Contracting Advice
Discussion
I'm hoping some one can help please?
My Umbrella Company are pushing me to buy the minimum level of £500,000.00 Professional Indemnity Insurance, through them, saying my Agency demand it.
My Agency say that this is not applicable to me at present, as I'm already under contract with them, and my renewal has gone through with them without this being flagged to as an immediate need, but they do now require this of the Contractors that they use.
The Agency guy and I have discussed several options
A- I buy the £500 pa policy and claim it back as expenses (perfectly legal and expected)
B- I transfer to another Umbrella Company who provide this level of cover as part of their service (such as OrangeGenie or Parasol).
C- I start my own company (when I would then need to do A), where there would be other benefits to me as well.
Background - as of September'08 I am a discharged Bankrupt
What do the experts here think please?
My Umbrella Company are pushing me to buy the minimum level of £500,000.00 Professional Indemnity Insurance, through them, saying my Agency demand it.
My Agency say that this is not applicable to me at present, as I'm already under contract with them, and my renewal has gone through with them without this being flagged to as an immediate need, but they do now require this of the Contractors that they use.
The Agency guy and I have discussed several options
A- I buy the £500 pa policy and claim it back as expenses (perfectly legal and expected)
B- I transfer to another Umbrella Company who provide this level of cover as part of their service (such as OrangeGenie or Parasol).
C- I start my own company (when I would then need to do A), where there would be other benefits to me as well.
Background - as of September'08 I am a discharged Bankrupt
What do the experts here think please?
To put it into perspective I paid about £600 for £1M of cover last year, which also included public liability insurance and a seperate policy covering business equipment within the home, through Caunce O'Hara. Good job too as my current contract requires £1M minimum.
Was it only the bankrupcty restrictions which prevented you from incorporating in the first place?
Was it only the bankrupcty restrictions which prevented you from incorporating in the first place?
theboss said:
To put it into perspective I paid about £600 for £1M of cover last year, which also included public liability insurance and a seperate policy covering business equipment within the home, through Caunce O'Hara. Good job too as my current contract requires £1M minimum.
Was it only the bankrupcty restrictions which prevented you from incorporating in the first place?
the Agency have said the insurance that is now required is two forms;Was it only the bankrupcty restrictions which prevented you from incorporating in the first place?
A. Ltd liability insurance
B. Proffesional indemnity insurance
As a package usual cost is around £500. Depending on how hard you shop around you could prob get this figure down a bit.
I hadn't incorporated initially because it was only meant to be a temporary thing whilst looking for a permie role... 5 years later...
So all the advice is to set up a ltd and get your own insurance.
What else do you want to hear?
Ltd Liability? Do you mean public liability?
The levels of insurance you need are typically defined by the client - it is usual to require a particular level of public liability as part of the contract or T&C.
PI - professional Liability is there so that if/when you screw up the insurance pays to sort it out. I can see that that may be required because as an employee of the brolly, then the contracts are presumably end client -> agency -> brolly -> you and that would be mirrored by the flow of litigation.
I still think that it is unreasonable for the brolly to heap these charges on you - they could easily get a blanket policy far cheaper.
What else do you want to hear?
Ltd Liability? Do you mean public liability?
The levels of insurance you need are typically defined by the client - it is usual to require a particular level of public liability as part of the contract or T&C.
PI - professional Liability is there so that if/when you screw up the insurance pays to sort it out. I can see that that may be required because as an employee of the brolly, then the contracts are presumably end client -> agency -> brolly -> you and that would be mirrored by the flow of litigation.
I still think that it is unreasonable for the brolly to heap these charges on you - they could easily get a blanket policy far cheaper.
Certainly Parasol provide this free of charge who I have been using for the last 8 months.
However, I've now decided to set-up as a Limited company through an accountant.
Options are:
Move to OrangeGenie or Parasol
Set-up as a limited company.
Early days to be able to recommend my accountant, however, they did come recommended.
However, I've now decided to set-up as a Limited company through an accountant.
Options are:
Move to OrangeGenie or Parasol
Set-up as a limited company.
Early days to be able to recommend my accountant, however, they did come recommended.
