Professional Indemnity insurance

[real_techie]

All,

Its my first contract so I have few doubts. I need to take 1M PEI and 1M Public Liability insurance as per my contract.

I have done PCG membership to cover against IR35.

I have got 3 months contract for £450 a day. As of now, its likely to be renewed but who knows. If I take a month break in the year or 1 month without the contract, then my turnover will be less than £100,000. When I take insurance, should I tell my insurance for turnover less than £100K. Most likely, I will take holidays and my earnings will be less than 100k. But if I take insurance for turnover less than 100k and my earnings go above, what will happen in that case?

Can somebody plesae suggest, the best policy (cheapest) for the above insurances. Any help, much appreciated.
Thanks.

[Pondlife]

Since you've already joined PCG you can access one of their discounted schemes - it's with Randall Dorlling IIRC. It's about £200 and will give you £100K + £1M shared cover.

For the sake of a tax deductable half days work it's well worth it. Also AIUI Prof indem ins is to cover you when sued by the client and so can be linked to their losses and not your turnover.

HTH

[real_techie]

Thanks Pondlife.

My contract was started in the first week of january. Do I need to take insurance from the start of the contract or can I buy from the curent date? Also, from the Randell Dorling website, its coming to be around £440. Am I doing something wrong?

[Pondlife]

I think it can be backdated. You may need to follow a link from the PCG site and give your username in the application.

Note: You need to apply for the £100K with access to a shared pot of £1M.


HTH

[real_techie]

Thanks Pondlife. Yes, I have gone through PCG and have specified my user id as well. But its very expensive around £450. Am I doing something wrong?

I am chosing 1 million for PEI and PL.

Thanks,

[Pondlife]

Thanks Pondlife. Yes, I have gone through PCG and have specified my user id as well. But its very expensive around £450. Am I doing something wrong?

I am chosing 1 million for PEI and PL.

Thanks,

Maybe best to give them a call in that case.

[malvolio]

Thanks Pondlife. Yes, I have gone through PCG and have specified my user id as well. But its very expensive around £450. Am I doing something wrong?

I am chosing 1 million for PEI and PL.

Thanks,

No, that's about right for £1m cover - a bit under actually.

However if you take the default option of £100k + £1m shared risk, it's a little over £200 - unless you really need a dedicated £1m cover that is.