Reply to: P.I Insurance

[MikeP]

Really depends on what you do, and - more importantly - what can go wrong and what would the maximum cost to the business that they could directly attribute to your company if you screw up or simply end up being blamed for even if it wasn't your fault. This is why there are so many offerings.

Are you designing web pages for an intranet or are you updating retail prices in large retail stores? Profile/complexity of the work is irrelevant, it's the level of responsibility you carry. Could you end up with a decimal point error on the canteen lunch menu or uploading a buy-one-get-one-free offer AND halving the price on the tills

Hope that helps,
Mike

[BillHicksRIP]

I think the question was intended as - If don't have PI to cover sub-contractors how can you still claim the right of substitution?

That's what I was hoping to get answered. MyCo is due to start trading shortly and I've yet to purchase any insurance for it. Help!

[Pondlife]

They are sending me a changed contract. If it comes through with the same level of insurance stipulated I will not sign and I wil not start work.

Well, all the best matey and good luck.

[BoredBloke]

They are sending me a changed contract. If it comes through with the same level of insurance stipulated I will not sign and I wil not start work.

[Pondlife]

Nope through an agent!

Would that imply that you can get it altered then? Or has the end client stipulated it. Don't think that many freelancers or small Ltd Co would carry that sort of cover.

[BoredBloke]

Nope through an agent!

[Pondlife]

I take it that this is a direct contract and not through an agent?

[BoredBloke]

It's for a crappy 200 per day contract!

I fart about with Excel and Access. I'm not taking out £5million of PI insurance. Imagine the cost of that. I checked one place and the cost of 2million was £750. I'm not stumping up £750+ for something which I will never use

[Pondlife]

I have just got a contract where it states

"shall in respect of the period of the Assignment keep themselves insured:
(a) for professional indemnity claims, the sum of five million pounds (£5,000,000) per anum in aggregate, and
(b) for any other claim, the sum of five million pounds (£5,000,000) in respect of any one occurance or series of occurances arising out of any one event or series of connected events."

WTF do you do?

[BoredBloke]

I have just got a contract where it states

"shall in respect of the period of the Assignment keep themselves insured:
(a) for professional indemnity claims, the sum of five million pounds (£5,000,000) per anum in aggregate, and
(b) for any other claim, the sum of five million pounds (£5,000,000) in respect of any one occurance or series of occurances arising out of any one event or series of connected events."

[Pondlife]

I think the question was intended as - If don't have PI to cover sub-contractors how can you still claim the right of substitution?

[malvolio]

Anyone got any comments about this?

No it doesn't. If you are subbing your work, you are clearly able to send substitute workers so you are clearly not providing personal service so you cannot be liable for IR35.

[BillHicksRIP]

Anyone got any comments about this?

[BillHicksRIP]

Looking at the Randell Dorling quote form, it has 2 questions, "Do subcontractors carry out any work on your behalf?" and "Is professional indemnity required for such subcontractors? If yes, please provide details, including number of persons and such subcontractor income that is part of your 'Last Years Annual Turnover'. "

Does the answer of yes or no have any bearing on the right of substitution clause in an IR35-friendly contract?

[malvolio]

Yes - the £200 is for a one-man-band in a fairly normal sort of contract. Adding staff increases the business risk, so the fees go up. The package also inclues PEI and ELI, the latter will obviously increase as you add people, even if the business risk doesn't change.

Pull the application form off the PCG website, ISTR there's a scale of charges in there.