Was asked a question a few weeks ago by a consultant.
The question was:
“What happens if I make a mistake and I get sued by a company?”
I then asked: “Are you a limited company?”
They responded: “No”
I then had to explain that, potentially, they have put their personal assets at risk as by not having a limited company they are holding themselves personally responsible.
“Ah…” they said.
I then explained that he could protect himself and his personal assets by ensuring appropriate professional indemnity insurance was in place. They could also incorporate and set up a limited company as a further measure of protecting personal assets but this could have positive or negative tax implications, depending on the circumstances.
Moral of the story. Make only 1 mistake if you can. Don’t make another mistake by not having insurance to cover your first mistake!!!
If you have any questions or concerns, feel free to get in touch!
