PI Insurance and Legal for LTD

[easyrider]

Fellow contractors...

I set up the LTD company 2years while ago and my first contract stipulated that I have PI insurance for 1 million squids - - so I got the insurance.
I am wondering if it is really worth the spend though as no other contract has stipulated it - I do 3rd/4th line system admin and SQL DBA stuff.

Another issue is my rate has gone up by a tenner an hour but the insurers state that they need to know of this - presumably so they can get away with charging me more for the insurance.
Is it worth telling 'em ??

Legal insurance at £75 I have also got - what are readers opinions of the worth or neccessity of this -- the total cost is about £300 or so , of course this is a totally legitimate business expense.

Thanks for reading, happy contracting.

[oraclesmith]

I am wondering if it is really worth the spend though as no other contract has stipulated it - I do 3rd/4th line system admin and SQL DBA stuff.

If you **** up you get sued for however much the client lawyers think they can get. You can do a lot of damage if you admin/DBA live systems - eg. loss of business. It may not be a requirement of the contract, but PI insurance is pretty much a given if you're freelance, in my opinion. Tip: if you have the choice, don't mention in the contract how much cover you have, or you may upset your insurer.

Another issue is my rate has gone up by a tenner an hour but the insurers state that they need to know of this - presumably so they can get away with charging me more for the insurance.
Is it worth telling 'em ??

Read the terms and conditions. If it says you must tell them, then you have to. My insurer doesn't ask my rate, but I guess some do because a higher rate increases the possible claim for maybe contracting another freelancer to put things right. They probably won't increase your premium. You can always find another insurer. The PCG do good insurance bundles.

Legal insurance at £75 I have also got - what are readers opinions of the worth or neccessity of this -- the total cost is about £300 or so , of course this is a totally legitimate business expense.

Presumably this is legal expenses cover (PAYE/IR35 etc). You seem to be doing work which MAY fit the profile of a disguised employee so, in my opinion, you need this insurance. Especially if you pay yourself divi's and a low salary.

Also, you should get public liability and employers liability insurance bundled in, in my opinion. The employers liability insurance is just a personal preference of mine. I like the flexibility of being able to sub-contract/substitute without any subbie claiming to be an employee, and I get some office equipment insurance included. It's an essential if you have employees of any type - even just someone to do the books or a bit of admin for you.