Professional Indemnity Limit????

**Gonzo** · 20 February 2007, 17:06

If it is not stipulated that you need it in the contract then there are many that will argue that it is an expense that is not needed.

My company has to have £1M and it gets a bit pricey at that level.

**V M4N** · 20 February 2007, 17:09

Before I went limited, Giant had covered me for £2 million. And so my agency has recommended that as they don't know otherwise. I just don't want to take out insurance for the sake of it, especially as, as it stands nobody can tell me why i need it, and how much i need?

Just don't want to find out 6 months down the line that i actually needed it!

**Gonzo** · 20 February 2007, 17:21

Originally posted by V M4N

Before I went limited, Giant had covered me for £2 million. And so my agency has recommended that as they don't know otherwise. I just don't want to take out insurance for the sake of it, especially as, as it stands nobody can tell me why i need it, and how much i need?

Just don't want to find out 6 months down the line that i actually needed it!

Well you'll need to take a view on how likely it is that your company is going to get sued for bad or faulty services, and if so, what the costs are likely to be. That depends on the line of work that you are in and how costly a mistake that you make is going to be for your client(s).

As I said, there are many who take the view that the client is very unlikely to sue, have never heard of it happening, and therefore don't take out that insurance.

**boxman** · 20 February 2007, 17:32

I got asked for £1m on last gig (by agent) and told them my standard cover was £100k and I'd charge the rest on to them if they wanted more (at cost). I then mentioned the PCG shared cover (£2m from memory) and they said that'll do nicely sir!

**MarillionFan** · 20 February 2007, 17:36

Never needed it.

Has anyone ever needed to claim against it?

**V M4N** · 20 February 2007, 17:39

From what I understand, in my role, its highly unlikely i will get sued, and even then, the company's got a 'no blame' culture, which i actually doubt would come in to play if they were to sue me,

Going to have one more fire at my agency, as I feel they keep pushing me away saying they don't provide financial advice!!!! I'm pretty sure if my client were to sue me, they would have to come through my agency???

Will let you guys know what they say, cheers for your help so far!!!

**oraclesmith** · 20 February 2007, 17:52

If you don't have PI, you could try to limit your potential liability by putting a clause in the contract to the effect that you're only liable for putting right the work you did which is not fit for purpose. eg. if your program tweak causes serious data issues then you limit your liability to fixing the program not the data. Doesn't always work though as it even if it's signed it may be termed 'unreasonable' if it came down to it. In my opinion, for what it's worth.

Whether you need PI or not depends on your attitude to risk and what you're up to. I think it's money well spent.

**V M4N** · 21 February 2007, 08:13

I think for now, I'm not going to buy a policy which I don't know whether I need or not, or for that matter fits my requirements. I'll try and find out what I need, every other contractor I have asked here, all seem to have different amounts, and none of them no the reason for that amount

Agency are still classing this information as financial on not contractual, so it seems they either don't know, or are not the ones who are meant to tell me, not sure actually who is???

**AZZIK** · 5 March 2007, 11:53

I am thinking about signing up with PGC but at the moment I don't have much money. I read on there website you can get a discount on proffesional and employers liability insurance which I have been told I require. Can anyone tell me what kind of discount I can get through PGC before I sign up with them. Will it make a big difference as at the moment I am looking at paying 33 quid a month for both through Hisox as recommended by a colleague.

Are there any advantages to have PGC membership apart from the offer of legal aid.
Thanks in advance to those taht reply

Professional Indemnity Limit????