Insurance - what's needed and where from? - Page 1
Forum section: electronics / general

author: SpiderElectronics
author_rank: Contributor
timestamp: July 03, 2012, 09:12:16 am
content: Having made the leap from employee to going out on my own, I have set up as a Limited Company in the UK.I've been trying to buy professional indemnity insurance - but I can't find anyone in the UK who can cover me!If I were a doctor, solicitor or even a builder then no problem, but as an electronics engineer none of the UK insurance companies seem to have any idea what to do!I need to protect myself and my designs from being sued - after all I don't want to be made bankrupt or lose my house.What if a product I design for another company has a latent fault, and 2 months after the company has made 20,000 of them they all go faulty - how do I protect myself?I've worked in the industry for 25 years and have many, many successful designs under my belt, but you just never know!What insurance(s) do I need, and where can I get them from?

author: mikeselectricstuff
author_rank: Super Contributor
timestamp: July 03, 2012, 10:47:12 am
content: Try Hiscox. May help things to choose your job description carefully - I think mine was "Computer consultant" but it also covers design and supply of hardware.

author: baljemmett
author_rank: Unknown
timestamp: July 03, 2012, 12:18:32 pm
content: I use Caunce O'Hara for my professional indemnity (in the day job as an IT consultant/contract programmer); taking a quick look at their 'quick quote' form they have a couple of likely-looking options under 'engineering contractors' that might suit your purposes. As Mike mentions, Hiscox have also put themselves forwards as catering to this sort of market, so would be worth talking to as well.

author: mikeselectricstuff
author_rank: Super Contributor
timestamp: July 03, 2012, 01:30:46 pm
content: QuoteThis is what limited companies are for. Worst case you fold the company and start again with a new one. Happens all the time. Can get messy if the company owns significant IP, in which case talk to a lawyer about maybe holding IP in a seperate entity and licensing it.QuoteThrough the terms of the contract under which you do the design. Basically you want to put the responsibility on them for testing to establish that it meets their requirements. If it fails later, then it's their fault for not testing adequately. (or more likely they have messed up something in produciton or parts sourcing, or are using in ways outside the original specification)

author: SpiderElectronics
author_rank: Contributor
timestamp: July 04, 2012, 09:44:14 am
content: Hi and thanks for all the replies.I originally did try Hiscox - and they couldn't quote and referred me to 'QuoteDesk'I did get a couple of companies who sent me a proposal form to fill in, but all the questions were centered around the building and construction industry!I phoned and spoke to these companies and they told me to fill in the form anyway, leave blank the irrelevant sections and make comments about what the company actually does, all of which I did and all I got back was 'unable to provide a quote'.I will try again, and yes I do try to protect myself with good contracts, but that won't stop some customer throwing a rattle out the pram!Thanks guys, I will keep trying!

author: G7PSK
author_rank: Super Contributor
timestamp: July 04, 2012, 07:37:16 pm
content: If you are making any thing in the way of a product you need product liability insurance, that should protect you if little Johnie sticks his fingers in it and gets them cut off or electrocuted etc.