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Query re Group PI vs Personal PI for IR35

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    Query re Group PI vs Personal PI for IR35

    Hi

    I have a personal PI policy. I'm just about to take up a six month contract where the recruitment agent has a Group PI policy, under which I will be covered. I had intended to lapse my personal PI policy, in order to save money; however, the recruitment agent said that some accountants advised their clients to maintain a personal PI policy for IR35 reasons. Does anyone have any personal experience of this? I assume that to some degree, it's open to interpretation.

    #2
    Aren't you via a LTD? Personal PI? Agent's PI?

    Surely if you are talking IR35 and being a business personal PI is actually a shooting yourself in the foot?

    What does it say in your contract about insurances?

    If you think using an agents PI to cover your business activities is acceptable for IR35 you need to have another read up on it I'd say. I'm not even getting why the agent is willing to cover the risk of you making a cock up. How does that work? This isn't Public Sector or anything is it?
    Last edited by northernladuk; 4 April 2017, 10:40.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by mediacity View Post
      Hi

      I have a personal PI policy. I'm just about to take up a six month contract where the recruitment agent has a Group PI policy, under which I will be covered. I had intended to lapse my personal PI policy, in order to save money; however, the recruitment agent said that some accountants advised their clients to maintain a personal PI policy for IR35 reasons. Does anyone have any personal experience of this? I assume that to some degree, it's open to interpretation.
      Are you sure ? What will happen when you take on your next contract if it is not with the same agent ?
      ______________________
      Don't get mad...get even...

      Comment


        #4
        Is your agent's policy going to cover previous work, or just the current contract? You need to be covered if a claim arises after the contract is finished.

        Comment


          #5
          Originally posted by kaiser78 View Post
          Are you sure ? What will happen when you take on your next contract if it is not with the same agent ?
          Yes, I am sure. At the end of the current contract I would need to take out a personal PI policy again, assuming it was not with the same agent.

          Comment


            #6
            Originally posted by northernladuk View Post
            Aren't you via a LTD? Personal PI? Agent's PI?
            Limited company

            Originally posted by northernladuk View Post
            Surely if you are talking IR35 and being a business personal PI is actually a shooting yourself in the foot?
            I don't understand what you mean by this, please state the reasons why this would be shooting myself in the foot.

            Originally posted by northernladuk View Post
            If you think using an agents PI to cover your business activities is acceptable for IR35 you need to have another read up on it I'd say. I'm not even getting why the agent is willing to cover the risk of you making a cock up. How does that work? This isn't Public Sector or anything is it?
            This is normal for this agent. The agent is placing contractors, and also members of his own permanent staff, into the Company. If there were a claim against work that I did, the company would claim against the agent's PI. He has confirmed that contractors are covered under his group policy.

            My question is: if I were ever the subject of an IR35 investigation, would the fact that I don't have my own PI count against me - that I'm being covered under the agent's Group PI scheme instead. If it would count against me, why?

            This is not Public Sector.

            Comment


              #7
              You are confusing people.

              PI is in your business's name and covers your business not you personally as individual.

              As faults can be found in your company's work after your company has finished one contract and started another contract with a different company, you need to ensure your business has continual cover.
              "You’re just a bad memory who doesn’t know when to go away" JR

              Comment


                #8
                No way in hell would I be using the agents PI... Even if it was kosher. Which I still doubt.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by mediacity View Post
                  Limited company



                  I don't understand what you mean by this, please state the reasons why this would be shooting myself in the foot.



                  This is normal for this agent. The agent is placing contractors, and also members of his own permanent staff, into the Company. If there were a claim against work that I did, the company would claim against the agent's PI. He has confirmed that contractors are covered under his group policy.

                  My question is: if I were ever the subject of an IR35 investigation, would the fact that I don't have my own PI count against me - that I'm being covered under the agent's Group PI scheme instead. If it would count against me, why?

                  This is not Public Sector.
                  Their PI insurance will cover their arse, not yours.
                  https://uk.linkedin.com/in/andyhallett

                  Comment


                    #10
                    Originally posted by SueEllen View Post
                    You are confusing people.

                    PI is in your business's name and covers your business not you personally as individual.

                    As faults can be found in your company's work after your company has finished one contract and started another contract with a different company, you need to ensure your business has continual cover.
                    Yes, you are correct, and well summarised. I take all your points. However, this is not the question I am asking here. The question I am asking is this: in the event of an investigation by HMRC to determine compliance with IR35 regulation, does the fact that a contractor's ltd company not having its own PI, but is a member of a Group PI scheme instead, mitigate against the ltd company in that investigation?

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