Reply to: Insurance cover

[BR14]

Although I doubt that insurance is needed once you are employed by an umbrella so check if you can cancel in those circumstances.

AFAIR it is still required.
CU offer it as part of their package..
https://www.contractorumbrella.com/r...any-insurance/

[cojak]

Although I doubt that insurance is needed once you are employed by an umbrella so check if you can cancel in those circumstances.

[ButlerEvansInsurance]

Doesn't that cover your substitutes if you have/need them in the future ?

This post opens a few questions we get asked all the time as Insurance Brokers.

The thing about Employer’s Liability is that the premium is linked to wagerolls. So if you don’t currently employ anyone and have a low wageroll it will be virtually thrown in for free in any Contractor Insurance package.

Also, there is often confusion between who is an employee for PAYE rules and who is an employee for whose safety you are legally responsible. Anyone who you take on to undertake work under your contract - so you get paid and then pay them for their time, is an employee for whim you need to buy Employers Liability.

As the thread above points out that could mean someone who steps in if you are ill or when you are away or if you are too busy to work on all your contracts. So we would always advise you consider this cover.

On the subject of Professional Indemnity, this covers financial losses incurred by your customers if you advice, specification/design or service is in error. If a customer levels a claim against you that is unsubstantiated, Insurers will help you defend this.

Professional Indemnity should always be purchased in combination with Public Liability Insurance. Public Liability covers bodily injury or property damage to others as a result of your negligence. It might sound a remote possibility but we have seen a claim of £30,000 where a customers member of staff fell over an IT consultants bags and broke their elbow!

Hope that helps! Paul

[PerfectStorm]

Re: employers liability - told my one it's not applicable to the scenario and gave them the certificates for Public Liability and Professional Indemnity - they took that without a further question

[PIAltd]

insurance for contractors

As a contractor can be anything from a Tradesman to a Web Developer, the different types of cover can be Professional Indemnity, Public Liability, Internet & Email (cyber liability) etc..

[Lance]

As I said, flimsy - but for the fourpence it costs, why take the risk.

The reason I have it is even simpler.
Client: you need it or you have to prove why you don't need it.
Me: How do I prove I don't need it?
Client: err..... hang on...... I can't find the process.... err..... nobody's asked before... err....
Me: I've just bought it while you blathered.
Client: cool. see you Monday

[WordIsBond]

Or, you can flip it around and say, "Of course it's a genuine right of substitution. That's why I have EL cover, because I need to be covered if I end up needing to send a substitute."

It's still flimsy, but then the flimsy argument is on your side rather than against you.

Since we don't have a clear, legislatively-specified definition of employment / hidden employment, there will always be cases that are borderline. It's always a good idea to have an IR35 dossier with even the very weak / flimsy arguments, in a borderline case who knows what will tip it your direction? Every little helps if it's a close call.

[malvolio]

How can they insist on that if you don't employ anyone???

It's a convoluted and rather flimsy argument , but it goes like:

If you use a sub-contractor, you need that cover: regardless of how they are engaged, any worker under your control counts as an employee for ELI purposes.

And that's significant because if you have a substitution clause then you may have to engage a subbie to fulfil it (remembering they work under your original contract, not a new one for them) and if you don't have ELI in place then your sub clause is clearly a sham and therefore no part of an IR35 defence...

As I said, flimsy - but for the fourpence it costs, why take the risk.

[ssarah1]

You've already started a thread asking the same question. Not sure hijacking other threads will help.

Agreed...... new to this forum thing!

[northernladuk]

You've already started a thread asking the same question. Not sure hijacking other threads will help.

[malvolio]

Doesn't that cover your substitutes if you have/need them in the future ?

Yes it does; substitutes are working through your company under your contract so are treated as Employees for insurance purposes. There's a slightly convoluted argument that says not having ELI invalidates your RoS, but that's a little abstruse since you can always buy it when you need it and it only costs fourpence anyway.

[radish2008]

How can they insist on that if you don't employ anyone???

Doesn't that cover your substitutes if you have/need them in the future ?

[fatJock]

How can they insist on that if you don't employ anyone???

For the small sum involved it wasn't worth the argument .....

[northernladuk]

How can they insist on that if you don't employ anyone???

It's probably a requirement for all suppliers. Just tell them you are exempt and get on with it.

[SeanT]

My current one insists on .. employers .. liability insurance for instance.

How can they insist on that if you don't employ anyone???