Are you an employee of your own limited company?
I am often asked about the employment status of my clients. It is a little on the technical side! So here goes:
A person needs a contract of employment to be an employee, so you are not technically an employee unless you have one between you and your company (highly unusual of course for contractors operating through their own limited company).
Without such a contract of employment, what you are technically is a worker/director/owner of your company. You can also use the generic term “self-employed” as you are operating through your own limited company to obtain contracts for services.
Contracts for services are the contracts that independent contractors enter into as opposed to a contract of service, which is what an employee enters into.
There is therefore no need to have Employers Liability insurance unless it is stipulated in your contract with your company’s client(s). However, the premium for this type of insurance for a person in your position is normally minimal.
Whilst Employers Liability Insurance is not required, I would recommend that Professional Indemnity and Public Liability (PI/PL) insurance is definitely on your shopping list. It seems to be required more and more these days.
Surely it is confusing to use the generic term ‘self-employed’ because firstly your tax affairs are very different if you are truly self-employed with no Limited company, and secondly a ‘self-employed’ mindset could lead you into murky areas where IR35 is concerned.