Contractor insurance

[bmwmike]

Hi

Wife is starting as an independent contractor and her client is requiring a contract for services, which states that she must have "personal liability" insurance (was also mentioned verbally at interview).

Is personal liability required or should it be professional indemnity ?

Thanks
Mike

[anonymous-user]

What does your wife do?

[CaptainSlow]

Unlimited £ liability...nice.

[pherlopolus]

Is she a limited company?

You can generally get agency/client friendly insurances for about £300 a year.

Contractor UK forums have a beginners guide to contracting which should be read ASAP and before signing contracts.

[Dromedary66]

As an IT contractor all my roles have required both Public Liability and Professional Indemnity insurance up to £1,000,000.

Used these lot to get the best quote. https://www.simplybusiness.co.uk/

[bmwmike]

She is an interior designer. Not a limited company. Sole trader I guess?

Is this clause unreasonable? I thought it was mad she had to sign a contract at all tbh

[anonymous-user]

bmwmike said:

She is an interior designer. Not a limited company. Sole trader I guess?

Is this clause unreasonable? I thought it was mad she had to sign a contract at all tbh

Public liability then, unless the design extends to walls and structural matters.

If it's just decoration and wotnot I am not sure I would bother with insurance although some policies come with decent legal helplines etc so it could be worth paying a but extra for one like that.

[Mr Pointy]

You don't know what mechanism your wife trades under? You do realise as a Sole Trader all her/your assets are on the line if something goes badly wrong?

Anyway, companies like Caunce O'hara can offer insurance. I'd suggest she looks at Public Liability & Professional Indemnity insurance for a start:

https://www.caunceohara.co.uk/freelancers/other-de...

The clause is not that unusual but it needs to be amended to remove the term "personal liability" & limited to the sum covered by the insurance. I would not sign up for unlimited liability.

[anonymous-user]

Mr Pointy said:

You don't know what mechanism your wife trades under? You do realise as a Sole Trader all her/your assets are on the line if something goes badly wrong?

Anyway, companies like Caunce O'hara can offer insurance. I'd suggest she looks at Public Liability & Professional Indemnity insurance for a start:

https://www.caunceohara.co.uk/freelancers/other-de...

The clause is not that unusual but it needs to be amended to remove the term "personal liability" & limited to the sum covered by the insurance. I would not sign up for unlimited liability.

I'd love to know of an interior designer who has been sued for professional negligence!?
Because the curtains don't match the sofa?

In the real world what's the exposure?

[bmwmike]

The risk is more likely to be around failing to deliver within a time frame that the primary client has agreed with their (third party) client, or later if an accident can be attributed to the materials specified and found to be at fault etc.

It's not just picking colours there are safety and materials suitability etc.

[anonymous-user]

bmwmike said:

The risk is more likely to be around failing to deliver within a time frame that the primary client has agreed with their (third party) client, or later if an accident can be attributed to the materials specified and found to be at fault etc.

It's not just picking colours there are safety and materials suitability etc.

Ok - she needs PI then.
She should certainly ensure that all the safety critical products she recommends offer a performance guarantee.

[bmwmike]

Thanks everyone. That's what she went for in the end.