As a contractor we are sure you know there are a few extra things you need to think compared to being in permanent employment, one of these things is insurance.
Dependent upon what industry sector you are in, and the level of cover your contract requires you have you may need different types of insurance. Here are a few examples of the different types of contractor insurance you may need.
- Professional Indemnity Insurance
- Public Liability Insurance
- Office Insurance
- Personal Accident Insurance
- Cyber and Data Risks Insurance
- Commercial Legal Protection
Insurance is very important when it comes to contracting as anyone who works for themselves could be at risk when working for clients, if any mistakes are made. It is a vital part of working for yourself as you are ultimately responsible for anything that happens, whether you are a director of a Limited Company, a freelancer or the owner of a small business. Having the right insurance for your situation and contract provides you with:
Protection for your clients
If a mistake is made where either you or someone who works for you makes a mistake and it ends up either costing the client money or losing them money, then Professional Indemnity Insurance would come into play.
This type of insurance will cover the claims brought against you and your Limited Company and it also includes compensation and legal costs. For some industries, this is a mandatory requirement before any work is to take place.
Protection for yourself & your Limited Company
There are two types of limited liability insurance: public and employers. This type of insurance is a legal requirement for most businesses with employee’s in the UK, and it covers a wide range, from:
- Protection when dealing with the public
- Protection when clients visit your office (if required)
- Protection when you or an employee visit a business premises
Although, even if you do not carry out any of the above, you may still need public liability insurance to cover yourself and your Limited Company if a client’s property is damaged.
As a director of a Limited Company, the three main insurances which should cover you against any negligence in a variety of circumstances are; Professional Indemnity Insurance, Public Liability and Employers Liability insurance. All of these insurances can be bought from our partner Hiscox.
Hiscox offers a wide range of business insurances that are flexible to your needs as a contractor. They are a worldwide specialist insurer for contractors and small businesses. Below you can find an illustrated guide to how to decide what insurance is right for your business.