A lot of customers approach us during their policy cycle to increase their level of cover or add other products to their insurance. Usually it's because they've won a new project and the client has included an insurance clause in the contract.
There's one contract we keep seeing that's asking for a very high level of cover.
- £10,000,000 of professional indemnity
- £10,000,000 of public liability
- £10,000,000 of employers' liability
Not only is this going to make your insurance premium sky high, but for most freelancers it's an unnecessary level of cover.
So, how should you approach clients when they ask for this level of cover?
Negotiate Like A Boss
This is a boilerplate contract that the client gives to all contractors—whether they're large teams with multiple bodies or a one-person freelancer.
It's perfectly normal to negotiate the terms of a contract, so don't be afraid to discuss the conditions. In our experience, the client is usually open to negotiating the terms.
Consider asking if you can remove the request for employers' liability. If you're a freelancer with zero employees, there's no point in having this cover. You're not going to sue yourself and it could save you £50-£100.
Next, see if they're open to compromising the level of cover for professional indemnity and public liability.
£10,000,000 is on the high side for a one-person business. Most of our customers have £1,000,000 of cover, so see if they'll compromise on a limit of £1,000,000 or £2,000,000.
In all of the instances where we've had a customer approach us about this, there's only been one client that has stood their ground and not been open to negotiating. Others have been happy to compromise and amend the contract to better suit the freelancer.
Another clause often seen in the contract is that the freelancer should be insured by an insurer with an A.M. Best rating of at least A-. This is something you don't need to worry about, as the insurer With Jack works with is rated A (Excellent).