How much Professional Indemnity Insurance is adequate?

Professional Indemnity Insurance. The insurance which protects your business against claims for loss or damage made by a client or third party. The insurance which protects against claims if you make mistakes or are found to have been negligent in some or all of the services you provided. The insurance which will also cover legal costs.

PII - Is it a headache for you?

It’s something we are very familiar with as recruiters in the Health and Safety industry. Especially since we place people into contract roles.

Luckily the vast majority of umbrella companies cover professional indemnity at no extra cost to the contractor but it is prudent to check if this is the case. However, as a contractor operating as your own limited company is professional indemnity something you would need to worry about?

 

The answer is yes. In an age where society is increasingly compensation minded and the risk for being sued for professional negligence increases, it’s not surprising that people want to protect themselves if they are blamed when and if something goes wrong.

That said, there have been a number of instances when we’ve spoken to people who are unaware of the reasons as to why they would need professional indemnity and furthermore, instances where people have refused to take it out, believing it to be an unnecessary cost.

 

Well let me spell it out for you: if something goes wrong and as a consultant there is potential for you to be held accountable, without professional indemnity insurance you face the possibility of being sued and having to pay legal costs and legal compensation from the lawsuit yourself. What’s more, these legal costs have the potential to be high. Very high.

Unfortunately, when it comes to professional indemnity and deciding how much you would need as a contractor, there is not a one-size-fits all answer. That said, since we specialise in placing contractors in health and safety roles, our regulatory requirements stipulate that our contractors must be covered by a minimum of £500,000 professional indemnity. But is this amount too much, too little or just about right? What would you regard as adequate cover?

At HSE Recruitment we work with contractors in both high and low risk roles. For those contractors working in high risk roles for companies such as an offshore company or construction firm there’s obviously a greater potential for something to go wrong. Likewise, for contractors working in an office setting, the level of risk is greatly reduced.  I spoke to a couple of contractors in both high risk and low risk roles to determine what they considered adequate cover and as it turns out, most of the contractors I spoke to felt that £250,000 would be reasonable cover. But is this enough if you’re working in a setting where there’s a greater likelihood of health and safety blunders? Similarly, is it the size or turnover of the company you will be working for as a contractor that determines the amount of insurance you will need? Or is it simply the level of risk involved in the services you are providing?

I guess that many contractors may take a sceptical approach; are minor claims even worth making when it comes to professional indemnity? What’s more, if the main source of advice about insurance is coming from the people who sell these policies, is it really necessary to buy as high a level as possible?

So, ask yourself this....

Well, perhaps think of it like this: chances are you will never have to use your Professional Indemnity Insurance and ultimately it’s up to you as the contractor whether you choose to take it out. However, bear in mind that most agencies, us included, won’t work with people who don’t.

The HSE Recruitment Network is the UK’s leading Health, Safety and Environmental recruitment agency.

Where should responsibility lie?

Last week saw the Dean from St Paul’s Cathedral in London resign, claiming that his position has become untenable after weeks of protests outside the cathedral.

Graeme Knowles, ex Dean of St Paul's whose position became untenable

His departure, due to the protests by anti-capitalists, meant that the Dean could not continue as he was in this highly prestigious role. 

 

This had us here at The HSE Recruitment Network thinking about the implications of deciding who is ultimately accountable for situations beyond the control of a particular individual.

Strangely enough, the men in our office have managed to link this back to football (yes, shocking isn’t it). Blackburn Rovers fans are currently demanding Manager Steve Kean should be sacked after a recent run of four straight losses.

Steve Kean, the Manager at Blackburn Rovers who fans want out!

But is that really Kean’s fault? Surely the players aren’t blameless? If we are to believe that the person at the top of any organisation is ultimately responsible for the downfalls of that organisation does that mean that these people should be forced into resigning or even fired?

People in senior Health and Safety positions have a lot of responsibility on their heads. The Health and Safety Executive states that under the law, employers are responsible for health and safety management and therefore, it is ultimately the responsibility of the employer to protect their employees.

