PI and PL insurance covering 6 years following 6 months contract end PI and PL insurance covering 6 years following 6 months contract end
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  1. #1

    Nervous Newbie


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    Sep 2019
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    Default PI and PL insurance covering 6 years following 6 months contract end

    Hi All,

    I am in process of signing up a new 6 months contract. There is a clause asking for 6 years PI and PL insurance cover post contract end date. This is to cover any damages against data protection, IRP breach or confidentiality breach.
    I have not seen such a long term cover requirement following end of a contract engagement. I would expect it to be to cover the period of engagement or maybe 6 months post termination of the contract.

    Is this something common? I have been told its industry standard practice, however I have not seen this in my plus years of contracting.

    Is there any service that offers reviews of contracts? (other than IR35 reviews)

    Any feedback will be appreciated.

    PL= Public liability Insurance
    PI = Professional Indemnity Insurance

    Regards

  2. #2

    Super poster

    Lance's Avatar
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    Sep 2013
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    Default

    I've never seen it either.

    To be honest I'd not worry about it anyway.
    They can't enforce yourCO to have it after the contract is terminated.
    If you carry on contracting you'll have it anyway.
    If you don't carry on you'll close your company so any liability closes with the company.

    You can tell them you'll not agree to it and see how hard they push. I suspect you'd not want to lose the work for the sake of a clause that'll almost certainly ever be used.
    See You Next Tuesday

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