PI Insurance Advice

**Pondlife** · 13 July 2006, 08:50

Originally posted by ash

Hi and congrats on a great site

I've come over from Australia and have now landed my first contract, starting on Monday. The info I've dug up so far indicates that I should take out some PI cover, particularly as I'm doing sole redevelopment on a fairly critical component of the company's system.

Would the panel recommend taking out cover, and for what amount? I was considering taking out a policy providing up to 1 million pounds cover.

Any advice appreciated.

I think that £1M individual cover will cost about £500 where as £100K individual cover with access to aa shared pot of £1M will cost about £200.

I haven't heard of any individual ever having to claim as the client would have to proove financial loss as a direct result of you work. Although I understand that some clients insist on it.

These are just my observations and IANAL.

HTH

**Pondlife** · 13 July 2006, 09:39

Originally posted by zeitghost

Join the PCG & get it cheaper...

Think that was through PCG.

**ash** · 16 July 2006, 15:22

I will look into joining PCG, thanks for the tip.

As for whether I should take out insurance or not, do most of you only take out individual cover if the client mandates it? I am currently contracted through an umbrella company (administered by Churchill Knight) until my HSMP visa comes through, after which I will be converting to my own Ltd Company (administered by Churchill Knight). The umbrella company does not have PI cover.

I agree it may be difficult for a client to make and prove any claim against me that I was the sole cause of damages, but I don't know how often that sort of case happens - if ever at all. As always with insurance, I guess it's a matter of assessing the likelihood of needing it.

**Pondlife** · 16 July 2006, 16:08

Originally posted by ash

As always with insurance, I guess it's a matter of assessing the likelihood of needing it.

I think you've answered your own question really. I don't know anyone whose house has burnt down but everyone I know has building insurance.

For the sake of a tax detuctable expense of £200 it's a pretty simple decision.

HTH

PI Insurance Advice