PI insurance, do you have it?

[Grinder]

I found the best price by clicking "Insurance" on the C-UK home page.

The insurer was very sensible with the variations I needed.

[swamp]

What they said
Of those who have it, I doubt anyone has ever had to claim off of it. This is one of the bigest insurance rip offs going.

Try to get out of it if you can.
I once had a demand to prove PI but I just ignored it and never heard about it again.
In a worse case I'd just close down company but I'm 99.99% sure none of us will ever find ourselves (out Ltd companys) in a situation where we are being sued.

...

If we think "it's only 20quid a month", soon we'll find out a good percentage of profit has been wasted on these individually cheap policies we think are necessary. Heck, 240 a year, that good beer tokens.

The thing to bear in mind is there exists in every decent contractor a bit of the fly-by-night. By definition we take risks. We big ourselves up, take our chances, and try to ride our luck. Sure there are some pompous prigs out there who like to harp on about their professional reputation, and who sport high-waistband trousers and wear their mobile phone on their belt. But for the rest of us things like PI insurance are just a waste of money.

[kaiser78]

Who provides the most competitive quotes at the moment please ?

[Mr.Whippy]

Try to get out of it if you can.
I once had a demand to prove PI but I just ignored it and never heard about it again

One agency I've worked through totally refuses to send out any contracts/extension without seeing a valid PI policy.

A couple of guys I know get a new policy, prove they have it, get the contract/extension and then promptly cancel the PI.

Personally, I also think it's a total con, but I just keep mine going as it's barely a morning's work and it's not worth the risk of losing 10's of £k's worth of business by not having it.

[SuperZ]

PI insurance is a big fat rip off.

If you contract through an agency it will be the agency that gets sued, not your Ltd. Meanwhile you can just close your Ltd company and forget about it.

Anyway, what would a client or agent get from suing a contractor? Even if you had £100K war chest (and let them grab it), this sum would be eaten up by legal fees.

In my experience some contractors like PI insurance because it makes them feel big and special, a bit like the feeling you get when you start your first Ltd company. Doesn't stop it being a big fat rip off though.

What they said
Of those who have it, I doubt anyone has ever had to claim off of it. This is one of the bigest insurance rip offs going.

Try to get out of it if you can.
I once had a demand to prove PI but I just ignored it and never heard about it again.
In a worse case I'd just close down company but I'm 99.99% sure none of us will ever find ourselves (out Ltd companys) in a situation where we are being sued.

I know some guys two years ago who provided their own outsourced development service. Things soon went a little pear shaped with their client but nothiing happened there either, the permies took over. Any issues, the permies were made to sort it out. I know there are many things we could be sued for, but to most companies we're just upper class temps. Once we're gone they forget about us.

If we think "it's only 20quid a month", soon we'll find out a good percentage of profit has been wasted on these individually cheap policies we think are necessary. Heck, 240 a year, that good beer tokens.

[gingerjedi]

Well they sent the contract through at 17:15 on Friday (Monday start) along with a demand to see my PI insurance cert.

I replied with a signed contract and an explanation as to why I felt PI was an unnecessary cost to the business, I hope they would rather ignore it than explain to the client as to why I didn't turn up.

[swamp]

PI insurance is a big fat rip off.

If you contract through an agency it will be the agency that gets sued, not your Ltd. Meanwhile you can just close your Ltd company and forget about it.

Anyway, what would a client or agent get from suing a contractor? Even if you had £100K war chest (and let them grab it), this sum would be eaten up by legal fees.

In my experience some contractors like PI insurance because it makes them feel big and special, a bit like the feeling you get when you start your first Ltd company. Doesn't stop it being a big fat rip off though.

[downsouth]

is it worth not having it for the sake of @£20 a month?

like all insurances they can be seen as a waste of time but only needs something to go wrong once and then you'll be regretting the £20 or so a month, aint a lot to ask is it

[ctdctd]

I have it - mainly as contracts have asked for it.
One gig even checked the paperwork.

It's only 20 quid a month, but I wouldn't keep it going beyond three months after the last gig.

As Gingerjedi, I mainly do support work. Might be different if I wrote software or implemented systems that could go tits up a while after I'd scarpered.

[mudskipper]

Yes, I bought it about a month ago. I'm trying to build up a client base working direct, so thought it would help me be taken seriously. Wonder if anyone contracting has ever claimed on it...

[centurian]

Has anyone tried to get these clauses amended, by insisting on a smaller time limit - say claims must be initiated within 6 months from the termination of any contract. At least that prevents having to maintain the insurance for 7 years after your last contract.

Presumably if you're Ltd and you close the company to go permie, you don't need the insurance anyway, since any claim will be against LtdCo.

[RichardCranium]

I have it because I was contractually committed to having it a few years ago. I am going to let it lapse come renewal time.

You are supposed to keep it going for something like 7 years to protect your LtdCo from being sued; in this case ClientCo wants you to have it so they can sue you up to that time limit.

As you say, for a 2 month s/w rollout that is excessive; it is probably something they put in every business contract.

It is a bugger of a decision, isn't it? Should you commit to those £2k of premiums (for 8 weeks work)? Although it is tempting to suggest the ClientCo should pay a heft proportion of those premiums, that doesn't seem very professional for someone supposedly running a business.

Is it worth asking the agent / client if they really need it?

[gingerjedi]

After 2 years of not needing it my latest contract requires PI insurance, the contract goes on to say I must maintain this for 6 years after the project finishes, seems a bit ridiculous for 2 month software rollout.

I could understand if I was dev at an IB where my mistake could cost literally millions but scripted support work? Seems a bit much don't you think?