I got a nice contract two years ago because of PI insurance. I didn't originally get the contract as the guy selected had more industry experience; the client made a condition of PI insurance prior to start and he refused to get it. The agent asked me if I had any concerns over getting insurance, I said no and was immediately offered the role pending proof that I'd acquired it in my company's name with a minimum of £1m cover at a reputable insurer. For the sake of a £450 insurance policy (specialised risks on the project made it a little bit more expensive), I secured a 12 month contract at £550 a day.
It was a shrug shoulder time and just bear the cost.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Prof Indemnity insurance stipulation
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Prof Indemnity insurance stipulation"
Collapse
-
Indemnity for Co or person?
There is a lot of failure to distinguish Ltd Co and person here.
Your Ltd Co signs the contract and provides the services. If it is at fault then it may be sued, but its liability is limited, after all.
Only in a few circumstances (tax evasion, fraud, i.e. criminal offences not civil liabilities) can any action go "through" the Ltd Co to the directors, and in even fewer cases to employees. ISTM that in those cases PI would not imdemnify the individual anyway.
So if by mistake you as an employee cause your Ltd Co to fail in its contractual duty to its client, then the client would have an extremely hard time suing you for it.
We never used to have it, some agent thought it up and now neither contractors nor agents have the backbone to say No, it's not necessary.
Leave a comment:
-
My agency contract also stipulates PI cover, and I had a phone argument with them about it (and lost). Its all the more prevalent for my niche, where the PI cover costs £2k, and there is only one insurer (a Lloyds syndicate) who will insure my profession, so they have an entire monopoly on the rates.
Leave a comment:
-
Originally posted by GillsMan View PostOn that note, you realise you don't have to sign your name after every post, as your name is clearly displayed next to your post, right?
Boo
Leave a comment:
-
Originally posted by GillsMan View PostCome again?
I know people who have got screwed by lawyers they chose to represent them simply because they didn't bother to read up/become knowledgeable on their own case themselves.
Leave a comment:
-
Originally posted by nolly View PostIts so typical as well now that you are in place before contracts are signed "conveniently" to asses how you are. Its part of the game of being a contractor the highs and lows. In this case its quite a minor thing, try and see what you can get but don't pay out trying to get. You should be able to do anything a solicitor can do.
Just because we tend to think legal doesnt mean we can ourselves enforce laws - just that they know the practice. You could do some research yourself and even act as your own legal team. Right is might and the law is the law unless their soliciter is bigger and there is ambiguity and you took sugar in your tea that day.
Leave a comment:
-
Might is right ?
Its so typical as well now that you are in place before contracts are signed "conveniently" to asses how you are. Its part of the game of being a contractor the highs and lows. In this case its quite a minor thing, try and see what you can get but don't pay out trying to get. You should be able to do anything a solicitor can do.
Just because we tend to think legal doesnt mean we can ourselves enforce laws - just that they know the practice. You could do some research yourself and even act as your own legal team. Right is might and the law is the law unless their soliciter is bigger and there is ambiguity and you took sugar in your tea that day.
Leave a comment:
-
Originally posted by theroyale View PostMy contract stipulates professional indemnity insurance but my agency hasn't said anything about it/brought it upLast edited by Robot; 26 June 2010, 09:13.
Leave a comment:
-
Originally posted by TheFaQQer View PostNo links, but how many permanent employees take out insurance to protect themselves from being sued by their employers?
Small companies and sole traders tend not to due to affordability.
In the case of small companies they tend to go into voluntary insolvency to avoid paying out which is why a few solicitors in the know will get their clients to put down named individuals in the company in any claim. This means if the company goes insolvent the person named on the claim still has to pay out their share of compensation and if that person happens to be the director well........
There as a small trader is legal liable for everything so there is nothing they can do to hide.
Leave a comment:
-
Originally posted by *Clare* View PostThere are still circumstances where a directors can be personally liable - a limited company is not absolute protection from absolutely everything.
Company Solicitors discuss directors' liability under UK Companies Act
I think the conclusion at the end sums it up really.
In Conclusion
A Court rarely lifts the corporate veil of a company, and there are established exceptions, some of which are discussed here. If it may be proven that fraud has taken place or the company is not being used for valid means within the bounds of the law a court may lift this veil exposing the directors of the company to liability. Fraud unravels all.
Leave a comment:
-
Originally posted by swamp View PostNot if you have a limited company.
Company Solicitors discuss directors' liability under UK Companies Act
Leave a comment:
-
Originally posted by pmeswani View PostWell, lets hope the client / agency doesn't try and sue you then. If your company doesn't have the money, they will come after you personally (as the Director). So either way, if you don't have the insurance, just make sure you have £2m in one of your bank accounts just in case.
The purpose of insurance is to offset the risk. Yes it is a waste of money, but the risk of not having it is not worth it unless you have the money to cover the liability.
If you are confident that you don't need the insurance and that you won't get sued and the agency won't find out, then it is a risk you have to decide to take.
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Will HMRC’s 9% interest rate bully you into submission? Today 09:10
- Autumn Budget 2024: Reeves raids contractor take-home pay Oct 31 14:11
- How Autumn Budget 2024 affects homes, property and mortgages Oct 31 09:23
- Autumn Budget 2024: Reeves raids contractor take-home pay Oct 31 09:20
- Autumn Budget 2024: Umbrella companies hit, Employer NICs hiked, and BADR heading for 18% Oct 30 16:54
- Autumn Budget 2024: chancellor’s full speech Oct 30 16:34
- RecExpo got told this about Labour’s Employment Rights Bill… Oct 30 09:10
- A limited company just got one over HMRC on VAT; here’s how Oct 29 09:24
- Business Account with ANNA Money Oct 28 15:51
- Top 5 Autumn Budget areas for IT contractors to tick off Oct 28 09:30
Leave a comment: