Professional Indemnity insurance

[kobie]

Hi,
I've just picked up a couple of days work from an old employer.
They are keen for me to do it and I want to keep them sweet as there maybe more work.
They wanted me to go through an agency but it the end they have said that they will treat me as a Supplier.

Now their procurement dept have said that I need PI insurance for £1m which per annum is about 800 quid. The other contracts that I have don't require PI.

Does anyone know where I can get PI insurance on a weekly basis ?
There are some people who offer this but you need to be contracted through an agency. Any advice appreciated.
cheers
K.

[DimPrawn]

I have £1M PI insurance. The premium for a yr cost me £500.

I use Bishops insurance and risk management.

01233 649000 or [email protected]

[threaded]

kobie: It's a bit daft working as a contractor and not having insurance. Probably illegal as well.

[kobie]

I've contracting for circa 8 years and never even been asked for it - I'd be supprised if all that many contractors have PI.

If things did go pear-shaped then my understanding is that they could go after my Ltd company and make it bankrupt, hence the need for PI.

So if you have two ltd companies working on a project and there is a disaster, one has PI and the other doesn't and assuming that the client likes a bit of sue'ing then I would presume that they would go after the ltd with PI.

K.

[swamp]

PI insurance is an IR35 pointer.

[XLMonkey]

Are you talking about Professional Indemnity Insurance, or Public Indemnity Insurance?

You should be able to get Public Indemnity insurance along with your Employers Liability Insurance. c. 120-150 pa. It just indemnifies them against accidents and damage that occur in the course of the work.

Professional Indemnity is much more expensive (as in the 500-800 mark), and covers against professional incompetence/negligence. However, it should be unnecessary since you're only doing a couple of days work and I assume that there is a limit of liability (set at the value of the work) in the contract between your company and theirs?

[Paco]

You can get PI insurance from £165. Try talking to the clients procurement department to see if you can get the required amount of cover reduced. I've been in a similar position before and it turned out their legal woman had just pulled a figure (£5M!) out of the air. They had no problem reducing it to a more sensible level. Worth a try...