IT Contracting Essentials?

[Contramatuer]

I'm sure this has been posted before and if so, please reply with a link to a thread that is already on here.

I'm looking into the IT Contractor market and just have a few questions.

1. What are the most common insurance requirements that an IT Contractor needs - Just PI? PI + PL? PI + PL + EL?

Would I be correct in thinking that the cover needed would be £1m PI, £5m PL and £10 EL in most cases?

2. What Insurance Companies offer the best packages and best prices

3. What is considered to be the normal price for IT Contractor insurance?

My first post so forgive me for the bombardments. Thanks!

[kevpuk]

Search is your friend.....see the tag cloud over on the right-hand side, towards the bottom of the page? See the word Insurance in there - guess what?

For some basic answers, PI is usually required - limits vary, but £1m is possibly norm. PL is not so often required, but is pretty cheap (£5m or £10m) and worthwhile IMHO. EL probably less important if only a 1-guy-Ltd, but.....
QDOS is a good place to start looking at products and costs, and PCG+ membership is pretty much a no-brainer

[BigRed]

It all depends on the role really, plus what the agency specifies and what you think you require. In practice, I don't recall a customer ever specifying a requirement, most of the agencies have had something written into the contract but have never asked for proof, not even the ones that chase down every reference, require a photocopy of all pages of my passport, and want to see my Degree certificate from 30 years ago.

[Contramatuer]

It all depends on the role really, plus what the agency specifies and what you think you require. In practice, I don't recall a customer ever specifying a requirement, most of the agencies have had something written into the contract but have never asked for proof, not even the ones that chase down every reference, require a photocopy of all pages of my passport, and want to see my Degree certificate from 30 years ago.

Through obtaining some quotes online, I have found out that the role or category that a contractor finds him/herself in (such as Programming, IT Consultancy, Web Design and Software design etc) doesn't affect the price at all and the role doesn't matter? Is this something you'd agree with?

[northernladuk]

It all depends on the role really, plus what the agency specifies and what you think you require. In practice, I don't recall a customer ever specifying a requirement, most of the agencies have had something written into the contract but have never asked for proof, not even the ones that chase down every reference, require a photocopy of all pages of my passport, and want to see my Degree certificate from 30 years ago.

I have been asked for proof on my last 2 gigs and the one I am on now ask for proof at every renewal so don't take it too lightly. It's £240 from QDOS and that gets a few contract reviews thrown in so peanuts in the long run. I would keep paying it even if the agency doesn't stipulate it. You run a company so nothing to hide behind if it goes wrong.

[northernladuk]

To the OP...

The search function is explained here..

http://forums.contractoruk.com/welco...uk-forums.html

Use that method to search for any keyword related to your question and you will get 100's of threads on this topic.

[manubbo]

My contract requires PI, and I've got PL from QDOS as well. Cheap and helpful also in regards to IR35 investigations (financial risk).

I didn't take EL as I'm the only employee and 100% shareholder of my LTD, and QDOS advices that:

"Employers' Liability Insurance is compulsory for any business that has one or more employees whether they are permanent, part time or temporary. The only exception to this is if you are a ‘Ltd’ Company, you are the only employee and you own at least 50% of the issued share capital of the company."

[SueEllen]

Through obtaining some quotes online, I have found out that the role or category that a contractor finds him/herself in (such as Programming, IT Consultancy, Web Design and Software design etc) doesn't affect the price at all and the role doesn't matter? Is this something you'd agree with?

Nope.

It's your role type plus a mixture of the industry/industries you provide services to and/or whether you work on live systems that impacts your insurance price.

[BigRed]

It's £240 from QDOS and that gets a few contract reviews thrown in so peanuts in the long run. I would keep paying it even if the agency doesn't stipulate it. You run a company so nothing to hide behind if it goes wrong.

I agree actually, I'm paying it as well, just saying that it's a decision I made rather than been forced to because the agency requested proof. I'm hoping I'll get massive compensation down the line for miss selling