• FourPacketsOfPeanuts@lemmy.world
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    1 month ago

    Every client I’ve ever had in the UK has required my service company to have indemnity insurance.

    It’s even more important if you’re a sole trader because your liability is not limited. If you royally screw something up and get sued, all your assets are on the line.

    Indemnity insurance covers you to a certain amount (usually 1,5, or 10 million). And working through a limited company further limits you to losing only what’s in the company, not your personal assets like your home.