PI Insurance for short contract using Umbrella

[absoft]

I am new to contracting and would like advice on Professional Indemnity Insurance. I have a 4 month contract and am using ContractorUmbrella rather than my own Ltd. company. The client contract states that the 'Contractor' must have £1million professional Indemnity insurance. Does this mean for me (called the 'Consultant' in the contract) or for the Umbrella company (called the 'Contractor' in the contract)? Has anyone used the PI insurance linked to from the ContractorUmbrella site? This policy is arranged by Blyth Valley and uses Hiscox insurance.
I also looked at the contractor UK recommended insurance with Caunce O'Hara. The first thing this asks for is 'Company Name'. As I am not a Ltd company but using an umbrella, what do I put in there or is it innapropriate for someone using an umbrella?
I note also some Umbrella companies e.g. ParasolIT say they include PI but then provide no details about it, i.e. level of cover, on their web site. And what would happen when one stopped using an Umbrella that included PI? Presumably you would then no longer be covered and as I understand it, one is supposed to keep this insurance going as you have to be covered when a claim arrises; not just for when you were working. So am I right in thinking I am saddled with 6 years of PI insurance just for this one-off 4 month contract? Thanks in advance for any advice

[The Late, Great JC]

Giant provide this...

[absoft]

Giant?

Yes, but I am already with ContractorUmbrella so I can't use Giant.

[John Galt]

Why would you be stuck with 6 years PI Absoft?? Have you tried contacting their insurance provider?

[absoft]

PI for 6 years

The reason I would be stuck paying for PI insurance for 6 years is that you are only covered if the insurance was in force both at the time the work was undertaken AND when a claimant raises a claim. Anyone can make a claim for up to six years after the work was done; after that period I think it is more difficult to claim but I am no expert; in fact the opposite.
The ContractorUmbrella PI insurance wording states it is a 'Claims Mode' policy which means claims must be notified while the policy is in force. So lets say a software bug results in someone losing money three years after I did the coding; they would be raising a cliam then, not while I was doing the work. Hence the need to keep these policies going. Is this correct?

[boredsenseless]

In general you are correct - PI cover is supposed to have run-off cover for a number years - however usually it is stated for how long this run-off should be in the contract.

If you think the run-off period is excessive you can dispute it.

[ladymuck]

I don't believe you have to keep paying a policy for the next six years. Check this out with an insurer, but I would expect you to pay a one-off premium. Tell the insurer when the work has finished and they do the necessary for the work to be covered for the run-off period.

[boredsenseless]

I think the lady is correct but it may well require an additional payment for the run-off