However, with regards to Health and Safety, is this an impossible task? Health and Safety Manager’s implement health and safety measures and proposals and when things go wrong the blame will fall on them. But is it hard for H&S professionals to check that everybody is adhering to certain rules and regulations? Is it difficult to make sure people in organisations or businesses are following Health and Safety guidelines that have been so carefully laid out? Furthermore, could it be suggested that more blame may also be placed on individuals who don’t take note of general health and safety guidance?

This week has seen Michael Jackson’s doctor being found guilty of involuntary manslaughter.

Conrad Murray, Michael Jackson's lawyer who was found guilty of involuntary manslaughter this week

Do you think that the blame should have been placed solely on Murray for dispensing the drugs to him? Or are there other people who should equally shoulder some of the blame such as his entourage or family?

A terrible accident at a meat processing company resulted in the position of Health and Safety manager becoming untenable. A cleaning team leader was very badly injured as she was inspecting a blender used to mix four tonnes of meat. Tragically she died from serious head injuries when a flap closed with substantial force.

The Health and Safety Executive investigated and found examples of insufficient training and supervision. You can read the full article here http://www.hse.gov.uk/press/2009/coise2809.htm.

As is the case with all Health and Safety professionals in senior positions, they are ultimately responsible for all aspects of health and safety. As such, when accidents such as these happen their positions as a senior authority are usually unsustainable.

Do you believe the person at the top of the organisation is ultimately responsible for health and safety downfalls? Where do you think responsibility should lie?

The HSE Recruitment Network is the UK’s leading Health, Safety and Environmental recruitment agency.

A Recruiters View: How Health and Safety professionals can develop in the renewable energy market

The renewable energy sector, being a new and developing one has a massive potential for Health and Safety professionals. Looking at just wind farm projects, the build of most of these is moving into the third stage but even then HSE professionals will be needed to maintain standards of operational wind farms.

From a recruitment point of view, companies seem to be taking on contractors for build stages and then permanent employees for operational use as they can spread one person over a number of sites once the construction issues are no longer there.

It is very difficult to get into a renewable market currently, but depending on what you are looking for there are ways to make yourself more marketable.

Transferable skills are key, so you ideally need to be working in a high risk environment. Also, depending on what stage of renewable projects you are trying to get into, it might also be preferable to have civils, working at height or offshore oil and gas experience.

Offshore wind farms

Having offshore experience alone is not always enough. For example, companies working at turbine stage will need you to have good working at height experience. Therefore we would recommend adding this to your skill set in your current role if possible, as well as attaining a working at height/rescue at height certificate.

Having a BOSIET (Basic Offshore Safety Induction and Emergency Training Certificate) alone won’t help, you need to have had offshore experience, so try and convince your current company to let you do offshore visits and expand your role. 

Thinking outside the box

Try and think outside the box

Whenever candidates call us to discuss how they can get into a renewable energy sector, they seem to focus their thoughts on offshore windfarms. People seem to forget about the onshore renewable projects that are just as big, i.e. onshore wind farms, biomass, waste from energy.

The key for this is to show off your marketable skills. Unfortunately recruiters and clients tend to be a little short-sighted and will only look at the obvious comparisons. Try and enhance transferable skills on your CV in simple terms i.e. “my civils experience is a huge advantage to me as it means I am comfortable with a variety of industries. I would have no problems working on tunnelling/piling for projects other than the usual construction roles I have looked at”.

Put in some hard work and hopefully your efforts will pay off!

When you have been job searching for a while we realise it is tempting to become lazy in your efforts. Always look at the job spec and company (if you have access to company profile) and think about what they need specifically. Sending out one CV for every role isn’t the best idea, especially if you are looking at getting into renewable energy in a variety of sectors. For EVERY role, tailor your CV. This does not need to mean adding huge chunks of text and making each CV dramatically different to the last, but should involve changing the odd sentence here and there to emphasise your skills. This is not about exaggerating a small part of your role that you think is relevant but about showing your skills to their best advantage.

Networking

Listen to Chris Tarrant...it's not WHAT you know but WHO you know!

