Professional indemnity insurance mandatory?
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    Unhappy Professional indemnity insurance mandatory?

    1. An introduction agency is telling me my company must have professional indemnity insurance, employers liability and public liability insurance. They imply it is a LEGAL requirement. I do not see any legal requirement from the HMRC website. Is it just a commercial request?

    2. Also, the contract they have drawn up mentions their sister introduction agency in a European country as the CLIENT and not the end-user company for whom I will be assigned by my company to perform project management. The contract does not mention the end user at all with whom I would be working. They want my company to be liable should it infect the CLIENT systems with a virus say. But we are never going to be near the client systems. The sister introduction agency is only there to comply with some requirement in that country I am told. Obviously then if we infect the end-user there is no issue for us because there is no clause related to the end user?

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    Some things in Moderation

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    What does it say in the contract and where is the contract based - the UK, the EU or outside?

    It is not a legal requirement in the UK, but if the contract states that you must have PPI then you must have it.

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    Should post faster

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    Default Just do IT....

    Quote Originally Posted by jejo View Post
    1. An introduction agency is telling me my company must have professional indemnity insurance, employers liability and public liability insurance. They imply it is a LEGAL requirement. I do not see any legal requirement from the HMRC website. Is it just a commercial request?

    2. Also, the contract they have drawn up mentions their sister introduction agency in a European country as the CLIENT and not the end-user company for whom I will be assigned by my company to perform project management. The contract does not mention the end user at all with whom I would be working. They want my company to be liable should it infect the CLIENT systems with a virus say. But we are never going to be near the client systems. The sister introduction agency is only there to comply with some requirement in that country I am told. Obviously then if we infect the end-user there is no issue for us because there is no clause related to the end user?

    I know what you mean, from bits you've mentioned, sounds very similiar to my present contract, if it is, just do it, pay the premium monthly, claim it as expense, after you leave, you can decide whether to carry on paying the premium or not.
    Don't let a little thing like this prevent you from getting work......take it from someone, who was on the bench so long, buttchecks have left an impression..........

    By the way, contract you're considering, any thing to do with men at sea?....you will know what I mean.....

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    Default Professional Indemnity Insurance

    It is worth noting that PI insurance is on "claims made" basis you must keep it up to protect you from past claims. It only costs around a tenner a month and if you are in IT can get immediate cover on line by answering 5 questions.

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    My post count is Majestic

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    Erm.. is't it something like £250 per year??? down in the 100's in reality.... Bit of a no brainer...
    'CUK forum personality of 2011' - Winner - Yes really!!!!

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    So what does that liability clause mean?
    that if things f%*k up in the project I will be responsible for paying the damages back to the company I am contracting at? Sorry I am new to this.

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    I live on CUK

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    Quote Originally Posted by kellycell View Post
    So what does that liability clause mean?
    that if things f%*k up in the project I will be responsible for paying the damages back to the company I am contracting at? Sorry I am new to this.
    You haven't written the liability clause in the contract only your interpretation of it.

    If you want someone to give you a good indication* of what your liability clause means then you need to post the exact liability clause obviously removing names.

    *We are not legal experts and you aren't paying us so take everything with a pinch of salt.

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    Quote Originally Posted by SueEllen View Post
    You haven't written the liability clause in the contract only your interpretation of it.

    If you want someone to give you a good indication* of what your liability clause means then you need to post the exact liability clause obviously removing names.

    *We are not legal experts and you aren't paying us so take everything with a pinch of salt.
    Here it is, thank you very much:

    "The Consultancy shall indemnify the Client against all loss and liability suffered or incurred as a result of the Consultantís acts or omissions. The total liability under this clause shall not exceed the total sums payable for the Services."

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    There is no legal requirement to carry this insurance. The agents are not being entirely truthful.

    The only insurance you are legally bound to have is Employer's Liability IF your co has two employees employed doing the business. Your wife as director doesnt count!

    A number of agents are now saying their clients want this insurance cover. I've just had to take some PI and PL insurance to the tune of about £190 a year I think. I refused to take EL as Im the only employee of the co.

    That said, I wouldnt lose a contract over having to get the insurance.

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    Quote Originally Posted by BolshieBastard View Post
    There is no legal requirement to carry this insurance. The agents are not being entirely truthful.

    The only insurance you are legally bound to have is Employer's Liability IF your co has two employees employed doing the business. Your wife as director doesnt count!

    A number of agents are now saying their clients want this insurance cover. I've just had to take some PI and PL insurance to the tune of about £190 a year I think. I refused to take EL as Im the only employee of the co.

    That said, I wouldnt lose a contract over having to get the insurance.
    For the newbies here do you mind explaining what PI, PL are?


    Admin note - more info here:

    Professional liability insurance
    Public liability insurance
    Last edited by Contractor UK; 13th October 2011 at 14:13.

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