Agency asking for PI insurance Agency asking for PI insurance
Posts 1 to 10 of 10
  1. #1

    Nervous Newbie


    Join Date
    Dec 2011
    Posts
    2

    Default Agency asking for PI insurance

    Hi, i started a contract a month ago and have now been asked by the agency to take out professional indemnity insurance cover of £1m.

    The terms in the contract don't specify any level just some waffle along the lines of "maintain provision of adequate Professional Indemnity Insurance in respect of the contractor, representative and provision of services."

    The client has said they don't require this at all, so i'm not that keen on taking it out as it's quite expensive and i've never been asked for this cover before.

    Any advice greatly appreciated.

    Thanks

  2. #2

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    39,484

    Default

    It is not expensive at all. QDOS does it for 200 quid and it is tax deductable. It is also not uncommon to be asked for it.

    Go get it, show agent, get on with contract. End of..
    Last edited by northernladuk; 6th December 2011 at 20:48.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  3. #3

    Super poster


    Join Date
    Feb 2010
    Location
    London, UK
    Posts
    3,992

    Default

    Quote Originally Posted by mickhucknall View Post
    The client has said they don't require this at all, so i'm not that keen on taking it out as it's quite expensive and i've never been asked for this cover before.
    If your contract requires it then you should really have it. Do a search here - there are lots of providers and it isn't THAT expensive.

  4. #4

    My post count is Majestic

    MarillionFan's Avatar
    Join Date
    Jul 2005
    Location
    .
    Posts
    35,751

    Default

    Quote Originally Posted by northernladuk View Post
    It is not expensive at all. QDOS does it for 200 quid and it is tax deductable. It is also not uncommon to be asked for it.

    Go get it, show agent, get on with contract. End of..
    Oh come on. Are you telling us you've got PI insurance now as well?
    What happens in General, stays in General.
    You know what they say about assumptions!

  5. #5

    My post count is Majestic

    AtW's Avatar
    Join Date
    Jul 2005
    Posts
    50,984

    Default

    It's very cheap, probably means they'll never pay out but at least you'd have peace of mind for a bit.

  6. #6

    My post count is Majestic

    MarillionFan's Avatar
    Join Date
    Jul 2005
    Location
    .
    Posts
    35,751

    Default

    Quote Originally Posted by AtW View Post
    It's very cheap, probably means they'll never pay out but at least you'd have peace of mind for a bit.
    Find me a contractor who has ever needed to use his PI insurance and I'll shut up about it being a massive rip off for contractors.
    What happens in General, stays in General.
    You know what they say about assumptions!

  7. #7

    Nervous Newbie


    Join Date
    Dec 2011
    Posts
    2

    Default

    Ta for the qdos tip. I got a quote from (Hiscox), as recommended by the agency and it came up as £415. Other quotes were as high as £800!?

    As it's only a short term contract, i'll most likely just get the cover, then cancel it once i've left.

    Cheers all for the advice.

  8. #8

    Double Godlike!

    malvolio's Avatar
    Join Date
    Jul 2005
    Location
    Walking in the garden, dreaming of Olivia...
    Posts
    11,249

    Default

    Quote Originally Posted by MarillionFan View Post
    Find me a contractor who has ever needed to use his PI insurance and I'll shut up about it being a massive rip off for contractors.
    Well there's the guy who got sued for £5m for losing a backup not so long ago...

    Quote Originally Posted by mickhucknall
    Ta for the qdos tip. I got a quote from (Hiscox), as recommended by the agency and it came up as £415. Other quotes were as high as £800!?
    It's based on turnover and market. £400-ish for hiscox is about par for most contractors. QDOS works equally well but isn't the same cover, although it's enough for what we need.

    As it's only a short term contract, i'll most likely just get the cover, then cancel it once i've left.
    Bad idea. It needs to be in place when you get sued, not when you are working. It's peanuts to buy, it's another string to your IR35 defence, so just buy it and forget it.
    Blog? What blog...?

  9. #9

    Contractor Among Contractors

    CheeseSlice's Avatar
    Join Date
    Mar 2009
    Location
    Melting on your hamburger
    Posts
    1,686

    Default

    Quote Originally Posted by malvolio View Post
    Bad idea. It needs to be in place when you get sued, not when you are working. It's peanuts to buy, it's another string to your IR35 defence, so just buy it and forget it.
    I think it depends on the type of policy and firm selling the cover, although I'd agree it should be in effect when you get sued.

    You will find that some PIs include full retrospective cover, and others dont.
    Retrospective can give you cover for all previous work, even for work done before taking out the policy.
    Others may only cover work done whilst the policy was active.

  10. #10

    Fingers like lightning


    Join Date
    May 2011
    Location
    Berkshire, UK
    Posts
    711

    Default

    Quote Originally Posted by MarillionFan View Post
    Oh come on. Are you telling us you've got PI insurance now as well?
    Are you telling us you would breach the terms of a contract by not having it?

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •