Unemployment Insurance

**zamzummim** · 20 July 2009, 08:25

Last time I looked on the PGC I saw something mentioned about that, I thought it was strange, but didn't read the details... come to think of it a lot of large consultancies would take a sort of client contract insurance just in case things go wrong with very large client accounts, but that's not called unemployment insurance !!! Go read at the PGC site and see if you like the Ts&Cs, and let us know

**SteveMcadden** · 20 July 2009, 08:30

This is a very inetresriung topic - If this was allowed then I think it would be a no brainer to sign up for this kind of insurance.

Has anyone on here signed up and managed to get paid out when they needed to?

Thanks

**malvolio** · 20 July 2009, 09:37

I may be being dim (quiet at the back), but how does a freelance contractor qualify for unemployment insurance???

And to answer the original question, even if you did, no it's not cost effective, the premiums are too expensive relative to the cover.

As for the PCG question - sure you don't mean the £7500 fee protection cover you get with PCG Plus for free against agency insolvency?

**zamzummim** · 20 July 2009, 09:46

The one I saw was income protection insurance, no idea what's it about though!!

**cojak** · 20 July 2009, 09:48

Now I'm beginning to think sockpuppetry..

Wrong Forum!

**DaveB** · 20 July 2009, 09:48

Originally posted by joey122 View Post

I am not sure if this has been asked on this forum before, but I ve been lurking on here for a while now and searched but could not find anything.

Does anyone know whether unemployment insurance would cover contractors getting sacked early?

I have heard good things about the PostOffice insurance contract but do not know whether this covers contractors.

1. You're a contractor, you don't get sacked becasue you are not employed by the client to begin with.

2. If you did fire yourself from your own ltd co, any insurance would only pay out on the value of the salary you had been paying yourself, in most cases this is around £6-7k a year. It wouldnt cover you for Dividend Payments.

3. If you work through a Brolly, the Brolly would have to actually sack you for you to have any chance of making a claim and that is pretty much unheard of in my experience.

4. If you read the small print these policies don't cover freelancers anyway.

**thunderlizard** · 20 July 2009, 09:50

Unemployment wouldn't cover a contractor being "sacked" by a client, because there would be no loss of employment in that situation.

You won't find an off-the-shelf insurance product to cover the cancellation of a commercial contract because the possibilities are too broad. Big contracts sometimes do get insured so if you have a regular broker or insurer, see what they think. Malvolio's probably right that it will be far from a "no brainer" in cost efficiency terms.

**malvolio** · 20 July 2009, 09:50

It's mentioned on the page on what insurances freeelancers need to know about, but it's not listed as one that's needed. PCG dont' sell it anyway (PCG don't actually sell insurance at all, come to that), but obviously you can get a member discount with some suppliers.

Unemployment Insurance