Requirement for PI and EL insurance

[Ignis Fatuus]

Public liability - you put a bag down in the middle of a passage, a client employee trips over it, breaks a leg, takes 6 months off recovering. They sue you for damages, the client sues you for damages. You either lose your house or you have PL that pays out.

[A] They sue your Ltd Co for damages. It goes bust. Its liability is limited. It doesn't need PL.
[B] They sue you personally for damages. It doesn't matter whether your Ltd Co has PL, it wouldn't cover you personally.

No?

[GB9]

[A] They sue your Ltd Co for damages. It goes bust. Its liability is limited. It doesn't need PL.
[B] They sue you personally for damages. It doesn't matter whether your Ltd Co has PL, it wouldn't cover you personally.

No?

C) They do both because your company doesn't pay out.

Having PL for a) negates the need for b)

[Ignis Fatuus]

C) They do both because your company doesn't pay out.

Having PL for a) negates the need for b)

Good point. Your Ltd Co having PL allows it to buy off the threat to yourself (if that's OK with the insurance co).

[GB9]

Good point. Your Ltd Co having PL allows it to buy off the threat to yourself (if that's OK with the insurance co).

Assuming that the claimant has a valid claim and not a personal vendetta, then I would expect a payout from the insurance company to suffice. I believe they would only come after you personally if your company didn't have the insurance. Not sure how this would pan out for a PI claim, although I do remember a case of someone losing £10ks as they weren't insured.

[Tomo1971]

Couple of things to bear in mind though...

You are a business so not unreasonable to think you will leverage an opportunities at your client to get other people in so will need the extra insurance. If you are so adamant it is only you and will only be ever that isn't going to help you quest against IR35. To be a business a good start is to think like one.

You have a substitution clause in your contract. If the client/agent is going to allow you to send a sub in it isn't unreasonable of them to make sure you have the proper insurances for that sub should the need arise at short notice.

There will be 100+ contractors lining up behind you who either have it or will be willing to get it. If the cost of getting the edge on the competition to win some good business is the few hundred quid then I think that is a good deal.

The first part of that does make sense to me and sounds reasonable. I just wish the client would say 'this is why we want you to have it' rather than 'its required' with no explanation.

Luckily, im 1 of less than 100 people in the UK with the required accreditation to do the job the end client insists on. The companies doing the work are reluctant to send more people to do the course as it costs several thousand each.

I get the jist of your point though..... I dont mind getting it.... just hate the no explanation thing.... im a rebel! lol

Thanks

[Tomo1971]

TBH, after reading a couple of the earlier posts I had already decided to get the extra two insurances....

Thinking it may help me stand out somewhat when the other two or three chaps taken on with me refuse.....

Ill have to do some calling round on Monday... as my existing PL, which has recently renewed is with Simply Business who at the time I found a good price. They were also willing to change a particular clause relating to the type of work I do, after an explanation.

But, SB want another £524 for the year for the remaining two insurances, making £800 for the year. (remember I have a particular clause in there and business equipment cover)

QDOS however, want less at about £400 but thats for all three but wont sell EL without PL, so cant get just the two I need from them, grrrrrrr.

Busy day on the phone coming up I guess.

Thanks chaps.

[malvolio]

Is it worth pointing out that the main reason for PI is to allow you to defend the case, not insure you against the resultant damages?

Also if the level of risk is the same, and they are laid off by the same underwriters at Lloyds (which they almost certinaly are), why can one be signifcantly cheaper than another? Is there something one is offering that the other isn't, be it too much or too little...?

[SueEllen]

Check the excesses and the clauses on things like equipment cover.
I know one of the insurers insures your business equipment and any related business goods in transit, which means you don't have to worry about someone crashing into you.