IT Contracting - Insurance?
Discussion
Hello,
Going back into the world of contracting shortly and was wondering what Insurance people have and what firms they use / rough cost.
Last time I did it I was under an umbrella but this time it's a Limited company and have been asked to supply details of 'Limited Company Insurance'
Would this be the same as Professional Indemnity Insurance?
Thanks in advance!
Going back into the world of contracting shortly and was wondering what Insurance people have and what firms they use / rough cost.
Last time I did it I was under an umbrella but this time it's a Limited company and have been asked to supply details of 'Limited Company Insurance'
Would this be the same as Professional Indemnity Insurance?
Thanks in advance!
Hiscox direct are good for your trade.
As a broker I'd highly recommend using an insurance broker who will advise and review the market for quotations.
If you have employees you'll need employers liability
Public liability and probably worth having some professional indemnity.
I'd also advise you looking into directors and officers insurance too.
As a broker I'd highly recommend using an insurance broker who will advise and review the market for quotations.
If you have employees you'll need employers liability
Public liability and probably worth having some professional indemnity.
I'd also advise you looking into directors and officers insurance too.
CorradoTDI said:
Thanks guys, Hiscox seem to come up as the top one when you google but not particularly cheap...
It's only myself, working fully remote and using my own device so fairly low risk I'd say.
Just need to work out exactly what I need
Just checked and my Hiscox is 37 a month for the following:It's only myself, working fully remote and using my own device so fairly low risk I'd say.
Just need to work out exactly what I need
Cover Insurance amount Excess Annual Premium
Professional indemnity £1,000,000
Public and products liability £1,000,000
Crisis containment £25,000
Most agencies will just have a minimum figure for PI that you must be indemnified to. I found it to be a box ticking/arse covering exercise.
Incidentally, in nearly 30yrs of contracting, I have never known or heard of any end client making any claim against a one man band contractor. Anyone capable of FUBARing something so badly is invariably found out and terminated long before their code can do anything catastrophic.
I'm sure it possibly has happened, but I reckon this type of cover/industry combo is a good old money spinner for the underwriters.
Especially in the Agile world ... "it's got some bugs, put them on the backlog!"
(not that I endorse that approach, but it's what happens!)
Incidentally, in nearly 30yrs of contracting, I have never known or heard of any end client making any claim against a one man band contractor. Anyone capable of FUBARing something so badly is invariably found out and terminated long before their code can do anything catastrophic.
I'm sure it possibly has happened, but I reckon this type of cover/industry combo is a good old money spinner for the underwriters.
Especially in the Agile world ... "it's got some bugs, put them on the backlog!"
(not that I endorse that approach, but it's what happens!)
Have a look at Caunce O'Hara:
https://www.caunceohara.co.uk/freelancers/it-contr...
Public Liability is important in case someone gets injured due to something you did. Also make sure your car insurance covers you - Class 1 or 2 probably.
https://www.caunceohara.co.uk/freelancers/it-contr...
Public Liability is important in case someone gets injured due to something you did. Also make sure your car insurance covers you - Class 1 or 2 probably.
PurpleTurtle said:
Most agencies will just have a minimum figure for PI that you must be indemnified to. I found it to be a box ticking/arse covering exercise.
Incidentally, in nearly 30yrs of contracting, I have never known or heard of any end client making any claim against a one man band contractor. Anyone capable of FUBARing something so badly is invariably found out and terminated long before their code can do anything catastrophic.
I'm sure it possibly has happened, but I reckon this type of cover/industry combo is a good old money spinner for the underwriters.
Especially in the Agile world ... "it's got some bugs, put them on the backlog!"
(not that I endorse that approach, but it's what happens!)
And since it's a b2b agreement, anyone finding themselves in the sIncidentally, in nearly 30yrs of contracting, I have never known or heard of any end client making any claim against a one man band contractor. Anyone capable of FUBARing something so badly is invariably found out and terminated long before their code can do anything catastrophic.
I'm sure it possibly has happened, but I reckon this type of cover/industry combo is a good old money spinner for the underwriters.
Especially in the Agile world ... "it's got some bugs, put them on the backlog!"
