Query re Group PI vs Personal PI for IR35

[northernladuk]

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?

Overall PI insurance is a very very minor flag. You've got a lot more to worry about than PI if you don't understand IR35 enough to be able to guess this to be honest so forget the IR35 aspect. The idea that having their PI will stop you being investigate is ludicrous though. It might be a very slight help in a defense if you are investigated but it won't mitigate an investigation.

What is more important is that you are still banging on about using an agents PI. It's likely your contract will stipulate you must have PI insurance so you'll be in breach without it. It's a few hundred quid a year. The idea that you are using an agents PI is very risky. You are not in control, you don't know the full T&C's and so on. As Andy aluded to it covers them and not you so if you cock up you could still be exposed.

The very simple answer, which you've been given numerous times, is to get yourself the proper PI cover and forget the agent. It's your business so you need to run it properly. Pay £140 quid or whatever, the IR35 issue is covered and your ass is covered. No risk and no worry.

[mediacity]

In my view, PI is both unnecessary, and a waste of money, at least in my industry. I’ve always had PI, as I’m contractually obliged to have it. But in 12 years of working as an actuarial contractor, and 26 years of working in the actuarial profession at large, I have never once heard of even one actuarial contractor needing to claim on their PI, and it’s a small profession. If you can point me to just one instance of an actuarial contractor claiming on their PI, I’m more than happy to revise my opinion on it.

This is the reason why I would prefer to go with the agent's PI cover - it'll save me money. I'm satisfied that I am covered under his policy.