Reply to: Insurance - PI/PL

[Wobblyheed]

I've just got a quote via the Simply Business Website, £4160 !!!!! Currently I pay ~£400 for the same cover!

I pay £156 with Simply Business

[Fred Bloggs]

I am also shopping around for quotes and the cheapest I have seen by far has come from Finsbury Insurance Group via Simply Business. About half the Hiscox cost. Finsbury is backed by Aviva so should be Ok but I suspect that their cover is not as comprehensive as that of Hiscox. Anyone else using Finsbury?

I've just got a quote via the Simply Business Website, £4160 !!!!! Currently I pay ~£400 for the same cover!

[Mark Eldred]

Other options

I am also shopping around for quotes and the cheapest I have seen by far has come from Finsbury Insurance Group via Simply Business. About half the Hiscox cost. Finsbury is backed by Aviva so should be Ok but I suspect that their cover is not as comprehensive as that of Hiscox. Anyone else using Finsbury?

[sy8111]

Just picked up on this thread. I'll do a fuller response to queries on Monday.

However, just need to quickly point out that the above quote is not accurate. The wording relates to multiple claims made in respect of a single cause. If you were to receive two (or two hundred) unrelated claims you would be covered for £1m in each and every case.

Hi, thanks for clarification. what is single cause normally? Can you give some plain examples?

[malvolio]

Just picked up on this thread. I'll do a fuller response to queries on Monday.

However, just need to quickly point out that the above quote is not accurate. The wording relates to multiple claims made in respect of a single cause. If you were to receive two (or two hundred) unrelated claims you would be covered for £1m in each and every case.

OK, thanks for the clarification. But that's not actually what it looks like it says...

[Qdos Contractor]

Is that the red part in black or the red part in grey?

What they are saying is no matter how many people are involved or how many separate claims are being made against them, they'll only pay out up to the total amount in the policy. So if you end up with four claims for £1m each and you've only got £1m cover, all yuo'll ever get back is £1m.

And don't ask us to explain legal things, ask the people selling them.

Just picked up on this thread. I'll do a fuller response to queries on Monday.

However, just need to quickly point out that the above quote is not accurate. The wording relates to multiple claims made in respect of a single cause. If you were to receive two (or two hundred) unrelated claims you would be covered for £1m in each and every case.

[malvolio]

When I read Policy wording of QDos PI, I find below words I couldn't understand:



What does red part mean?

Is that the red part in black or the red part in grey?

What they are saying is no matter how many people are involved or how many separate claims are being made against them, they'll only pay out up to the total amount in the policy. So if you end up with four claims for £1m each and you've only got £1m cover, all yuo'll ever get back is £1m.

And don't ask us to explain legal things, ask the people selling them.

[sy8111]

When I read Policy wording of QDos PI, I find below words I couldn't understand:

Indemnity limitShall mean the Insurer’s total liability to pay damages, claimant’s costs, fees and expenses, and shall
not exceed the sum(s) stated in the Schedule in respect of any one claim or series of claims arising
out of one originating cause regardless of the number of persons claiming an indemnity from the
Insurer under the terms of this Policy.

What does red part mean?

[tractor]

...

Couple of points.

If the agent does not specifically exclude or even mention pooled cover, then it is ok to go with it.

Last time I pressed RD about this, I actually asked what is the level of the pool that is currently 'at risk'. I was surprised that they actually answered.

IIRC, it is not now a legal requirement to hold EL unless you actually do employ staff.

My take on PI insurance is that if things go spectacularly wrong enough for a client/agent to invoke the cover, then let them all fight it out amongst themselves. As long as your actions have been appropriate and documented, the risk to you and your co are minimised. TBH that is the most you can do.

[malvolio]

Thanks for your explanation and I've carefully read it, but I still have some questions:

1) Like you said, PCG uses shared pool method. I read PCG policy document but only find it uses shared pool for Agency Default compensation, not for other claim, like HMRC IR35/Tax related investigation. Am I correct?

No, not even close. PCG doesn't insure you for PI/PLI/EL, Randell Dorling does at a discounted rate for PCG members. PI/PLI/EL is nothing to do with IR35 cover (PCG covers its members directly for that) nor Agency Default cover (another free PCG member benefit for Plus members)

2) Why would agency objects pooled cover, not contractors who want to buy the policy? Is it anything to do with agency ?

Their arguemtn is that they want £1m cover for you, not £100k with a possibility of cover up to £1m if nobody else makes a claim at the same time

3) You said qdos is cheaper and doesn't give same cover as Hiscox policy. Do you have a couple of examples? I am really ignorant on insurance stuff.

So am I. But I'm not going to read several dozen pages of policy documents to identify the differences in two policies; you can do that for yourself. But there must be a difference; perhaps Qdos would like to explain why they can undercut Hiscox by 50%.

On the other hand I pay £425 a year for MyCo's PI/PLI/EL policy from Randell Dorling and it's accpetable to everyone. For a £200 a year saving, I really can't be bothered with scratching around.

[northernladuk]

Says the person who only usually posts a google search link.

and your problem with that is? It usually answers the OP's question which is the whole point.

[sy8111]

RD is fine for most jobbing contractors. However they keep the price down by giving you £100k cover of your own, topped upto £1m cover from a shared pool (so if two people claim at the same time it's £500k and so on. QDOS insures you for the full value. however, QDOS cover is not the same as the Hiscox policy that sits behind the RD one and if you want RD to cover yuo for the full £1m, it's cost about twice the PCG costs (so clearly covers a wider/different risk than QDOS).

So the PCG/RD one is fine if it's cheaper, unless your agency objects to the pooled cover concept (some do). In which case go QDOS.

Thanks for your explanation and I've carefully read it, but I still have some questions:

1) Like you said, PCG uses shared pool method. I read PCG policy document but only find it uses shared pool for Agency Default compensation, not for other claim, like HMRC IR35/Tax related investigation. Am I correct?

2) Why would agency objects pooled cover, not contractors who want to buy the policy? Is it anything to do with agency ?

3) You said qdos is cheaper and doesn't give same cover as Hiscox policy. Do you have a couple of examples? I am really ignorant on insurance stuff.

Thanks a lot.

[malvolio]

thanks a lot, I will have a look at this.

Cheers
C

But check who the underwriter is. for example, both RD and Chaunce are supplying the same Hiscox policies.

[carlosLondon]

Have a good shop around - there are plenty of providers out here. Some that our clients have used in the past are;

1) Hiscox – Hiscox Business Insurance for small and medium businesses
2) Professional Indemnity for IT contractors and accountants
3) Zurich Professional - Zurich Professional - Welcome
4) Qdos Consulting - Qdos Consulting - Taxation and VAT - Employment Law - Insurance - IR35
5) Randell Dorling Ltd - Randelldorling Ltd
6) Caunce O'Hara - Professional Indemnity Insurance - Freelance Insurance - Caunce O'Hara
7) Coulson Pritchard Associates - Professional Indemnity Insurance (PI),Professional Liability,UK
8) Freelance Insure - Professional Indemnity Insurance (PI Insurance) UK Quotes

thanks a lot, I will have a look at this.

Cheers
C

[prozak]

You don't give very much advice Prozak, much guff but no solid advice... The time you do it is possibly the worst I have seen.

It is fine because it is regulated??? While the bank crash is going on? Way to go........

Says the person who only usually posts a google search link.