Ouch, last minute PI Insurance and North American client

[password]

Hey Guys,

I need some advice here. I've just accepted my first contract, which came around rather quick and I also forgot about PII even though I had considered it a while back - I just forgot to engage a broker.

Having accepted the offer on Thursday and due to start on Tuesday (13th Mar) I need PI before the agency will draw and release a contract to be signed.

My quote appears to be non straightforward as I also do a little work for a Canadian company on the side and have signed a partner agreement with them. The contract is valid in Canadian jurisdiction.

(I have engaged QDOS on this)

So, the broker gave me a couple of forms to fill out on this and some of the questions are a little complex but I will complete it no problem.

I am aware that it will be a big stretch to close this insurance on Monday. Hopefully the agency will be able to act fast once it is done but I am aware this is tight.

Is there anything I can do to try and expedite this at all to ensure a Tuesday start date (I don't want to pi$$ off client).

I am thinking:

1. Have the forms completed, signed and ready to be sent on Monday at 9am, leaving any unclear questions blank and clarifying with the broker at 9am on the phone.
2. Is it possible to tell the broker that I have a Canadian client but I don't want liability cover from them at this point in time. I'm not sure insurance works like this, but it makes sense, right? Basically, the insurer won't cover any claims from Canadian client?
3. I will have the agency Ops team ready everything on their end on the premise that I will submit valid PII. Then once received and is in order, they can release the contract for me to be signed.
4. Don't tell the broker about Canadian client and get a quote generated to satisfy broker. Or I could do that and then get the insurance voided and renewed once there is more time.

I included the last point for brevity and so that nobody suggests it. I will not do that.

Any thoughts would be greatly appreciated, thanks.

Thanks guys

[jamesbrown]

Hey Guys,[*]Is it possible to tell the broker that I have a Canadian client but I don't want liability cover from them at this point in time. I'm not sure insurance works like this, but it makes sense, right?

It's unclear what you're asking here, but I assume the Canadian client is not the client for whom you need insurance via the agency. In that case, you should be able to demonstrate PI insurance for the client that requires you to demonstrate this. Obviously, this won't be valid for Canadian jurisdiction and/or governing law, unless the PI insurance says so (it won't, this is a common exclusion).

Separately, it sounds like you don't have PI insurance for your Canadian client. Bad idea. You're potentially entering a world of hurt if they decide that they don't like something you've done, or you cause them loss. There's a reason that NA is a common exclusion in PI insurance policies. If you want a decent quote for NA jurisdiction, join IPSE and go through Randell Dorling. You won't beat them on price. You should be an IPSE member anyway.

However, if my interpretation of your problem is correct then, yes, you can have separate cover for your NA client or you can choose not to cover that at all. It's worth noting that I've never had a contract with a NA client that does not have a similar requirement to demonstrate valid business and PI insurance. In that case, you're in breach of contract, but that's a separate issue.

Is it possible to tell the broker that I have a Canadian client but I don't want liability cover from them at this point in time. I'm not sure insurance works like this, but it makes sense, right? Basically, the insurer won't cover any claims from Canadian client?

Sure, you can do that. This happens by default. It's a policy exclusion, most likely. You don't even need to tell them. You won't be covered for your Canadian client.

Still, it's a bad idea not to have coverage for your Canadian client. But you can sort it out separately, of course, so there isn't a rush for your non-Canadian client.

I included the last point for brevity and so that nobody suggests it. I will not do that.

It's irrelevant whether you tell them or not. The policy will have exclusions. This will be one. You are not covered for policy exclusions. You are covered for valid claims.