“Stay up to date with all the latest UK Contractor Industry news.”
Do I need insurance?
Yes, this is a necessity for the following reasons:
You have legal obligations to your clients, ultimately if you make an error, it is your responsibility, whilst rare, in financial terms, this can be devastating.
Which type of insurance do I need?
Call us and we can guide you through your requirements, after all you don’t want unnecessary and expensive cover. Below are some of the types of insurance you may require.
Professional indemnity insurance
This covers you for professional negligence, many clients require you to have professional liability insurance.
IT consultants – Breach of contract claims for incomplete software features and delivery over run
Management Consultants – Incorrect advice can result in unexpected financial loss
Accountants – Protect against miss calculation and poor advice.
Doctors – UK based doctors should consult a medical defence organisation about the sort of cover they require, all other medical professionals should hold medical professional indemnity cover.
The majority of policies cover claims up to £1M, but this can be increased to £5M.
Public liability insurance
This is not always a must, but most businesses expect this and encourage it, while for others this is statutory. This will protect from claims from third parties such as, colleagues or members of the public who have been injured or suffered some loss and in addition covers your individual clients’ property should you accidentally damage something whilst in their office. Most policies usually cover you up to £1M.
Personal accident cover
As a contractor you are on your own should you become ill or incapacitated, short or long term illness can hit your finances hard so it’s worth ensuring you are covered If you get injured or are sick.
Plan for the unexpected and be prepared, most policies will give you a weekly income should the worst happen.
Other types of insurance
Subcontractor insurance or employer’s liability insurance
This is a legal requirement if you have at least one employee, as a sole trader this can also help reaffirm your IR35 credentials. Your limited company will pass one of the key tests if can send a replacement employee to work for your client, standard cover would be in the region of £5M.
Jury service insurance
Not often thought about but court cases can be lengthy and you have a legal obligation to carry out jury service when called upon. Daily expenses from the court rarely cover your daily rate, so cover is available.
Fear not, some insurers will provide contractors with All RISK insurance cover, with several different types of insurance covered on one policy.
Confused? Well don’t be, contact Prosperity Pay – we work with a select group of insurance providers who are handpicked and proven to deliver the right product for you. They will ensure you are protected should the worst happen.