First contract - client asking for very high insurance limits!

[Bookman12]

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!

[stek]

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

[PerfectStorm]

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

You're ****ed if anyone asks you to enact any of them

OP: Qdos will do all the above for about £400 I think.

[SlipTheJab]

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!

Seems excessive. What are you programming, Nuclear Missile guidance systems

[stek]

You're ****ed if anyone asks you to enact any of them

OP: Qdos will do all the above for about £400 I think.

I said back in the day...

Anyway I think Qdos have already said on here no one's ever claimed....

[TheFaQQer]

You're ****ed if anyone asks you to enact any of them

OP: Qdos will do all the above for about £400 I think.

Closer to £500 for those limits.

But if it's that rather than losing the contract then pay up and get to work

[Bookman12]

Thanks for the replies

Seems excessive. What are you programming, Nuclear Missile guidance systems

Corporate systems which deal with financial information like purchase orders but don't actually process payments.

Closer to £500 for those limits.

But if it's that rather than losing the contract then pay up and get to work

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?

[SlipTheJab]

Thanks for the replies



Corporate systems which deal with financial information like purchase orders but don't actually process payments.



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?

Think you have to buy the policy for a year, no reason why at renewal time you cant drop down to sane amounts of cover.

[aoxomoxoa]

Seems excessive. What are you programming, Nuclear Missile guidance systems

£10m Public Liability cover won't go very far when one of those goes off course

[SlipTheJab]

£10m Public Liability cover won't go very far when one of those goes off course

Depends where it hits, if its Blackpool you're probably over insured