Contractor insurance for UK resident working for US-based client

[tegularius]

Search has failed me me this topic so I hope someone here can help

I'm a product manager, and have just made the switch to contracting. I've got an accountant, have set up a Limited Company, all that good stuff. I am a UK citizen based in the UK.

The one area I'm missing at the moment is insurance. QDOS was suggested to me for contractor insurance, however they do not cover contractors whose main clients are in US jurisdiction. As it happens, my contract with my main client is indeed under US jurisdiction. I have checked with them and, for this reason, they won't cover me.

Other UK contractors who do business with US clients - who provides your insurance cover?

[jamesbrown]

Try Randell Dorling, but you'll need IPSE membership. It's the cheapest I've found, by far, for Canadian or US jurisdiction and governing law (e.g., of a US state). You could also try Hiscox direct (who underwrite the policy), but it will probably be a lot more expensive.

[jamesbrown]

But check your contract first, because you will only need this if the contract explicitly specifies US jurisdiction and/or governing law. It isn't about where the client is located per se, but the contractual terms.

[tegularius]

But check your contract first, because you will only need this if the contract explicitly specifies US jurisdiction and/or governing law. It isn't about where the client is located per se, but the contractual terms.

Many thanks jamesbrown. You're right to point this out - my contract does specify US jurisdiction.

I've checked with Hiscox and they will cover me for Professional Indemnity insurance and Legal Protection insurance, which were stumbling blocks with Qdos.

Much obliged for the tip.

[Pring]

I'm working on a contract under US Jurisdiction at the moment (Commonwealth of Virginia). Cheapest I've found in recent years was Kingsbridge, latest renewal was ~£520. Hiscox were always more expensive. Haven't tried Randell Dorling, I actually meant to get a quote from them through IPSE but when I looked at IPSE they were recommending Markell Direct who wouldn't cover me.

[jamesbrown]

I'm working on a contract under US Jurisdiction at the moment (Commonwealth of Virginia). Cheapest I've found in recent years was Kingsbridge, latest renewal was ~£520. Hiscox were always more expensive. Haven't tried Randell Dorling, I actually meant to get a quote from them through IPSE but when I looked at IPSE they were recommending Markell Direct who wouldn't cover me.

That's pretty reasonable, depending on the coverage amounts. It's probably in the same ballpark as Randell Dorling (which starts at around £350 for £100k cover w/ US jurisdiction and governing law) but, again, the PI is the expensive part and the cost is directly proportional to cover amount, so £520 in itself doesn't mean much without the cover amount. You'd probably get something like £200k of cover for that with Randell Dorling (aggregate claims, any one year), but I'm guessing. I personally have much higher cover because, well, for a few hundred quid extra, why not. There are many insurers that will quote you in the thousands for US cover.

[Pring]

That's pretty reasonable, depending on the coverage amounts. It's probably in the same ballpark as Randell Dorling (which starts at around £350 for £100k cover w/ US jurisdiction and governing law) but, again, the PI is the expensive part and the cost is directly proportional to cover amount, so £520 in itself doesn't mean much without the cover amount. You'd probably get something like £200k of cover for that with Randell Dorling (aggregate claims, any one year), but I'm guessing. I personally have much higher cover because, well, for a few hundred quid extra, why not. There are many insurers that will quote you in the thousands for US cover.

Professional Indemnity is £1,000,000 limit of any one claim. Underwritten by Zurich. It was ~£300 for UK coverage, the US & Canada Jurisdiction Endorsement was an extra £200 + tax premium.

[jamesbrown]

Professional Indemnity is £1,000,000 limit of any one claim. Underwritten by Zurich. It was ~£300 for UK coverage, the US & Canada Jurisdiction Endorsement was an extra £200 + tax premium.

That is an excellent deal and, very likely, unbeatable. Good find.