Company Insurance

[Kevin1908]

I have just started a contract at very short notice. The client had somebody leaving and I was not working so to get a hand over I started without an interview or seeing the contract. This was only supposed to be a 3 month job.
After submitting my first time sheet the payroll dept of the agency has asked to see the VAT registration certficate and company insurance certificate.
I have sent them copies of the VAT certificate and the Employers Liability certificate.
They are now asking to see Professional Indemnity and Public liability. I have Public Liability up to £2m but not the £5m specified and don't have Professional Indemnity. The only time that this has come up before in 34 years the agent said that I was covered by their insurance.
It now appears that I will not get paid. On the basis that since I didn't meet the contract requiements is the contract invalid and can I walk out without notice. The client will be pissed but I don't work for nothing especially since my last pay check was from before Christmas. I am happy to work for the client direct if they take over the contract.
I have never heard of an agency insisting on any company insurance before.

[doodab]

I have never heard of an agency insisting on any company insurance before.

Professional Indemnity Insurance has been a requirement in nearly every contract I have had. I can only suggest that if you haven't seen it in 34 years it's because you don't read your contracts properly.

[eek]

If it is not explicitly mentioned as required within your contract then you are not required to have it (although mine is £200 a year for £1m professional indemnity so I don't mind paying it).

mind you I wouldn't have started work without a IR35 vetted contract....

[northernladuk]

So you have PL to insure against people getting injured on your premises (that you don't have). You have EL to insure you against Employees getting injured (which you don't have) but you don't have PI to protect yourself against claims from clients relating to the work you do for them.

How the hell did you end up in that situation???

That said I found an interesting snippet which I bet many tax dodging husband and wife sets up didn't know....

Employers Liability Insurance is legally required in some potentially unexpected circumstances – for example, where a Limited Company contractor employs their partner/spouse to carry out clerical work or bookkeeping for the business.

Employers Liability - Employers Liability insurance - Contractor Insurance - Contractors - Qdos Consulting

I wonder how many people didn't know that.

[DirtyDog]

It now appears that I will not get paid. On the basis that since I didn't meet the contract requiements is the contract invalid and can I walk out without notice. The client will be pissed but I don't work for nothing especially since my last pay check was from before Christmas.

What does the contract say about termination? Do you think that a lack of insurance is a sufficiently bad breach to warrant termination of the contract or not (ie. is it a breach of condition or a breach of warranty)?

I am happy to work for the client direct if they take over the contract.

Do you think the client wants someone who isn't insured to cover their mistakes if you screw up?

Anyway, if there is a clause in the contract between agency and client to stop you going direct, then you can go direct with no penalty 8 weeks from the end / 14 weeks from the start, whichever is later because you didn't opt out of the agency regulations.

[DirtyDog]

That said I found an interesting snippet which I bet many tax dodging husband and wife sets up didn't know....

If they are an employee, then you need insurance; if they are an officer of the company without an employment contract then you wouldn't.

[eek]

If they are an employee, then you need insurance; if they are an officer of the company without an employment contract then you wouldn't.

I doubt many husband and wife companies have both people as directors.....

[Kevin1908]

A few points in reply. Why would the client take me to court for screwing up. All my work is vetted and then goes out under the the name of the Project Manager. It isn't as if I am personally signing off the construction of a bridge or the commissioning of a railway signalling system.
I don't have a problem if the agent explicitly requiring this then I can add £100 to the day rate to cover the requirement. It is not a requirement by the client, just the agent. Therefore for the work that is required and to keep costs down the client takes on the responsibility and signs off on the final output.
Given that I was doing both the agent and the client a favour starting in advance of seeing the contract as a favour to them may be I should have said screw you, I want to see a contract, scrutinise it, renegotiate it, then start 2 or 3 weeks after the required start date and see the project go down the pan.
What the agents web site says:
Honesty and Integrity – We will give you an honest view and representation of what is available on the market.
Urgency – We understand that speed is key and critical to your needs.
Trust and Respect – We firmly believe in establishing and building relationships by gaining your trust and your respect. We want to work with you on a long-term basis.
Teamwork – xxxxxx understands that each assignment will benefit from us working in partnership with you.
Well fool me for trusting them.
There will now be one pissed off client whan I put my notice in.
Lesson learnt. The next time an agent phones up and says the client is in the do do can you start tomorrow I will say screw you.
.

[stek]

A few points in reply. Why would the client take me to court for screwing up. All my work is vetted and then goes out under the the name of the Project Manager. It isn't as if I am personally signing off the construction of a bridge or the commissioning of a railway signalling system.
I don't have a problem if the agent explicitly requiring this then I can add £100 to the day rate to cover the requirement. It is not a requirement by the client, just the agent. Therefore for the work that is required and to keep costs down the client takes on the responsibility and signs off on the final output.
Given that I was doing both the agent and the client a favour starting in advance of seeing the contract as a favour to them may be I should have said screw you, I want to see a contract, scrutinise it, renegotiate it, then start 2 or 3 weeks after the required start date and see the project go down the pan.
What the agents web site says:
Honesty and Integrity – We will give you an honest view and representation of what is available on the market.
Urgency – We understand that speed is key and critical to your needs.
Trust and Respect – We firmly believe in establishing and building relationships by gaining your trust and your respect. We want to work with you on a long-term basis.
Teamwork – xxxxxx understands that each assignment will benefit from us working in partnership with you.
Well fool me for trusting them.
There will now be one pissed off client whan I put my notice in.
Lesson learnt. The next time an agent phones up and says the client is in the do do can you start tomorrow I will say screw you.
.

What if you drop one the clients computers when you are putting it on a users desk, who's insurance pays?

[stek]

Can't believe this opportunity to rip the OP the shreds is being wasted....

General just isn't cutting it anymore.....