Professional Indemnity Insurance

**expat** · 8 August 2006, 12:37

Originally posted by Millwall

I am currently negotiating a contract and the company offering me work are asking that I have Professional Indemnity insurance of £5m. All the websites I have looked at only offer cover to £2m. Is £5m excessive and do you know anyone who can offer reasonable priced cover on £5m.

Thanks

They're taking the piss. Get them to pay for it.

**Pondlife** · 8 August 2006, 13:02

Originally posted by expat

They're taking the piss. Get them to pay for it.

Agreed £5M is way above the norm. What is it you're doing for them to require that much cover?

**Millwall** · 8 August 2006, 13:04

They are a software company and I am just going to their clients training, setup, implementation, data conversion, project management etc.

**DimPrawn** · 8 August 2006, 13:05

£5M

Crikey. When I started it was £100K and then up to £1M.

A proper indemnity for £5M is going to be costly. Maybe a grand or more a year.

**Newby** · 8 August 2006, 13:12

I have come across these clauses before, its mega money to get 5 million, and one or two providers do this at a premium(but they are the S*i*e ones too!). As in everything it is up for negotiation. If you put forward that you have 1 million in cover, they are likely to accept it.

**expat** · 8 August 2006, 13:37

Originally posted by DimPrawn

£5M

Crikey. When I started it was £100K and then up to £1M.

A proper indemnity for £5M is going to be costly. Maybe a grand or more a year.

When I started, and for most of my career, it was unknown. Now it's being bid up, because it costs nothing to the guy who specifies it.

Get them to pay, see how much they think is needed.

**The Lone Gunman** · 8 August 2006, 14:06

Not an expert here this is just an opinion.

Most of us have been working with 1M cover on projects paying 100K. That seems a reasonable markup on what we produce. If I cock up then it is possible that recovery will cost that, more if it reaches production and brings the aircraft down.

Would it not be reasonable to therefore ask for 500K payment for a project worth 5M?

**Money Money Money** · 8 August 2006, 14:28

Originally posted by Millwall

I am currently negotiating a contract and the company offering me work are asking that I have Professional Indemnity insurance of £5m. All the websites I have looked at only offer cover to £2m. Is £5m excessive and do you know anyone who can offer reasonable priced cover on £5m.

Thanks

Prosperity4 gives you £5m Proffesional Indemnity insurance.

Come on lets here it...................................

**Millwall** · 8 August 2006, 14:47

Originally posted by Money Money Money

Prosperity4 gives you £5m Proffesional Indemnity insurance.

Come on lets here it...................................

Do you use Prosperity4? Do you recommend them?

EDIT > A thread search brings up not very encouriging results about P4

Professional Indemnity Insurance