First contract - client asking for very high insurance limits!

[Eirikur]

Hello everyone

I am brand new to contracting and have been racing to get everything set up because I already have a client looking to get me in asap. I'm a limited company and the only thing left to sort out is insurance.

I got my first look at the draft contract the other day and it asks for the following limits per occurrence:
Professional Indemnity - £5m
Public liability - £10m
Employers Liability - £5m

I already got back to them to say I have no employees so employers liability can be taken off, but the limits for the other two are way higher than what I've come across in my reading. I was expecting £1m for each.

I will be doing software development on their premises.

Am I right to question these limits? Also if I do have to buy insurance up to this amount would I be able to tone it down after the job because it's pretty expensive.

Thanks very much!

Was asked to raise my insurance to similar levels a few years ago. Did it without giving it a second thought. The thing is don't forget to downgrade at your next renewal, which I forgot, so paid a few hundred quid too much for two years.

[Jack Kada]

Back in the day the norm was to get them, present them, cancel them the day after.....

Are you taking the mick?

[stek]

Are you taking the mick?

No, this was early nineties mind...

[Taita]

No, this was early nineties mind...

and just another serious breach of faith but 'hey ho, Tonto, you are only a cowboy anyway......

[Taita]

Hello everyone

I am brand new to contracting and have been racing to get everything set up because I already have a client looking to get me in asap. I'm a limited company and the only thing left to sort out is insurance.

I got my first look at the draft contract the other day and it asks for the following limits per occurrence:
Professional Indemnity - £5m
Public liability - £10m
Employers Liability - £5m

I already got back to them to say I have no employees so employers liability can be taken off, but the limits for the other two are way higher than what I've come across in my reading. I was expecting £1m for each.

I will be doing software development on their premises.

Am I right to question these limits? Also if I do have to buy insurance up to this amount would I be able to tone it down after the job because it's pretty expensive.

Thanks very much!

Just an agency reflecting the increased insurances asked of them (particularly by public sector bodies or public sector contractors) so another business expense to swallow. Worth looking at the offerings geared to contractors on these pages before you start a meerkat hunt.

[stek]

and just another serious breach of faith but 'hey ho, Tonto, you are only a cowboy anyway......

Maybe so but its you on the high horse...

Boom boom...

[raphal]

Thanks for the replies



Corporate systems which deal with financial information like purchase orders

SAGE ?

[darmstadt]

True, I don't mind paying for it for this job, however I don't want to be stuck paying £500 PA when £200 would be sufficient. Would I be OK to bring it down once the job is finished?

I have to renew mine each year and you fill in the form and say what you have been doing and will be doing and the rate changes depending upon the work being carried out. The only time the rate goes up, and there's a special section on my form for this, is working on live system to do with payments in the financial area. I can change my one any time and have to sometimes as I take on extra work or have more than one client

[Taita]

Maybe so but its you on the high horse...

Boom boom...

Pale rider on a pale horse, sunbeam..... get your head back down on the rail Tonto and figure out what time your train is coming cause it's going home time.

[ZebraSnake]

Hi Bookman, I think you're perfectly within your rights to question the limits of insurance your company has to purchase.