The Effects of PI Insurance

If you are a contractor it is important to protect yourself by taking out good PI Insurance. This type of policy is considered essential to contractors and is very affordable for the cover it provides. If a client is dissatisfied and makes a claim against a contractor, it has the potential of financially costing them very dearly. If during a contract, a contractor either accidentally breached their duty of care, or unintentionally infringed someone else's copyright, or was dishonest or lost important data or documents, a dispute with their client can arise. This Insurance will cover the cost of damages and for fixing mistakes, as well as covering the cost of legal fees. It is one of the most important insurance policies to have in place as a contractor.

Technically speaking, PI Insurance will protect a contractor against the cost of defending claims where it is alleged that a client has suffered financial loss as a result of their contractor's error, omission or negligence. Basically, the cover acts as a safety net for the contractor, covering the costs and troubles of a potential claim made against them as a policy holder created as a result of any mistakes that they may have made within the workplace. This is deemed to be an essential policy for contractors as contracting can be regarded as a high risk occupation, leading to increasing possibilities for professional error. As well as providing obvious protection, this type of insurance policy is commonly a contractual requirement on most contracts, therefore an essential policy to be purchased. It basically protects a contractor's professional indemnity, giving a freelancer not only great and vital protection, but also peace of mind in such a stressful and sometimes pressurizing line of work.

As well as obviously protecting a contractor's professional indemnity, PI insurance also looks positive in the eyes of the HMRC with regard to contracts and IR35 status. This is one of the huge benefits that the insurance cover delivers as IR35 can be devastating to contractors who fall under the legislation. In this case taking out the policy acts as a means to bolster a contractor's position as a limited company, therefore aiding their viewpoint from the HMRC.

PI Insurance is a form of contractor cover that should never be overlooked. No matter what professional field a contractor works in, claims of negligence can be made against them, making the need for a PI policy adamant. Insurance is important is all forms of business, and for high risk professions such as contracting, a policy such as PI insurance is necessary in order to provide complete peace of mind.

Contractors receive high earnings for their specialized lines of work, but their self-employed status leaves them potentially vulnerable to claims and assertions. These possible claims against a contractor can be very costly and often devastating to their professional reputation. PI Insurance is a contractor's lifeline in these cases, as it covers all expenses and efforts during a claim as well as taking the burden of any troubles and costs along the way.

Chris Carvill works for QDOS, a provider of PI Insurance and IR35 Insurance. To see how the IR35 Rules may affect you see the QDOS website.

The Benefits of Getting Your Mortgage Through a Broker

A large mortgage is probably the biggest financial commitment you will ever make. If you are looking for a large mortgage it is important to get the most competitive rate and mortgage that suits your goals and requirements.

It's no surprise that borrowers are turning to professionally qualified intermediaries for advice on their borrowing requirements. If you are looking for a high value mortgage it makes sense to speak to an expert rather than applying online or by telephone where you're unlikely to benefit from independent, bespoke advice.

Technology firm Avelo have released data that shows that brokers are responsible for arranging six out of ten mortgages in the UK as opposed to the one in five that are arranged through a lender or branch network. Using a broker has many benefits and it is proven that they are most likely to succeed in getting the application to offer and complete. Avelo found that 75 per cent of all mortgage applications arranged through an intermediary went to offer. And, even more impressively, 85 per cent of mortgages offered via a broker went through to completion.

The research from Avelo also found that 27% of bank mortgages and less than one fifth (15 per cent) of mortgages arranged by mutuals are currently sold through their branch networks.

The research also found that there was a clear difference between banks and building societies as to where their mortgages come from. Mutuals were found to lean more heavily on the intermediary market with three quarters of their mortgages being arranged via a broker. In contrast, just 35 per cent of bank mortgages were arranged through a national or London mortgage advisor.

Further benefits to using a broker is the swiftness with which things get done. On average, just under one fifth (18 per cent) of mortgage offers were produced within five days, with banks higher at nearly one third (30 per cent) and mutuals lower, at just over one in 10 (12 per cent). Around three quarters of mortgage offers (73 per cent) were issued within 14 days.

Time to offer is seen by lenders, applicants and intermediaries as the key measure of efficiency and customer service. It will be extremely interesting to see what changes are put in place over the next 12 months and the impact these have on mortgage efficiency.

Not only will the offer itself be provided swiftly, but dealing with experts means that you will know pretty promptly what is and isn't possible and they know who to go to for what product. The relationship they have built up over time with lenders ensures that you get the best possible deal that perhaps another broker/individual would not be offered. Time and efficiency is key to high net worths' who are usually cash rich and time poor.

As well as providing bespoke large mortgage advice, an intermediary can also deal with the paperwork involved in the process. If you want to take the hassle out of applying for a mortgage, you should certainly consider speaking to a broker.