2 separate awkward questions - Professional indemnity / Sub company employee

gutteruu

First question:

Wife works as a sole trader doing digital marketing/brouchers etc. She is contracted by some companies and for the most part does their social media, bit of graphic design, editing brouchers. Should she have professional indemnity insurance?

Second Question:

I have 2 jobs (as an employee). In relation to my part time/weekend job, because of Brexit and my UK employer, they can no longer get insurance to cover an Irish resident employee. They want me to setup by myself and get my own cover. I would rather not setup a company of my own as its a stipulation of my main employment that I cannot be a director of a company. Can I simply get my wifes company above to invoice them on my behalf for this work, and I go under her company as an employee (given its totally non related business). If not, could she setup a second new company and employ me under that.

Gloomtastic!

Yes, she should have PI insurance. It won’t cost much.

The second question has all sorts of problems attached to it. Reading your post, it looks like your employers will have to give when it comes to you being a director of another business.

Mick Tator

First question – Agree with the Gloomster, yes, PI is advisable.

Second question. I would not advise setting up a company unless it was really necessary as it brings admin – filings, returns, etc. although you would qualify for some exemptions. Use of your wife’s company raises all sorts of problematic issues for both of you, so no, that’s not a route either.

The easiest solution is for the UK company to set up a branch in Ireland (not difficult) and have it covered by their UK PI policy but they probably want to avoid the hassle.

My route would be to tell the UK that you will continue to work for them but as a sole trader and that you will take out PI insurance yourself under your business name. I’d guess that they are not specifically saying ‘a company’ and in reality simply mean that the link has to be cut and PI replaced. I cannot see why they could be unhappy with you as a sole trader once you have PI.  Finally, you need to consider that there possibly are HR issues involved, depending on what is in your employment contract.

gutteruu

Thanks for the help. It's much appreciated. She just received a quote for PI for 450. Thats seem about right? Only 1 of 5 companies got back.

Gloomtastic!

https://www.boards.ie/discussion/comment/119014486#Comment_119014486

Without seeing the indemnity limits it's hard to tell but sounds about right for an sub €50,000 turnover business.

Mick Tator

https://www.boards.ie/discussion/comment/119014486#Comment_119014486

Not surprised. Many insurers in the PI frame deal only through brokers, it saves them a lot of hassle with explanations, premium collection, etc.  Impossible to comment on the premium quoted  without reading the policy cover terms, (another reason for using a broker).