Client saying insurance is "Compulsary" Client saying insurance is "Compulsary"
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  1. #1

    Nervous Newbie


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    Default Client saying insurance is "Compulsary"

    Hello everybody,

    I am doing a contract at an Agency, where I am being told it is "compulsory" for me to have insurance to work there. I was not told this before hand.

    More so, after doing bits of reading, I see it is no legal obligation, and more so the insurance they want me to have is
    "Public Liability indemnity (£1,000,000 per event) and Professional Indemnity insurance (£1,000,000 per event)"

    It is all excessive for a 2 week contract where I am going into the clients office.
    Is there any legal/technical jargon I can tell the company to make them omit this demand, or is it simply a case of they are a private company and they can have employ whatever criteria they want? Ultimately it does not make sense and is surplus to requirement.

    Thanks for reading guys

  2. #2

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by TAOC View Post
    Hello everybody,

    I am doing a contract at an Agency, where I am being told it is "compulsory" for me to have insurance to work there. I was not told this before hand.

    More so, after doing bits of reading, I see it is no legal obligation, and more so the insurance they want me to have is
    "Public Liability indemnity (£1,000,000 per event) and Professional Indemnity insurance (£1,000,000 per event)"

    It is all excessive for a 2 week contract where I am going into the clients office.
    Is there any legal/technical jargon I can tell the company to make them omit this demand, or is it simply a case of they are a private company and they can have employ whatever criteria they want? Ultimately it does not make sense and is surplus to requirement.

    Thanks for reading guys
    Are you working through an umbrella company or through your own Ltd?
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  3. #3

    Fingers like lightning


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    Quote Originally Posted by TAOC View Post
    Hello everybody,

    I am doing a contract at an Agency, where I am being told it is "compulsory" for me to have insurance to work there. I was not told this before hand.

    More so, after doing bits of reading, I see it is no legal obligation, and more so the insurance they want me to have is
    "Public Liability indemnity (£1,000,000 per event) and Professional Indemnity insurance (£1,000,000 per event)"

    It is all excessive for a 2 week contract where I am going into the clients office.
    Is there any legal/technical jargon I can tell the company to make them omit this demand, or is it simply a case of they are a private company and they can have employ whatever criteria they want? Ultimately it does not make sense and is surplus to requirement.

    Thanks for reading guys
    Compulsory might not be a legal obligation. Compulsory might "its the policy and you don't get the gig unless you comply"

    I suspect its the latter.

    Whether that is excessive is up to you - how much is the 2 weeks worth to you?

    Those with a very risky outlook on life would just doctor one in PDF and send it over. I'd not recommend that.

  4. #4

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    Is it a legal requirements for a business to have insurances in place to protect it's clients - No

    Is it a reasonable requirement for the client to dictate - Yes.

    Can they refuse to take you if you say no - Of course

    Is it good business sense to have insurances in place regardless of clients requirements - Yes.

    Although there are strong arguments PI is sham because no contractor has ever claimed on it. That said if we want to be businesses then why not act like one. We can't just pick and chose what we want and be called a business as well.

    Yes 2 weeks it is excessive because you are thinking about it wrong. You should have it as a business, and I'm surprised that any other contracts you've had haven't stipulated insurance. If they have then you've bought it already and the whole thing becomes a non issue.

    Your problem is your perception that you are being forced by a client to have it for 2 weeks which is wrong. That's not how year long business policies operate.

    It's 200 quid as well... so hardly excessive.

    But if you don't want the gig then post the details on here. We'll take it.
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  5. #5

    More time posting than coding


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    Quote Originally Posted by northernladuk View Post
    Is it a legal requirements for a business to have insurances in place to protect it's clients - No

    Is it a reasonable requirement for the client to dictate - Yes.

    Can they refuse to take you if you say no - Of course

    Is it good business sense to have insurances in place regardless of clients requirements - Yes.

    Although there are strong arguments PI is sham because no contractor has ever claimed on it. That said if we want to be businesses then why not act like one. We can't just pick and chose what we want and be called a business as well.

    Yes 2 weeks it is excessive because you are thinking about it wrong. You should have it as a business, and I'm surprised that any other contracts you've had haven't stipulated insurance. If they have then you've bought it already and the whole thing becomes a non issue.

    Your problem is your perception that you are being forced by a client to have it for 2 weeks which is wrong. That's not how year long business policies operate.

    It's 200 quid as well... so hardly excessive.

    But if you don't want the gig then post the details on here. We'll take it.
    THIS.

    I don't get why you don't have business insurance for your business. It's part and parcel of running a business.

    Clients generally want insurance because it then means you're covered should sh1t happen and they need to make a claim rather than dragging your business through courts to reclaim costs...

  6. #6

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    Quote Originally Posted by northernladuk View Post
    .

    It's 200 quid as well... so hardly excessive.

    .
    Mine is like $25/month for that same level and with a decent (I think) company. Just take it for a month and then cancel, but you should already have it yes.

  7. #7

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by AddingValue View Post
    Mine is like $25/month for that same level and with a decent (I think) company. Just take it for a month and then cancel, but you should already have it yes.

    You might want to check that. It's most likely 25 per month based on an annual cost - i.e. it's 300 per year.
    If you cancel without paying the full annual cost, the insurance is void.
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  8. #8

    Should post faster


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    Here I am thinking Insurance, Accountant fee, VAT, Corporation Tax, Account Filing, (taking Dividends) are regular things in running a business.

    I am really curious to see how you get on with contracting after April.
    Last edited by BigDataPro; 20th February 2020 at 13:58.

  9. #9

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    "Doing a contract." Kinky, is she a goer?

    Northern Lady?

    qh
    He had a negative bluety on a quackhandle and was quadraspazzed on a lifeglug.

    I look forward to your all knowing and likely sarcastic and unhelpful reply.


  10. #10

    Contractor Among Contractors

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    It is a bit much

    I've paid for one to use on every contract I've done

    For 2 weeks... you may want to get the certificate, ring up and cancel! Don't put it through your expenses unless you're PC ;-)

    Sods law though... I wouldn't

    That said - I usually get a few clients worth out of a year of insurances so I don't really see it as something I do for one person - after the 2 weeks are up, you'll need it for gig 2, gig 3, gig 4 etc - they all ask for it and even if they didn't (not had one yet who hasn't) then it still doesn't harm you.

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