The 'IT Contractor Insurance Scheme' - Professional Indemnity
Professional Indemnity
Provides financial protection for your company and is designed to meet the cost of defending claims made against you, including damages that may become payable. Claims can occur where a client suffers a financial loss as a result of alleged mistakes or omissions on your part. You may even be sued by a client who is merely dissatisfied, but has no valid claim, leading to substantial legal costs and time away from contracts. Of course, such claims are rare.
The starting prices for Professional Indemnity Insurance remain at £165, currently unchanged for third year running. In light of IR35, CUK has found that contractors are increasingly ‘bolting on’ Legal Expenses cover to their PI Insurance policies to provide added financial protection against VAT disputes and Employer Compliance investigations.
PI insurance covers IT/computer contractors as well as engineering contractors and freelancers in other professions; click through to the quote and application engine for full list.
Costs
The Professional Indemnity prices are as follows - prices are per annum. Prices are dependent on the fee income bracket of the company (last year's fees).
Fee Band (£)
Limit of Indemnity / Premium (£)
Excess
100,000
250,000
500,000
1,000,000
2,000,000
£
£0 - 50,000
165
170
200
245
430
250
£50,001 - 100,000
208
230
300
370
580
500
£100,001 - 150,000
260
328
390
546
720
500
£150,001 - 200,000
312
390
468
656
860
500
£200,001 - 250,000
390
488
585
820
1,075
500
£250,001 - 300,000
468
585
702
984
1,290
500
£300,001 - 400,000
515
643
772
1,083
1,419
500
£400,001 - 500,000
576
708
850
1,191
1,560
500
£50,000 Legal Expenses cover available for an extra £75.00 per annum
Insurance Premium Tax of 5% is included in the above premiums.
£50,000 Legal Expenses cover is available for an extra £75.00 p.a. (see below):
Premiums start at £165.00 per year based on a £100,000 limit of indemnity.
Legal Defence cover for millennium problems
Cover backdated to when your firm was established
Worldwide cover excluding USA/Canada
Simple Application Form is all that is required
Underwriter covers 'direct to client' or via agency work
Costs are fully expensable
'Run off' cover can be arranged for companies who cease trading
Scheme is regulated and reviewed regularly by Lloyd's regulatory division
How to Apply
Obtain A Quote.
Complete The Application Form
Make Payment via credit/debit card or direct debit. (A one off annual payment)
View/Print your policy documents in a secure customer service area. (A password will be emailed to you).
If you have any queries during the application process please contact Caunce O'Hara on 0161 833 2100.
