I have recently started a business with a friend. We provide short course training. We are operating as a sole trader and have taken out indemnity insurance. The value of this insurance is, of course, limited. So what would happen in the unlikely event that someone sued us for more than the value to which we are covered? Also would registering a limited company provide us with more protection? I have heard that it is not quite that straightforward as this because company directors can be personally held financially liable under certain circumstances, is that true?