High levels of insurance

[macde]

Hello and a big thank you already from a Newbie - this site, and particularly the forums - has been a big help to whittle down the google searches to choose an accountancy firm, bank etc etc.

However I'm kind of struggling on the insurance. I've been asked for PL of £10m, EL of £10m and PI of £5m. All insurers are telling me that's really high, and don't offer it for a start up, etc etc. The only one that has come back (after speaking to a broker) is a three figure a month sum.

I'm wondering if others find it easier to get those insurance levels (apparently they are a new standard for some govt contracts??), but either way they are def. not negotiable to get this contract.

Is splitting the insurance over a few providers something that's often done? I can get 2 out of 3 with most providers, but not all 3. So if one does the right PI level at an OK rate, they don't offer the PL & EL to the right level. And vice versa.

Would appreciate any guidance as I'm up to my 8th quote now, and several hours on Google.

[cojak]

What is your skill set and who is asking for this level of insurance?

Senior PMs and Programme Managers are asked for a high level of insurance but the industry standard for most contractors is £1m PI & PL.

Just tell them that you are (or will be) insured for the industry standard for your skill set - they are pushing this because they think you don't know any better.

[Qdos Contractor]

The £10m PL is the surprising one. £10m EL is standard and £5m PI, whilst high, is easy to do.

Is your work all office based? Have you asked why they require such a high PL limit? Seems very strange.

[GazCol]

Hello and a big thank you already from a Newbie - this site, and particularly the forums - has been a big help to whittle down the google searches to choose an accountancy firm, bank etc etc.

However I'm kind of struggling on the insurance. I've been asked for PL of £10m, EL of £10m and PI of £5m. All insurers are telling me that's really high, and don't offer it for a start up, etc etc. The only one that has come back (after speaking to a broker) is a three figure a month sum.

I'm wondering if others find it easier to get those insurance levels (apparently they are a new standard for some govt contracts??), but either way they are def. not negotiable to get this contract.

Is splitting the insurance over a few providers something that's often done? I can get 2 out of 3 with most providers, but not all 3. So if one does the right PI level at an OK rate, they don't offer the PL & EL to the right level. And vice versa.

Would appreciate any guidance as I'm up to my 8th quote now, and several hours on Google.

£10m PL/EL is easy enough to get, most brokers will be able to accomodate a quote without any issues, it's adding the PI on top that then becomes an issue for any one insurer and that's where the broker then has difficulty placing it. In the past, when working on public sector contracts, I have purchased my PL/EL from a broker (Swinton have done it for me in the past) and then got my PI direct from the likes of AXA/Hiscox who accomodate that cover in isolation.

[macde]

Thanks everyone.

Yes it is absolutely non-negotiable. The client did stress that (and that its meant that a few people have had to leave them so I could I please check that I can get it before committing). Joys of public sector (local authority).

The contract has come back stressing that I must provide proof of all three at that level.

I think I may have to do the split across insurers.

ETA: It's a PM job and will be across multiple sites.

[cojak]

Thanks everyone.

Yes it is absolutely non-negotiable. The client did stress that (and that its meant that a few people have had to leave them so I could I please check that I can get it before committing). Joys of public sector (local authority).

The contract has come back stressing that I must provide proof of all three at that level.

I think I may have to do the split across insurers.

ETA: It's a PM job and will be across multiple sites.

Then I would actually call QDOS et. al for telephone quotes rather than just researching online.

[Qdos Contractor]

Just for the sake of price comparison etc., we have just added a £10m PL option to our online shop system. Total cost for £5m PI, £10m EL & £10m PL (for an IT contractor) is £513.48 per annum or £42.79 per month. Not sure how that compares with what you've been quoted already.

[macde]

Just for the sake of price comparison etc., we have just added a £10m PL option to our online shop system. Total cost for £5m PI, £10m EL & £10m PL (for an IT contractor) is £513.48 per annum or £42.79 per month. Not sure how that compares with what you've been quoted already.

Thanks for that - that must be very new as I tried you online on Thursday and couldn't do it. So I was just going to do the PI with you. Will compare that to the split quote. I did also use the online chat facility and both operators confirmed that the PL max was £5m.

[Qdos Contractor]

Thanks for that - that must be very new as I tried you online on Thursday and couldn't do it. So I was just going to do the PI with you. Will compare that to the split quote. I did also use the online chat facility and both operators confirmed that the PL max was £5m.

Yes, changed on Friday. The operators obviously didn't realise there were plans afoot for the higher limit.

[macde]

Yes, changed on Friday. The operators obviously didn't realise there were plans afoot for the higher limit.

Great timing. All sorted, so thanks for that.

Now if only getting the bank account was that easy!!