(not that I endorse that approach, but it's what happens!)
t would probably just phoenix the company and walk away.Either way, I use Hiscox too, £22/month for £1m cover which is what my contract asks for.
ecs said:
PurpleTurtle said:
Most agencies will just have a minimum figure for PI that you must be indemnified to. I found it to be a box ticking/arse covering exercise.
Incidentally, in nearly 30yrs of contracting, I have never known or heard of any end client making any claim against a one man band contractor. Anyone capable of FUBARing something so badly is invariably found out and terminated long before their code can do anything catastrophic.
I'm sure it possibly has happened, but I reckon this type of cover/industry combo is a good old money spinner for the underwriters.
Especially in the Agile world ... "it's got some bugs, put them on the backlog!"
(not that I endorse that approach, but it's what happens!)
And since it's a b2b agreement, anyone finding themselves in the sIncidentally, in nearly 30yrs of contracting, I have never known or heard of any end client making any claim against a one man band contractor. Anyone capable of FUBARing something so badly is invariably found out and terminated long before their code can do anything catastrophic.
I'm sure it possibly has happened, but I reckon this type of cover/industry combo is a good old money spinner for the underwriters.
Especially in the Agile world ... "it's got some bugs, put them on the backlog!"
(not that I endorse that approach, but it's what happens!)
t would probably just phoenix the company and walk away.Either way, I use Hiscox too, £22/month for £1m cover which is what my contract asks for.
Before I was forced into a Brolly, I was paying circa £500/yr via AXA for £2m cover, so that Hiscox figure seems about right.
My agency: "We need you to have £2m of PI cover"
Me "the industry standard seems to be £1m, any room for negotiation?"
My agency: "End Client's HR dept need you to have £2m, take it or leave it"
Me "Why so high? I've been with the end client for 20yrs (yeah, I know) and they've never once intimated that they would sue anyone. Plenty of people 'let go', nobody sued, ever. Nothing makes Production without umpteen levels of QA checking, they'd be hard pressed to justify "it's all his fault, we want compo".
My agency: "Sorry, take it or leave it".
Sigh.
One of the many ball aches I no longer have to deal with working via a brolly.
Just go with what the client insists upon. Little point arguing with them about it as HR/Risk/whoever just give it the "computer says no".
I paid £277 last year for £5m public liability and £2m professional indemnity.
Premiums will depend in part on what you put for a job title (which should be driven by what you actually do of course).
I paid £277 last year for £5m public liability and £2m professional indemnity.
Premiums will depend in part on what you put for a job title (which should be driven by what you actually do of course).
PurpleTurtle said:
Most agencies will just have a minimum figure for PI that you must be indemnified to. I found it to be a box ticking/arse covering exercise.
Incidentally, in nearly 30yrs of contracting, I have never known or heard of any end client making any claim against a one man band contractor. Anyone capable of FUBARing something so badly is invariably found out and terminated long before their code can do anything catastrophic.
This is my experience as well. Incidentally, in nearly 30yrs of contracting, I have never known or heard of any end client making any claim against a one man band contractor. Anyone capable of FUBARing something so badly is invariably found out and terminated long before their code can do anything catastrophic.
The whole thing is, to my mind, a bit of a scam and it's relatively recent. If someone reckons, with all the lifecycle dev-test-release type stuff that you can pin the blame for some massive failure on one contractor then I'd point to the complete failure of their systems. £2m is going nowhere anyway. As said by PurpleTurtle - decades in contracting and never heard of anyone actually needing insurance other than to tick some agency box.
Just out of interest take a look at if it's actually the client that wants the insurance or the agency - I know my company doesn't require it, but I know that agencies do (I went contract to perm) and curiously all have their own "preferred insurers" if you need it.
FWIW I just used to have a fake certificate of insurance to send a copy of to the agency. I certainly didn't lose sleep over it.
(Don't even get me started on recruiters stonewalling you because they want, for example, and ISEB foundation certificate, when you have people with years and years of top flight, blue chip experience, degrees etc.)
Just to add another option for your research - not a recommendation, not advice etc: https://www.caunceohara.co.uk/
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