Prof Indemnity insurance stipulation

**northernladuk** · 18 June 2010, 13:39

It is less than 250 quid a year. Are you really willing to risk your entire contract to not have it. In fact it is less than 250 once it has gone through the books.

Speak to QDOS, buy it, sleep easy at night. Simples.

P.S. It is not up to your agency to make sure you adhere to the terms of your contract. They are your agency not your mother.

**SackmanandCo** · 18 June 2010, 13:48

worth the price. its also imporant from an Ir35 perspective

**theroyale** · 18 June 2010, 16:10

Forgive me for being blasphemous but no insurance is worth anything - its all just a waste of money. What I WOULD lose sleep over is spending this money paying an insurance industry that's fobbing off a country on manufactured demand. 250 quid or 150 quid, if I can legally avoid it its money that's much better spent elsewhere.

its also imporant from an Ir35 perspective

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.

**Wanderer** · 18 June 2010, 19:54

Originally posted by theroyale View Post

Forgive me for being blasphemous but no insurance is worth anything - its all just a waste of money. What I WOULD lose sleep over is spending this money paying an insurance industry that's fobbing off a country on manufactured demand. 250 quid or 150 quid, if I can legally avoid it its money that's much better spent elsewhere.

Agreed. If I'm trading as a limited company then there is limited liabiliity so who cares. The scam is that some agencies/clients say you have to have it. You have to ask how you can buy 2,000,000 pounds worth of liability insurance for a couple of hundred quid.

As for IR35, I don't think that it's anything other than a minor pointer. It's the biggies, Control, Substitution, Mutuality Of Obligation etc that decide it.

**swamp** · 18 June 2010, 21:41

PII is a bunch of old bollocks.

If you want to waste £250 then go ahead. Bear in mind with most policies you'll have to continue paying for six years afterwards. So to fully cover yourself (for a 12 month contract) you'll need to pay £1,750.

IMO it's virtually impossible for a client to make a penny from suing a contractor, because a contractor's limited company usually has no serious assets. Beyond that we have cast-iron protection of limited liability, and any money they could get would be eaten up in legal fees.

**pmeswani** · 19 June 2010, 07:56

Originally posted by theroyale View Post

Forgive me for being blasphemous but no insurance is worth anything - its all just a waste of money. What I WOULD lose sleep over is spending this money paying an insurance industry that's fobbing off a country on manufactured demand. 250 quid or 150 quid, if I can legally avoid it its money that's much better spent elsewhere.

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.

**theroyale** · 23 June 2010, 15:56

Originally posted by pmeswani View Post

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.

Sue me for what?

**northernladuk** · 23 June 2010, 16:23

******* up and costing the company alot of money to fix and from lost revenue

**BolshieBastard** · 23 June 2010, 19:54

Originally posted by theroyale View Post

My contract stipulates professional indemnity insurance but my agency hasn't said anything about it/brought it up - do I need to take it or can I get away without?

Who issues your contract then!?

Prof Indemnity insurance stipulation