UK contractor governed by US law

[Mattcontract]

Hi all,

I've tried searching forums and the web with little success and hoping you can help. I'm about to start my first contract, I've registered my PLC in England and Wales but my new temporary contract is from the US entity of my current employer and governed under US law. I'm finding it difficult to get business insurance, I imagine there are plenty of people in the same situation and can't see why it is proving so hard. Does anyone have any advice on this or know of any companies who offer this service?

Thanks in advance,
Matt

[SuperLooper]

I've registered my PLC in England and Wales

Do you mean private limited company? A PLC is something completely different.

but my new temporary contract is from the US entity of my current employer

Current employer? Do you mean current client?

If you make sure you understand what you're asking for, and use the correct terms, maybe you'll have more luck finding something suitable.

[Lance]

When you say 'business insurance' what are you after?
PI? PL? EL? Travel? Health?

Have you tried ringing, oh I don't know, someone who specilialises in finding insurance? Like a broker?

What insurance does your contract require you to have? And are you getting your contract reviewed by a specilaist? Like say, oh I don't know, maybe a solicitor.
You don't want to be extradited if you screw anything up. Or at least you want to know whether it's possible or not.
Given that people who aren't lawyers barely understand the law in their own country I'd be very wary of a foreign jurisdction. Particularly in a litigious jurisdiction.

[Mattcontract]

Hi,

Thank you for the quick replies, sorry for the lack of detail and for using incorrect terminology. You are correct in assuming it is a private limited company and not PLC.

Firstly I mention my current 'employer' as I am a permanent employee with the UK arm of the company, but switching to a temporary contract which is governed by the US side.

I searched for business insurance through MoneySuperMarket (who use Simply Business) which covers PI, PL and EL. They called me to say they were unable to provide quotes because the contract is not governed by UK or EU laws. They suggested I speak with BIBA, who were also unable to help as 'at least 50% of the contract is not governed under UK/EU law'.

When you mention a specialist broker, this is what I am asking for. I don't know which companies specialise in this field.

Finally regarding solicitors reviewing the contract, I am happy to pursue that, thank you for the advice. However, I am not sure this will help on the insurance front.

The wording of the contract asks simply to obtain 'including but not limited to errors and omissions insurance with limits of liability not less than $500,000'. From searching online I believe the errors and omissions to fall under PI insurance but feel free to correct me here.

Thanks again,
Mattcontract

[Lance]

Hi,

Thank you for the quick replies, sorry for the lack of detail and for using incorrect terminology. You are correct in assuming it is a private limited company and not PLC.

Firstly I mention my current 'employer' as I am a permanent employee with the UK arm of the company, but switching to a temporary contract which is governed by the US side.

I searched for business insurance through MoneySuperMarket (who use Simply Business) which covers PI, PL and EL. They called me to say they were unable to provide quotes because the contract is not governed by UK or EU laws. They suggested I speak with BIBA, who were also unable to help as 'at least 50% of the contract is not governed under UK/EU law'.

When you mention a specialist broker, this is what I am asking for. I don't know which companies specialise in this field.

LMGTFY

Finally regarding solicitors reviewing the contract, I am happy to pursue that, thank you for the advice. However, I am not sure this will help on the insurance front.

No. But it might help you not get taken to the cleaners for something you don't understand. If you trust them then it's a choice for you to make depnding on your attitude to risk.

The wording of the contract asks simply to obtain 'including but not limited to errors and omissions insurance with limits of liability not less than $500,000'. From searching online I believe the errors and omissions to fall under PI insurance but feel free to correct me here.

Yeah. That's PI.

[WordIsBond]

You could try QDOS. They sold me PI on a contract with a US client. The contract was governed under UK law, though, I don't know whether they'd cover a US contract. You might have to try to buy it from a US firm.

[WordIsBond]

Oh, and I hope you've thought about currency issues. Are you being paid in GBP or USD? And visa issues -- are you going to be doing any work over there? And US tax issues -- you aren't a US citizen, are you? If so, you need to know what you are doing in regard to your company and US taxes, because it very much DOES matter.

[Mattcontract]

You could try QDOS. They sold me PI on a contract with a US client. The contract was governed under UK law, though, I don't know whether they'd cover a US contract. You might have to try to buy it from a US firm.

Thanks for the advice, I've just looked on QDOS' website and will have to speak to someone on Monday due to a similar question/statement excluding North American jurisdiction. Perhaps I am better looking at a US firm, I wasn't sure if they'd cover a business registered in England and Wales, but I will look further into that.

Oh, and I hope you've thought about currency issues. Are you being paid in GBP or USD? And visa issues -- are you going to be doing any work over there? And US tax issues -- you aren't a US citizen, are you? If so, you need to know what you are doing in regard to your company and US taxes, because it very much DOES matter.

I'll be paid in GBP, carry out all of my work in the UK and am a British citizen. I'm ok in this front, it's only the insurance which is causing an issue.

[Pring]

I'm in a similar situation, Scottish limited company working for a US company on a contract governed under State of Virginia Law. Took me a while to find a good fit for insurance but Kingsbridge have a North American Jurisdiction endorsement available. Wasn't cheap though.

[WordIsBond]

Wasn't cheap though.

No, it wouldn't be. What insurer wants to get dragged into a US tort situation? You'll pay for it. One of the reasons I refuse to sign US law contracts.