Who is your current Umbrella (by PM might be best). I can't believe they don't have PI of much more than £500k.
£500 is quite expensive for £500k PI for a contractor (depending upon what you do - try this lot instead: http://www.dallaskirkland.com/pc.html)
I would suggest you go with a different Brolly at the very least as one that doesn't carry £500k of PI is probably cutting costs everywhere else as well.
Are you IR35 caught? If not (or even if you are) then running your own Ltd is going to give you a greater net profit. Being a discharged bankrupt should not be a problem (undischarged would be different).
PS. What is Ltd Liability Insurance exactly?
PPS. Don't buy anything from your agency or someone they recommend. Do your own research.
£500 is quite expensive for £500k PI for a contractor (depending upon what you do - try this lot instead: http://www.dallaskirkland.com/pc.html)
I would suggest you go with a different Brolly at the very least as one that doesn't carry £500k of PI is probably cutting costs everywhere else as well.
Are you IR35 caught? If not (or even if you are) then running your own Ltd is going to give you a greater net profit. Being a discharged bankrupt should not be a problem (undischarged would be different).
PS. What is Ltd Liability Insurance exactly?
PPS. Don't buy anything from your agency or someone they recommend. Do your own research.
UpTheIron said:
Who is your current Umbrella (by PM might be best). I can't believe they don't have PI of much more than £500k.
£500 is quite expensive for £500k PI for a contractor (depending upon what you do - try this lot instead: http://www.dallaskirkland.com/pc.html)
I would suggest you go with a different Brolly at the very least as one that doesn't carry £500k of PI is probably cutting costs everywhere else as well.
Are you IR35 caught? If not (or even if you are) then running your own Ltd is going to give you a greater net profit. Being a discharged bankrupt should not be a problem (undischarged would be different).
PS. What is Ltd Liability Insurance exactly?
PPS. Don't buy anything from your agency or someone they recommend. Do your own research.
Thanks£500 is quite expensive for £500k PI for a contractor (depending upon what you do - try this lot instead: http://www.dallaskirkland.com/pc.html)
I would suggest you go with a different Brolly at the very least as one that doesn't carry £500k of PI is probably cutting costs everywhere else as well.
Are you IR35 caught? If not (or even if you are) then running your own Ltd is going to give you a greater net profit. Being a discharged bankrupt should not be a problem (undischarged would be different).
PS. What is Ltd Liability Insurance exactly?
PPS. Don't buy anything from your agency or someone they recommend. Do your own research.
I'm with a contractor umbrella
Who I have had no problems with up until now... But they have just dumped this on me - which I'm disgusted by!
I'm IR35 compliant 
I'd never buy anything from them, they didn't even sort my renewal out!
You could get a quote from these guys...
http://www.caunceohara.co.uk/
I've been using them for the last 3 or 4 years.
http://www.caunceohara.co.uk/
I've been using them for the last 3 or 4 years.
ali_kat said:
I'm with a contractor umbrella
I'm surprised...I thought they were one of the good guys...if you want to stay under a Brolly then www.goumbrella.co.uk are good (from my personal experience). PI included.dern said:
You could get a quote from these guys...
http://www.caunceohara.co.uk/
I've been using them for the last 3 or 4 years.
Agree, they are one of the better, cheaper PI providers, but surely the idea of a Brolly is you don't need to sort this out yourself?http://www.caunceohara.co.uk/
I've been using them for the last 3 or 4 years.
UpTheIron said:
ali_kat said:
I'm with a contractor umbrella
I'm surprised...I thought they were one of the good guys...if you want to stay under a Brolly then www.goumbrella.co.uk are good (from my personal experience). PI included.
UpTheIron said:
dern said:
You could get a quote from these guys...
http://www.caunceohara.co.uk/
I've been using them for the last 3 or 4 years.
Agree, they are one of the better, cheaper PI providers, but surely the idea of a Brolly is you don't need to sort this out yourself?http://www.caunceohara.co.uk/
I've been using them for the last 3 or 4 years.
exactly, and as soon as they decide to chase me again, I'll leave it.Then I'll just move to another umbrella
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