Professional Indemnity (PI) Insurance FAQ
Professional Indemnity (PI) Insurance, Indemnity Insurance, Professional Liability Insurance for Contractors
FAQ's
- When does cover start?
- Is cover compulsory?
- I have short a short term contract - why do I need annual cover?
- How long does it take to arrange cover?
- Who provides the insurance and how can you be so competitive
- How can I pay for this insurance
- What about at the time of renewed?
- What happens if I have to make a claim under the insurance policy?
- Professional Indemnity: What is Retroactive Cover?
- What if I do not qualify for the scheme; can I still get cover?
1. When does cover commence?
Cover for all classes of insurance can be arranged at any time to suit your circumstances. This can commence at any time but cannot be backdated. However, please see below regarding Professional Indemnity Insurance Retroactive cover that we offer.
2. Is cover compulsory?
It is advisable, to consider all elements of insurance to protect you from a variety of risks within your market. You are, however, compelled by current legislation to have Employers' Liability Insurance. Our Employers Liability Policy includes automatic cover should you need to send a substitute to a customers premises should you not be able to attend for instance if you are on holiday or suffering from ill health.
In addition, often under contract, you are required to carry Professional Indemnity Insurance cover. From time to time you may also be required to have Public Liability cover.
Professional Indemnity (PI) insurance covers IT contractors as well as many other types of contractors and freelancers in other professions; scroll through to the quote and application engine for full list and here for sample prices.
3. I have short a short term contract - why do I need annual cover?
Professional Indemnity cover is traditionally underwritten on a "claims made" wording, which means cover must be in force at the time of a claim being submitted. If you had cover in force for the duration of your contract which then ceased upon completion and a claim from your customer is submitted 2 weeks later then cover would not be in place.
Annual cover ensures you have cover for all eventualities and even if you cease freelance contracting, we recommend you purchase run-off cover for several years to ensure you are not exposed to a claim relating to work carried out historically.
4. How long does it take to arrange cover?
The application process is on-line to provide a fast and efficient service with the ability to print out documentation immediately upon completion of the process.
5. Who provides the insurance and how can you be so competitive?
Insurance is arranged by a variety of Insurers and under binding agreements with Underwriting Syndicates at Lloyd's. It is for this reason and the fact that the application is processed on-line that this comprehensive cover can be provided so competitively. We provide one of the widest wordings available with the lowest excesses.
6. How can I pay for this insurance?
By debit or credit card through our secure portal without any surcharges.
7. What about at the time of renewed?
Caunce O'Hara will make contact in writing prior to expiry of the cover. Renewal will be processed when payment is received from or annually by direct debit should you have chosen this option.
8. What happens if I have to make a claim under the Insurance policy?
Please contact our dedicated Claims Department either by email at info@caunceohara.co.uk or by telephone on 0161 833 2100. In either case, to help us respond promptly, please quote the relevant insurance policy number and provide brief details of the nature of the claim.
9. Professional Indemnity: What is Retroactive Cover?
Retroactive cover applies solely to Professional Indemnity Insurance. Once this class of insurance is arranged, it will cover you for any future claims which may relate back to an occurrence which pre-dates the date on which the insurance policy commenced as far back as the date on which your business started, so long as you keep the policy in force with us.
For this type of insurance, cover can only be confirmed after receipt of a declaration, at inception or renewal, that you are not aware of any circumstances which could give rise to a claim.
10. What if I do not qualify for the scheme; can I still get cover?
Your internet application will be referred to our scheme underwriter for further consideration. If still considered to be unsuitable for the scheme, in some cases we may be able to offer terms from the open market.
If you have any further questions please contact Caunce O'Hara on 0161 833 2100.
You may also find the following pages, guides and case studies useful:
First time Contracting or Freelancing? - A summary of the alternatives along with pros and cons
Take home pay calculator - How much could you be taking home
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Limited or Umbrella? Can't decide? - We help you decide which is best
Take home pay case studies - Examples of contractors using a ltd co. & umbrella co.
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35
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