Hi I'm sorry for the long email, but I need to give you the full picture of my situation. I'm running a small Limited company and I have been trading for about 1.5 years now, I work in a very specialized area of building surveying called "Rights of light" where I create the 3D analysis models and then testing the impact of proposed developments to the surrounding buildings for rights to light, daylight and sunlight. I then report back the analysis results to my clients (building surveyors) who then advise their clients (the affected property owners or building developers) based on our analysis about how their proposed scheme affects the surrounding site. Prior to setting up my own business I worked for one of the top companies in this industry for about 18 years, where I was an associate partner. I'm fairly well know in the industry and I have worked along side most of my clients in my previous employment, where we worked together so I know them all fairly well. I have verbal agreements in place with them that any work I carry out on behalf of their companies is covered by their companies IP insurance cover as it very expensive, but after speaking to my accountant he told me that this is not legally binding and as I am not an employee of these companies but a separate company and so need my own PI insurance. Please can you advise me if this is the case or I can draw up some sort of legal agreement with my clients where the IP insurance liability is put back on them? Thanks Graham XXX
If I can legally have this sort of agreement in place regarding IP insurance as a sub contractor / separate company then yes that would be great.
That's fine, at this stage I just need to know if I can legally have this sort of agreement with my clients?
If it's legal, I would great appreciate some referrals.
I don't currently have a website, all my work comes through my contacts in the industry.
My limited company is full registered and I'm in the process of also getting VAT registered.
I'm a one man band at the moment and I work for about 4 different companies.
I don't give any advice, I create the 3D models, run the analysis and then report back the rights to light surveyor, they inform the client what the issues around the site are and work out compensation figures etc. I just do the technical stuff.
I just need to know if I can legally work under another companies IP insurance and if so, I would only then need some help with drafting a legal agreement which I would request all of my clients to sign, which one of your referrals could help me with.
You are asking about IP insurance which is Intellectual Property. I think you mean PI insurance which is Professional Indemnity.
There is only one way of getting a category answer to this and that’s not the letter from the person that you doing the work for but it’s from their insurance company and without that, it doesn’t matter what contract you have in place, you cannot guarantee that you have professional indemnity insurance.
Is that what you are asking?
Thanks for that, nearly there, but could I ask if I had a letter from one of my clients stating that I was covered under their PI insurance and there was a claim against their company for some work I had carried out what would be the outcome?
The party with the claim would sue you. The insurer would not pay (if they didn’t want to cover you). You would then sue the company that you did work for on the basis they said you were insured and you relied on that.
Very complicated and I would not suggest that you worked with anything less than confirmation directly from the insurer that you are covered
Thanks for your help, I think I will need to speak to my clients or get my own company PI insurance that cost thousands !
Good luck and all the best
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