Prof Indemnity insurance stipulation

[pmeswani]

Sue me for what?

Lets hope you (never) find out.

[TheFaQQer]

Is it? I suppose I need to read up about this but if anyone has links/threads to link to about the link between PI insurance and IR35 it would be helpful. Thanks.

No links, but how many permanent employees take out insurance to protect themselves from being sued by their employers?

[Southscape]

Altough it is not a legal requirement it is very advisable to have it as if you were to be sued by a client the insurance not only covers you for the damages but the cost of defending the claim as well. And for something which can cost under £150 do you want to risk it.

I have found that u can get a very competive quotaion for www.professionalinsuranceagents.co.uk Indemnity Insurance from Professional Insurance agents and they are very happy to provide advice.

[swamp]

Well, lets hope the client / agency doesn't try and sue you then. If your company doesn't have the money, they will come after you personally (as the Director). So either way, if you don't have the insurance, just make sure you have £2m in one of your bank accounts just in case.

The purpose of insurance is to offset the risk. Yes it is a waste of money, but the risk of not having it is not worth it unless you have the money to cover the liability.

If you are confident that you don't need the insurance and that you won't get sued and the agency won't find out, then it is a risk you have to decide to take.

Not if you have a limited company.

[Clare@InTouch]

Not if you have a limited company.

There are still circumstances where a directors can be personally liable - a limited company is not absolute protection from absolutely everything.

Company Solicitors discuss directors' liability under UK Companies Act

[Wanderer]

There are still circumstances where a directors can be personally liable - a limited company is not absolute protection from absolutely everything.

Company Solicitors discuss directors' liability under UK Companies Act

That article is talking about fraud. I doubt that your PI insurance is going to cover than anyway.

I think the conclusion at the end sums it up really.

In Conclusion

A Court rarely lifts the corporate veil of a company, and there are established exceptions, some of which are discussed here. If it may be proven that fraud has taken place or the company is not being used for valid means within the bounds of the law a court may lift this veil exposing the directors of the company to liability. Fraud unravels all.

[SueEllen]

No links, but how many permanent employees take out insurance to protect themselves from being sued by their employers?

Talking to my accountant sister years ago many large companies and organisations have a fund for legal expenses i.e. they self-insure so when an employee sues them they use money from this fund. (Same way that BP is paying for the mess now.)

Small companies and sole traders tend not to due to affordability.

In the case of small companies they tend to go into voluntary insolvency to avoid paying out which is why a few solicitors in the know will get their clients to put down named individuals in the company in any claim. This means if the company goes insolvent the person named on the claim still has to pay out their share of compensation and if that person happens to be the director well........

There as a small trader is legal liable for everything so there is nothing they can do to hide.

[Robot]

My contract stipulates professional indemnity insurance but my agency hasn't said anything about it/brought it up

Why would the agency say anything? It stipulates it in your contract and you would have read your contract before you signed it, well that's what the lawyers would argue over anyway IMHO.

[theroyale]

Who issues your contract then!?

Its a bog-standard contract issued to all 400 or so of their contractors.

[nolly]

Might is right ?

Its so typical as well now that you are in place before contracts are signed "conveniently" to asses how you are. Its part of the game of being a contractor the highs and lows. In this case its quite a minor thing, try and see what you can get but don't pay out trying to get. You should be able to do anything a solicitor can do.

Just because we tend to think legal doesnt mean we can ourselves enforce laws - just that they know the practice. You could do some research yourself and even act as your own legal team. Right is might and the law is the law unless their soliciter is bigger and there is ambiguity and you took sugar in your tea that day.