Never underestimate the importance of who you know. Building a solid reputation for yourself in your sector, as well as being able to have excellent references to hand, will make you stand out from a crowd. Moreover, networking, whether this is via linkedin or in person at events, will let people be aware that you are looking for a new challenge.

If you require any further advice please feel free to contact one of our consultants here at The HSE Recruitment Network.

The HSE Recruitment Network is the UK’s leading Health, Safety and Environmental recruitment agency.

An Overview of AWR for Contractors

If you’re not already aware, the Agency Worker Regulations (hereafter AWR) are new entitlements which came into practice on  the 1^st of October. These regulations provide agency workers with the same basic working and employment conditions of a comparable permanent employee after a qualifying period of 12 weeksi.e. as if they have been recruited directly.

Confused about the AWR?

They stipulate, that from day one agency workers have the right to all the same facilities as a permanent employee and have access to all job vacancies that the company has available. After 12 weeks agency workers have the right to equal treatment relating to pay and other basic working conditions. As such, these regulations will stop lower earners being exploited.

At the HSE Recruitment Network we place a number of people in various professional contract Health and Safety positions. As a contractor you receive better tax benefits which include paying a different level of tax, plus you earn more money as you’re being paid as a specialist in your field at consultancy rates. However, on the flip side there is no job stability and once a project finishes it usually means you’re contract has finished.

As a rough guide we’ve laid out details on what the AWR means and why, as a professional day rate contractor, they shouldn’t apply to you.

How will the AWR affect me? What are my options?

As Dan Lovett-Horn from ICS Umbrella states, “Contracting is a huge driver for the economy, especially in the current climate. We believe it is vital that AWR legislation comes into effect with the minimum disruption for our clients and partners, and we will play a leading role in ensuring this happens”.

When the new regulations come in to effect, as a contractor you have a number of options. Firstly, setting up your own limited company means you are a business in your own right and are self employed. As such, the regulations will not apply to you and so the clearest cut option, it would seem, would be to set up your own limited company.

Alternatively, if you are employed by an umbrella company you can opt to go down the Swedish Derogation route. This is something you can ask your umbrella company about and they will be able to provide you with information about whether this is available to you.

In short, if you opt for Swedish Derogation the Agency Worker Regulations will not apply to you. Your umbrella company must pay you a minimum amount of at least 50% of your basic pay for a period of no less than 4 weeks. Thus, you will receive payments in between assignmentsif there in no alternative available work for you. Swedish Derogation might be a good option for you if you have never contracted before or for those of you who are on a lower wage.  

Help is at hand!

However, if the contractor is getting paid more than his permanent counterpart then their contract will be non derogation. In other words, an employee will only be considered for Swedish Derogation if they’re getting paid less than their comparator .

Since we have a number of clients who employ contractors we’d like to mention that as a client, you need to be aware that you’re covered in respect of these regulations as long as you provide an agency such as ourselves with comparative information on entry level permanent positions i.e. salary and benefits. So that we can ensure that contractors that we are supplying are not being exploited.

In summary, it’s unlikely, as a professional contractor that the AWR will affect you, however, it might be prudent to be aware of the regulations as either contractor or client to ensure you are getting the same deal as someone in comparative permanent employment.

If you require any further information on AWR or how they affect you, please visit the Interim and Contract Solutions page of our website.

The HSE Recruitment Network is the UK’s leading Health, Safety and Environmental recruitment agency.

Laura’s Great Wall of China Treck!

Here at the HSE Recruitment Network we always like to challenge ourselves and what bigger challenge than walking the Great Wall of China!!! Laura Cleaver, HSE’s recently promoted recruitment consultant is taking this challenge in her stride (get it? Stride) and raising money for a great cause at the same time.

Laura Cleaver, Recruitment Consultant

Teaming up with her best friend Zoe, the pair will be doing a 5 day trek along the Great Wall of China in October 2011 to raise money for Acorn’s Children’s Hospice. Acorn’s are a hospice for children with life limiting conditions and their families. It’s a charity which is very close to their hearts. As Laura explains “Zoe’s close friend had a little girl born with severe liver problems. Devastatingly she died when she was five years old and Acorn’s were the charity who looked after her during her short life, helping the family with respite care and looking after her towards the end when she was very seriously ill. They also helped to arrange the funeral, taking the burden of organising it off her family at such a distressing time. The charity still gives her family counselling and support a year on”.

