Insurance

[benben5555]

Hi,

I've secured a position through an agency and having just read the contract it mentions having appropriate insurances in place. Before taking this job I spoke to a few different agencies and they gave different views about the need for my company to have its own insurance, generally they didn't seem to actually know and were just guessing in my opinion.

Is it generally accurate that as a limited company contractor I do need to have my own insurances?

[Alan @ BroomeAffinity]

Depends on what the client and agency stipulates. Check your contract.

[northernladuk]

Depends on what the client and agency stipulates. Check your contract.

This....^ You are not called a CONTRACTor for nothing....

[benben5555]

I have checked the contract and it says have the appropriate insurances in place. My question was if this was common? Do the vast majority of contracts include this? Is it fundamental to being a contractor?

[northernladuk]

Yes it is. You are a supplier contracted to work with clients data and the like. They want to make sure you can pay up if you do something that's going to cost them a lot of money. Employees get the sack, you will get sued. You need Professional Indemnity insurance that will pay out if you **** up with the clients data.

It's not expensive. Go look at QDOS and the like.

[Alan @ BroomeAffinity]

I'd say 80 - 90% of my IT contractor type clients have an insurance clause. It's normally about £450 pa.

[Alan @ BroomeAffinity]

Aside from contractual obligation id say it's also good business practice. Although I can't think off hand of any clients who've ever had to claim so maybe it's a needless expense. Who knows? I guess that's the nature of insurance though.

[SueEllen]

I'd say 80 - 90% of my IT contractor type clients have an insurance clause.

My PI insurance is cheaper through QDOS.

However due to how companies share buildings most of my contracts in the last 2 years require public liability insurance as well.

In other words shop around and read the policies before taking the insurance out.

[Fred Bloggs]

Also, be aware that many policies will not cover nuclear, oil and gas, aviation, Canadian or American projects. Read the fine print and buy the cheapest, you're unlkely to have a claim.

[SlipTheJab]

I'd say 80 - 90% of my IT contractor type clients have an insurance clause. It's normally about £450 pa

£450 notes a year !!! Unless your contract requires you to ferry gold bullion around the coast of Somalia I'd say thats a bit on the high side , I'm paying < £200 through QDOS for the hold trinity of PI, PL and EL