Reply to: Professional indemnity insurance mandatory?

[BolshieBastard]

For the newbies here do you mind explaining what PI, PL are?

Apologies.

Public Liabilty is normally where members of the public come onto your premises and slip so they sue you or you're working on client site and drop a pc out of the window(!) and hit a passing member of the public on the head. Client employees are not 'members of the public' although I guess one could try and sue you via this and Professional Indemnity.

PI is where you're negligence or sloppy work ends up creating havoc for the client causing them to lose moeny or not perform the duties they supply their end clients so they want to sue you.

[Balrog92]

I've found an explanation of what PI insurance is here: ww w.constructaquote.com/liability-insurance/public.aspx

[Wanderer]

Thank you so it is :

Professional Indemnity
Professional Liability? (i could not find this one in the link you sent me)

Sorry, the answer to the second one isn't there indeed. As Hex says, it's "Public Liability", there is a good explanation of it here.

The one to watch for is Employer's Liability, since your company probably won't have any employees (other than your self and perhaps spouse) so you aren't likely to sue your own LTD co.

Personally, I wouldn't bother with it if I could get away with not having it. If they sue my company then I'll just cease trading and start a new one.

Some agencies have told me that MyCo must have it but never ask to see proof so I didn't bother. Now they ask to see proof so I took out a policy.

[northernladuk]

Thank you so it is :

Professional Indemnity
Professional Liability? (i could not find this one in the link you sent me)

Check the QDOS website, they explain it there and they also sell it. £250 a pop I believe.

[Hex]

Thank you so it is :
Professional Liability? (i could not find this one in the link you sent me)

Public Liability

[kellycell]

I think all the newbies have taken a few minutes to read the First Timers Guide which contains lots of useful information that will answer their questions.

Thank you so it is :

Professional Indemnity
Professional Liability? (i could not find this one in the link you sent me)

[Wanderer]

For the newbies here do you mind explaining what PI, PL are?

I think all the newbies have taken a few minutes to read the First Timers Guide which contains lots of useful information that will answer their questions.

[SueEllen]

Here it is, thank you very much:

"The Consultancy shall indemnify the Client against all loss and liability suffered or incurred as a result of the Consultant’s acts or omissions. The total liability under this clause shall not exceed the total sums payable for the Services."

The client can't claim more from you than the sum they paid you. Which is actually good because in theory if you mucked up a live system and didn't have that clause they could claim much more.

The client(s) should be mentioned in the contract.

BTW are you sure the other European agency is a just an agency and not also a consultancy? Some companies work as both agencies (as we understand them in the UK) and consultancies, which is why they state they are the client.

[kellycell]

There is no legal requirement to carry this insurance. The agents are not being entirely truthful.

The only insurance you are legally bound to have is Employer's Liability IF your co has two employees employed doing the business. Your wife as director doesnt count!

A number of agents are now saying their clients want this insurance cover. I've just had to take some PI and PL insurance to the tune of about £190 a year I think. I refused to take EL as Im the only employee of the co.

That said, I wouldnt lose a contract over having to get the insurance.

For the newbies here do you mind explaining what PI, PL are?


Admin note - more info here:
Professional liability insurance
Public liability insurance

[BolshieBastard]

There is no legal requirement to carry this insurance. The agents are not being entirely truthful.

The only insurance you are legally bound to have is Employer's Liability IF your co has two employees employed doing the business. Your wife as director doesnt count!

A number of agents are now saying their clients want this insurance cover. I've just had to take some PI and PL insurance to the tune of about £190 a year I think. I refused to take EL as Im the only employee of the co.

That said, I wouldnt lose a contract over having to get the insurance.

[kellycell]

You haven't written the liability clause in the contract only your interpretation of it.

If you want someone to give you a good indication* of what your liability clause means then you need to post the exact liability clause obviously removing names.

*We are not legal experts and you aren't paying us so take everything with a pinch of salt.

Here it is, thank you very much:

"The Consultancy shall indemnify the Client against all loss and liability suffered or incurred as a result of the Consultant’s acts or omissions. The total liability under this clause shall not exceed the total sums payable for the Services."

[SueEllen]

So what does that liability clause mean?
that if things f%*k up in the project I will be responsible for paying the damages back to the company I am contracting at? Sorry I am new to this.

You haven't written the liability clause in the contract only your interpretation of it.

If you want someone to give you a good indication* of what your liability clause means then you need to post the exact liability clause obviously removing names.

*We are not legal experts and you aren't paying us so take everything with a pinch of salt.

[kellycell]

So what does that liability clause mean?
that if things f%*k up in the project I will be responsible for paying the damages back to the company I am contracting at? Sorry I am new to this.

[northernladuk]

Erm.. is't it something like £250 per year??? down in the 100's in reality.... Bit of a no brainer...

[peterreddyhoff]

Professional Indemnity Insurance

It is worth noting that PI insurance is on "claims made" basis you must keep it up to protect you from past claims. It only costs around a tenner a month and if you are in IT can get immediate cover on line by answering 5 questions.