Insurance & liability

It is not a condition for formation at Companies House, but it is important depending on the activity: professional indemnity insurance for consultants and developers, public liability if you deal with the public, and cyber insurance if you store sensitive data.

European clients sometimes require proof of insurance in contracts. Look for a provider who covers non-residents or go through a broker. Form the company first, then take insurance when signing large contracts.

Professional indemnity covers claims of negligence or errors in a consulting/technical service within the terms of the policy. It is not a substitute for clear contracts and liability limits in your agreements. The cost depends on your activity and revenue. Request quotes after you have a CRN and a company address.

If you are a beginner with small revenue you might delay it slightly, but do not ignore it when dealing with large companies.