Reply to: Professional Indemnity insurance

[scooterscot]

Oh sheet sheet sheet it's happening.

The client has returned, a SOW is being drafted... This is the largest [in terms of cost] job I've ever taken on.

Remain claim scooter...

[malvolio]

Has anyone had a situation where they were turned down for PI?

I am potentially looking at a 5 figured premium per annum for the work I need to carry out and it would need to be rolling policy for the next 10 years. Yes ouch.

This is a large UK defence company. They have suggested engaging my company directly, bypassing the agent, so that they can separate me from the 'other contractors' and not have to change their corporate insurance policy.

Thing is I'd be quoting well into a 6-figured sum, they know this. This is a major change from anything the company has provided for before.

How do I begin? How do I begin to gauge what the correct quote should be?

If they are demanding it to cover their own risks on a direct contract, I suggest you simply add the cost to your charges. It is a cost of sales and you wouldn't be spending it otherwise, so it's legitimate to charge on, if not the whole amount, then certainly the difference between your normal cost and the new one.

[scooterscot]

Has anyone had a situation where they were turned down for PI?

I am potentially looking at a 5 figured premium per annum for the work I need to carry out and it would need to be rolling policy for the next 10 years. Yes ouch.

This is a large UK defence company. They have suggested engaging my company directly, bypassing the agent, so that they can separate me from the 'other contractors' and not have to change their corporate insurance policy.

Thing is I'd be quoting well into a 6-figured sum, they know this. This is a major change from anything the company has provided for before.

How do I begin? How do I begin to gauge what the correct quote should be?

[pattie]

i signed up with an umbrella company with these guys

http://www.antonyjholdsworth.co.uk/executive_portal.asp

all insurances are of course included.


makes life a lot less hassle.

pattie.

[kookachoo]

Caunce O'Hara are a total rip off! Never again!!

I saw something on iProfile that had a link to some cheap insurance..

I'm currently with Insurance2day, think it was about £300 all in.

[FarmerPalmer]

Apologies for fluffing this thread - I am about to go back to being limited and have been told I need professional indemnity up to £1m.

p1mp recommended http://www.caunceohara.co.uk/ - who seem to charge about £546. http://www.qdosconsulting.com/ seem to charge £132(though I have emailed them to confirm).

anyone else got any recommendations?

thanks

My company was with insured through Caunce O'Hara last year,
and this year it took out a policy with QDOS instead ...
£546 to £132 ... hmmm can't think why !

[BrowneIssue]

Fetches the paperwork...

Dallas Kirkland
www.dallaskirkland.com
Tel: 020 7 480 4180

Employers' Liability ... £10m (far too high I reckon)
Public Liability ........ £1m
Products Liability ...... £1m (what's that for?)
Professional Indemnity .. £1m

Annual premium, including tax: £349:15

(And they rounded the months up so it runs for 12 months and a couple of weeks.)

When it came to renew it last November, the premium had not changed!

I get a discounted rate either as an MBCS, a CITP or, more likely, an MIAP.

[FarmerPalmer]

How do you work out how much Public Indemnity cover you need ?

Thanks

by what it states in your contract, else norm as supplied by standard policy

[tonibat]

How do you work out how much Public Indemnity cover you need ?

Thanks

[Qdos Contractor]

Think I am being ripped off by the sounds of things

My contract specifies a £2m PL and I'm paying £800 pa

Too much?

BTW I am a Unix admin, nothing too dangerous.

Sounds like a hell of a lot. You're paying £2m just for Public Liability? Or is there Professional Indemnity as well? For comparative purposes, we do a £2m PL policy for IT contractors for £50.

If it's £2m PI that's still a lot (ours is £168).

[TCL]

Think I am being ripped off by the sounds of things

My contract specifies a £2m PL and I'm paying £800 pa

Too much?

BTW I am a Unix admin, nothing too dangerous.

[Qdos Contractor]

I had a public liability insurance claim for an accident where someone fell on the premises. By the time they made a claim, I'd switched insurance providers to another company. However, the insurance co who were providing cover at the time of the fall picked up the claim even though I was no longer insuring through them.

My insurance agent told me this is normal practice.

Public Liability and Professional Indemnity work in different ways. PL is on a 'loss occurring' basis, whereas PI is 'claims made'. Your example in the case of a PL claim is correct, but with PI you would claim on the insurance that was in place at the time of notification.

Most PI providers will offer to cover all retrospective work.

[Fred Bloggs]

My insurance agent told me this is normal practice.

Correct.

[BolshieBastard]

It's worth remembering that the policy needs to stay in place for 7 years (this is the limit of liability) if you stop paying it, and 5 years later something that is caused by you causes issues, then the client company can still sue you.

A word of warning to the guy who made the agency pay - if they've paid for you to have your own policy, you need to make sure you keep it in place for 7 years afterwards - they WILL stop paying it.....

You sure that's the case that the insurance must be kept up for 7 years?

I had a public liability insurance claim for an accident where someone fell on the premises. By the time they made a claim, I'd switched insurance providers to another company. However, the insurance co who were providing cover at the time of the fall picked up the claim even though I was no longer insuring through them.

My insurance agent told me this is normal practice.

If your scenario is correct, this makes Prof Indemnity too impractical. As most of us work through Ltd companies, wouldnt the limited liability kick in?

[The Agents View]

I had Elan refuse to accept the PCG policy because it is a group policy so I had to get it elsewhere.

This is probably a good idea anyway - group policies have a liability limit, essentially £1m cover could be £1m between 10 people. If someone puts in a claim for £750,000 then I THINK the cover drops to £250k - but Im no insurance expert - this would explain why Elan refused it.

It's worth remembering that the policy needs to stay in place for 7 years (this is the limit of liability) if you stop paying it, and 5 years later something that is caused by you causes issues, then the client company can still sue you.

A word of warning to the guy who made the agency pay - if they've paid for you to have your own policy, you need to make sure you keep it in place for 7 years afterwards - they WILL stop paying it.....