Many members choose not to work for an employer and instead set up their own business. This might be as a self-employed sole trader, or you may set up some form of corporate structure such as a Limited Liability Partnership (LLP) or a company limited by guarantee (Ltd Co). How you set up your business will affect what insurance you need and you should take your own insurance advice. You may also need legal, business and tax advice if you are setting up a business.
I am a sole trader, don’t have anyone else working with me, and don’t employ any staff. Do I need additional cover?
The CSP PLI scheme will cover you for your medical malpractice (professional liability) and public liability risks for your individual work, subject to the terms and conditions of the policy. If you carry a lot of stock or other business assets, or have premises, you may need other covers.
Why do I need separate business (corporate) insurance?
An organisation is a separate legal entity which can be sued in its own right. A corporate entity has legal responsibilities to its employees which includes its Directors, and others, and for any claims arising from their work for the entity. Not all the liabilities that a corporate body may be exposed to can be passed down onto an individual’s medical malpractice and professional indemnity.
What happens if I don’t take out corporate insurance?
Your organisation may be exposed to financial risk if your company suffers losses from a claim which is not indemnified. You must take proper insurance and legal advice to decide what action you need to take.
Why am I advised to take legal advice?
Making an informed business decision, particularly with regard to contracts and insurance provisions requires appropriate legal advice which you may need to pay for. The CSP does not provide legal advice for such matters.
I operate as a limited company but I am the only person in the business. Am I covered?
You must check your specific circumstances with Graybrook Hallam. The CSP PLI scheme is designed for individual, not corporate entities. There is an ‘Indemnity to Principal’ clause within the CSP scheme which offers medical malpractice (professional liability) to sole trader CSP members operating as limited companies, but this is subject to strict rules and eligibility criteria.
I run a small business with other CSP members; can I get the necessary corporate cover without paying a fortune?
Yes. Members who run small UK based and registered small businesses – either limited companies or limited liability partnerships –can purchase professional indemnity for their physiotherapy practice at discounted rates from Graybrook Hallam. Business turnover must not exceed £300,000.00 for the last, or next projected, 12 months; all directors and partners must be CSP members; all physiotherapists engaged in the business must be HCPC registered. Other terms, conditions and application criteria apply.
I run a larger business with other CSP members; can I still get the small business cover?
No. If you run a company with a larger turnover than £300,000.00, you will need to take individual advice on your company’s medical malpractice insurance needs and you are not eligible for the CSP small business cover.
I run a business with people who are not CSP members but they are my family (e.g. my spouse/partner). Can I get the CSP insurance products?
No. Regardless of the size of your business, all partners or directors must all be CSP members. There is no exception to this, regardless of how much of the business is owned or otherwise controlled by CSP members.
Further information is available on the Graybrook Hallam website at www.graybrook.co.uk/business-liability
Graybrook Hallam have produced this guide to help you identify the cover for businesses provided through the CSP PLI scheme and the circumstances where separate or additional cover may be necessary.
For specific insurance related enquiries you can contact the Graybrook Hallam, the CSP's insurance brokers:
8 Chandlers Way
South Woodham Ferrers
Essex CM3 5TB