insurance policy clause in contract insurance policy clause in contract - Page 4
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  1. #31

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    Quote Originally Posted by sigma View Post
    No I didn't realise that a company could fold to avoid liability. Would that be when a law court has awarded damages which exceed the liability insurance cover the contracting company has, or as soon as the writ has been issued?
    A company can cease trading at any time the director chooses to. Personally, I would fold my company at the first hint of any legal action since my company has no brand and no assets so there is no reason to take the risk of losing money.

    Have a read about how Limited Companies work but basically, the liability of the company is limited to the value of the shares issued (hence, it is called "limited" company). In a typical contractor's LTD company there may be 1 or 2 shares issued with a value of typically £1 each. Alternatively some companies issue 100 shares at 1p each.

    If your company has a lot of assets, a brand you have worked hard to build or cash retained in the company then you need to be a bit more careful.

    Quote Originally Posted by sigma View Post
    I didn't make it clear, but the reason the job was turned down was because the contract smelt badly of IR35. I would have happily signed were it just the (incredibly small) risk of liability.
    Everyone will ask the same question.... Did you get the contract professionally reviewed?

    Quote Originally Posted by sigma View Post
    It surprised me that liability cover was written into a contract in a nonsensical way. I wondered if you could argue in court that because of how the clauses were worded it would be impossible to secure "sufficient" cover and therefore the claim was voided.
    No.

    You would be expected to give the care and consideration to the level of insurance cover required that a reasonable person would do. The PCG offer standard policies with £250,000, £500,000 or £1,000,000 worth of PI insurance. You should consider your circumstances and use your good judgement to decide which one you want. If you can stand up in court and explain the logic behind the decision and how you took professional advice from (say) PCG then I can't see that there would be a major problem.

    Personally, I would lean towards the lower of the three unless the agency/client demanded otherwise.

    Something to underline in red though: Don't EVER enter into a contract where you as director give a personal guarantee on ANYTHING. If you do this then you are personally underwriting your Limited Company with unlimited liability and this is not a good place to be. I have seen agents try and slip this in so watch it. Remember, the contract is between your company and the agent, not you personally. It is OK for you to be the named consultant, so long as it makes it clear that you may also send a substitute.
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  2. #32

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    Quote Originally Posted by Wanderer View Post
    Everyone will ask the same question.... Did you get the contract professionally reviewed?
    Yes it was professionally reviewed.

  3. #33

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    Quote Originally Posted by northernladuk View Post
    How the hell would Andy know what outages would cost the business. No disrespect to Andy but he is an agent.
    Hmm, as part of my role I have supported implementations of SAP, Siebel and an EDW. Believe me, I can cut it with a fair few of you in understanding costs of things when they don't go to plan.

    Quote Originally Posted by Taita View Post
    Most insurances have pre-set limits. Corporates and Public Sector organisations stipulate minimum levels of insurance. Why should agencies not do the same?
    to be fair they tend to specify our level of liability which we always try and cap within insurable levels.

    Quote Originally Posted by Taita View Post
    The wording, Andy, is 'inadequate'. Get real and put a figure on the insurance level you require.....then we all know where we stand!

    Why would I be 'lucky' to secure an assignment with one of your brands? Is it something I said?
    Default=

    £1m Professional Indemnity
    £5m Public Liabilty
    £10m Employers Liability

    You'd be lucky if you got an assignment with us. You could have a conversation with a team who understand contracting, look to deliver a great service to you and would be happy to discuss a fair and reasonable clause around insurance.

  4. #34

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    Quote Originally Posted by Andy Hallett View Post
    You could have a conversation with a team who understand contracting, look to deliver a great service to you and would be happy to discuss a fair and reasonable clause around insurance.
    And then find that the job doesn't exist because they work for Hoaxley.
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