To say thank you for their help and support Laura and Zoe have decided to walk the Great Wall and raise money for Acorn’s to give something back. It’s no easy task. Firstly, the pair need to raise £2985 each. Laura explains that they have done this in a number of ways, “We held a charity pub quiz in Mosley (a local area) which was a lot of fun. We asked friends and family to sponsor us, we had dress down days at work where colleagues gave money in return for being able to wear casual clothes and Stephen Brandsma, a colleague of ours, was sponsored to grow a handlebar moustache. We also went Charity collecting on Broad Street in Birmingham and in the Arcadian Centre which we hope to do again”. So far, Laura has raised £2386 and Zoe has raised £2470 so they’re not far off!

Stevey B's lovely handlebar moustache

It’s not just raising the money that has been a struggle. Laura says “I’ve stopped drinking for the next few weeks which is proving to be quite a challenge in itself! We’re trying to train hard but life just keeps getting in the way. There’s always something else to do rather than train but I’m determined to work as hard as I can so it’s not too daunting once we arrive”. Aside from not drinking the girls are walking for two hours every Tuesday and Thursday. They have also been doing an hour and a half of extra exercise each week including stepping on the Wii fit, going to step aerobics, cycling, playing tennis and going on walks around Canon Hill Park in Birmingham to help improve their stamina. Over the weekend they did a six hour walk over the Licky Hills and they will endeavour to walk for 8 hours once or twice a week over the coming weeks. 

Laura has banned alcohol...for the time being!

The trek itself lasts 5 days and they will be joined with approximately 15 other people, all taking on the challenge for a number of different charities. On a typical day they will wake at six in the morning and enjoy a hearty breakfast at their accommodation (tents or lodges) before heading to the starting point for their trek at 8am. The walking will begin at 8:30am and they’ll be walking up to ten hours each day up and down hundreds and hundreds of steps – a challenge not for the faint hearted!

So, with the trek start date just over four weeks away is there anything Laura is nervous about? “The Steps”, she says, without even thinking about it, “I think I’ve built up my stamina so when I’m walking over flat ground I should be ok – we’ve done a lot of stretching and have had a lot of practice. I’m just worried about the steps because I walked the six flights of stairs in my apartment block the other day and almost died!”. We’re sure she’ll be ok with the steps, it’s her nerves about the lack of toilets that we can’t help laugh about. “We’ve been told the toilets will be the hole in the ground variety and it’ll be a case of crouching in bushes during the day”. Apparently the girls are looking into buying She Wees for when nature strikes! (If you don’t know what they are Google them!). 

Will this be Laura's toilet?

It seems that it’s peeing in bushes and steps that Laura is most nervous about, but she also explains that she’s worried about crying in front of people she doesn’t know and rather worryingly, her sugar levels. “Being a diabetic means the walk will be an even bigger challenge for me. I have to buy cold packs to put my insulin shots in as they don’t work if they get too hot. I also need to be really careful monitoring my sugars”.

When asked what she’s looking forward to most about the trek, straightaway Laura answers, “finishing”. But it’s not all blood, sweat, tears and She Wees. On the last night Laura and Zoe will be taken to a famous duck restaurant in Beijing and treated to a celebratory dinner which they’re both really looking forward to. “I can’t wait to finish. The sense of achievement will be amazing and then we’ll celebrate at the restaurant in Beijing before staying in a hostel on the 16^th when everyone else flys home before taking an overnight sleeper train to Xian the next evening  where we  will go to see the Terracota Army”.

The Great Wall of China!

Sounds fantastic, aside from being teetotal for the next few weeks and maybe the whole walking part! Everyone here at  The HSE Recruitment Network wish her the best of luck but can’t help being very envious!

Laura with her collection bucket

If you would like to sponsor Laura and help the Acorn’s Children’s Hospice please visit www.justgiving.com/laura_cleaver0

The HSE Recruitment Network is the UK’s leading Health, Safety and Environmental recruitment agency.