To Insure or Not Insure??

**swamp** · 21 September 2009, 14:01

What insurance are you talking about? Professional Indemnity? Public Liability? Jury Service?!

**diesel** · 21 September 2009, 16:58

its for PL EL accident etc (they provide a comprehensive cover)

**PhilAtBFCA** · 22 September 2009, 06:53

diesel

For insurance advice it is probably best to ask an insurance broker, but if you have PI insurance then some policies will cease cover when you cease payment, so if a contract you did some time ago crawls out the woodwork to bite you then you may not be covered.

the same may well be true for EL/PL.

From a business point of view you may well wish to cut costs and not ahve insurance, but whne you get busier you may need it and have to have it for a year anway- so mabe you could look at the situation as you need it now to be in a position to do a contract anyway.

Some brokers do less than a year on a policy, Simply Consultants is one of these.

Phil

**jamesledingham** · 1 October 2009, 14:02

Parts of this are correct. Professional indemnity policies are on a claims made basis and cover ceases when the policy period ends. If you let your renewal lapse there will be no more cover and any claims against you, received after that date, would not be indemnified even though it relates to work you did whilst the policy was in force. Liability covers such as employers' and public work differently and the insurer picks up losses from incidents which occured during the policy period rather than when the claim is first made against you.

If you renew you will benefit from continuous cover and will also have the policy in place ready for any new contract work you might be offered. If you close the company then you should consider run off cover which provides back up PI cover after the policy ceases for a set period of time, its normally only available from your last insurer though and your broker should be able to offer this to you. Run off cover is not suitable for on and off working periods though as it doesn't cover new work. Thats why its best to renew and see what happens - be aware though that most professional indemnity policies are a year long commitment.

If there is anything you are not sure about speak to your broker and they can advise you correctly of your options.

--
James Ledingham
Kingsbridge Professional Solutions
<admin note>link removed - please see terms and conditions of the forum</admin note>

**jamesledingham** · 1 October 2009, 14:04

Parts of this are correct. Professional indemnity policies are on a claims made basis and cover ceases when the policy period ends. If you let your renewal lapse there will be no more cover and any claims against you, received after that date, would not be indemnified even though it relates to work you did whilst the policy was in force. Liability covers such as employers' and public work differently and the Insurer picks up losses from incidents which occured during the policy period rather than when the claim is first made against you.

If you renew you will benefit from continuous cover and will also have the policy in place ready for any new contract work you might be offered. If you close the company then you should consider run off cover which provides back up professional indemnity cover after the policy ceases for a set period of time, its normally only available from your last insurer though and your broker should be able to offer this to you. Run off cover is not suitable for on and off working periods though as it doesn't cover new work. Thats why its best to renew and see what happens - be aware though that most professional indemnity policies are a year long commitment.

If there is anything you are not sure about speak to your broker and they can advise you correctly of your options.

--
James Ledingham
Kingsbridge Professional Solutions
<admin note>link removed - please see terms and conditions of the forum</admin note>

**BrilloPad** · 1 October 2009, 16:54

qdos are very good and very cheap.

**Fred Bloggs** · 2 October 2009, 07:59

Originally posted by BrilloPad View Post

qdos are very good and very cheap.

Possibly for IT work. I'm a process engineer and although QDOS cover me for IR35 issues, their broker wouldn't quote for PI/PL/EL for my business. Never asked why.

**Qdos Contractor** · 2 October 2009, 11:38

Originally posted by Fred Bloggs View Post

Possibly for IT work. I'm a process engineer and although QDOS cover me for IR35 issues, their broker wouldn't quote for PI/PL/EL for my business. Never asked why.

How long ago was that?

To Insure or Not Insure??