PI insurance for contractors is shorthand for professional indemnity, and for most contractors the practical question is not whether to have it but how to have the certificate in the agency's hands before the start date. Engagements are lost to paperwork more often than to price.
What the certificate has to show
The insured entity, usually your limited company, exactly as named in the contract. The cover type and the limit, matching or exceeding the contract minimum. The period, covering the engagement. And the insurer. Agencies check these against the contract, and a certificate naming an individual where the contract names a company is a common rejection.
Getting it before the start date
Annual cover bought in advance is the only reliable way. Cover arranged after an engagement is offered still works, but the certificate then sits on the critical path. Contractors who work continuously keep the policy running year round for this reason as much as for the claims made continuity.
When the contract asks for more than you hold
Raising a limit mid term is straightforward and usually cheap relative to the engagement. Do it before signing rather than promising to. Where a single client's requirement is far above the rest, raising the whole policy is generally cheaper than any alternative arrangement.
Public liability and employers liability alongside
Agency contracts almost always name all three. Employers liability is compulsory the moment anybody works for the company other than the director, which for a single person company is often nobody, but the contract may still require it. Read what is asked for rather than assuming the standard package covers it.
Questions people ask about pi insurance for contractors
What does the agency want on the certificate?
The insured entity exactly as contracted, the cover type, the limit matching the contract minimum, the period and the insurer.
Can I buy cover for one engagement?
Annual cover is the norm and is what keeps the claims made chain continuous. Per engagement cover leaves completed work exposed.
What if the contract asks for a higher limit?
Raise the policy before signing. It is usually inexpensive relative to the engagement and cannot be promised retrospectively.
Is employers liability needed for a one person company?
Not by statute if nobody other than the director works for it, but agency contracts frequently require it anyway.