IT Contractor Care Insurance
Contractors and Insurance – background
As an independent contractor, you owe an obligation to Recruit IT and our client to take reasonable due care in the services you provide. In other words, if you make a mistake or error in the work you are doing you can be legally liable for the loss that your client suffers as a result of the mistake or error.
When you are an employee of a company you do not have this risk, as you are a part of the organisation you are working for and subsequently covered under their professional indemnity insurance policy.
It is for this reason that independent contractors purchase liability insurance to protect them from the risk of causing a large loss to their client which they either couldn’t or wouldn’t want to pay for out of their own pocket.
Recruit IT Umbrella Insurance Cover
Recruit IT has been able to source contractor insurance to give better value and more cover at a competitive price. This insurance will provide cover of $5M Professional Indemnity cover and $10M Public Liability cover. The advantages of this cover include:
The insurance is calculated on a monthly basis so no annual up front charge is necessary and you only pay insurance when you are being paid. This means the insurance cost is fairer and easier to manage and can simply be deducted from your monthly invoice.
The annual cost for $5,000,000.00 Professional Indemnity and $10,000,000.00 Public Liability cover is $599 + GST. This would be deducted from your invoice payment at a rate of $49.92 + GST/month.
We confirm that whilst Recruit IT maintains this group insurance you will have cover for a claim after you’ve completed the work. This means that the work you complete while with Recruit IT is covered after the contract is finished eg: a claim is made 6 months after your contract is finished. The insurer will cover you for this occurrence.
What will the new policies entail?
Your risk will be covered by Lloyds London. A schedule from the insurer confirming the cover is in place will be provided if you choose to take this insurance cover with Recruit IT.
What does the policy cover?
Recruit IT has a group policy that it can extend to include contractors who contract through Recruit IT. The cover available to you will only cover the risk from the work you do with Recruit IT. If you require to cover previous work we can arrange this for you at an additional (discounted) cost.
|Professional Indemnity||General Liability|
|Limit – any one loss||$5,000,000||10,000,000|
|Limit in the aggregate||$15,000,000||Public Liability: each occurrence
Products Liability: in the aggregate
|Insurer||Lloyd’s of London||Lloyd’s of London|
Professional indemnity insurance – covers the cost to legally defend yourself, as well as pay for any settlement or compensation you may become liable to pay (as detailed within the policy) as a result of providing negligent professional services.
Public liability insurance – covers your legal liability as a result of causing property damage or personal injury.
The policy will cover IT related contracting work, including:
Business Analyst, CRM Systems, IT facilities management, IT hardware consultant, IT hardware sale & supply (excluding manufacturing), IT network architect, IT outsourcing consultant, IT programme manager, IT project management, IT security consultants (excluding penetration testing), IT software consultant, IT software development, IT software programmer, IT software sale, IT software tester, IT system analyst, IT system designer, IT training, Network communication consultants, PC/IT Network Support, Search engine optimisation, Telecommunication consultant, Website designer.
If you feel that the activities of your contracting work fall outside of any of these activities, please let Recruit IT know. We will liaise with the insurer to ascertain if cover is available.
To sign up for this insurance cover with Recruit IT please download and complete the Recruit IT Contractor Care Application Form below or contact Chrissy Miller on 027 444 2732 or firstname.lastname@example.org
Separate run-off cover: Optional discounted cover for work performed prior to Recruit IT
A professional indemnity policy operates on a ‘claims made’ basis, which is important to understand.
It means that the insurance policy provides cover for a period of time (usually for 12 months) in which a claim for compensation or loss is made. The ‘trigger’ for cover relates to the time a claim for compensation is made, NOT the time you did the act or provided the services which the claim relates to. A claim could relate to work you did last week, last month, last year or even 5 years ago. Therefore the policy needs to be in place when the claim is made, not the policy when the work was done.
If you have done contracting work in the past there is a possibility that a claim could be made against you from this work. Because only your work for Recruit IT is covered by the group Recruit IT policy you may decide you’d like to have insurance cover for your previous work.
Recruit IT has been able to arrange run-off cover at reduced rates for our contractors (for many of our contractors this will only be around $165 + GST). If you are interested in purchasing this run-off cover please contact Chrissy Miller on 027 444 2732 or email@example.com