come to some arrangement with your client about backups, both files and databases. This is a service you can charge for, but I'd always take backups anyway even if the client doesn't want to pay for the service. If something does go wrong you're then in a position to fix it for them either for some payment or to avoid legal action. Either way they'll be grateful you can save them!
    eif media likes this.

  4. #3
    Member eif media's Avatar
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    Thanks Getis - I always keep backups as standard.

    I'll take a look at some PI policies. I appreciate the advice.

  5. #4
    WDF Staff AlphaMare's Avatar
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    Quote Originally Posted by eif media, post: 243215
    Hello all!

    This is a UK-centric question regarding company status and insurances.

    A little background: I work as a freelance designer in my spare time as an aside from my day job, essentially as a hobbyist. My turnover is relatively low (between 1-10 projects per year) and as such I am registered as a sole trader, filing a yearly tax return.

    As my caseload increases (and expands from friends to friends of friends to wider circles) I am starting to consider insuring myself in order to limit my personal liability. That said, I do not consider my turnover high enough to register as Limited and incur the associated costs with having to employ the services of an accountant, although this seems the most obvious route to insuring my personal assets.

    I'm interested to hear your experiences regarding insurance types, whether they're worth investing in and ultimately what point you come to registering a Limited company, or whether other routes should be considered.
    I'm in the same boat as you - in Canada, however.
    I include those safeguards in very specific language in the contract I have my clients sign (especially friends!). I have not had any problems with it so far, but I've only been doing this as a business for a few years.
    Good design should never say "Look at me!"
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  6. #5
    Member eif media's Avatar
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    Quote Originally Posted by AlphaMare, post: 243498
    I'm in the same boat as you - in Canada, however.
    I include those safeguards in very specific language in the contract I have my clients sign (especially friends!). I have not had any problems with it so far, but I've only been doing this as a business for a few years.
    The importance of a contract between friends cannot be underestimated - I'm sure many friendships have been saved by having agreed terms written down.

    I think I will look at indemnifying myself through contract terms for the time being, at least until income is more steady!


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