Dilemma about business insurance

[lucozade]

My agency has thrown a curve ball at all it's contractors, insisting they all have Public Liability cover for £5m and Professional Indemnity cover for £250,000.

However, when I checked my contract terms (I'm now 7 months into my role) the insurance cover requirement is vague to say the least. No mention of levels of cover and no mention if it's actually compulsory. Just a sentence saying "please send us copies of your insurance cover".

I'm caught between a rock and a hard place because the agency holds all the cards.

To avoid any unnecessary hassle I decided to shop around for quotes.

However, I've been advised by an insurance specialist that when I'm considering the Professional Indemnity cover I need to base it on the contract worth between the company I'm providing services to and their end client. As it's a government project I'm on this is effectively worth £10s of millions!

So the insurance chap has told me that he cannot provide that level of cover.

I've passed this back to the agency and they have effectively told me to take the most basic of cover out even although it's not worth the paper it's written on. This is all to do with a paperwork admin process that they have decided to go through for all contractors.

I'm not being tight but if the insurance really is worthless then i'd rather use that money to buy my kids some clothes!

On the other hand I do understand the need to have adequate cover but I feel that I'm going round in circles with the agency and insurance company.

Has anybody found themselves in a similar position?

[BolshieBastard]

Not to be arsey about it but, you should have PII and PLI imho if you're contracting as a matter of course.

I'd just say take the level you're comfortable with. I usually go for no more than £5m and £500k. Have a look at QDOS.

[malvolio]

If they are demanding that you take out insurance cover to a level that is not mandated in your contract, and assuming you do actually have PI already, then perhaps politely suggest to them that they (or the client) might like to pay for the difference in premium...

If you haven't got it and it's in your contract that you should have, then you have a different problem, of course.

[lucozade]

Not to be arsey about it but, you should have PII and PLI imho if you're contracting as a matter of course.

I'd just say take the level you're comfortable with. I usually go for no more than £5m and £500k. Have a look at QDOS.

Thanks - QDOS nailed my requirements.