Contractor Insurances – What Insurances do I need as a Contractor?

By
Contracting Made Easy
Published: May 5, 2010Posted in: Contractor Finances, InsurancesTags: , , , , , ,

Whilst it’s true that claims by clients against contractors are relatively rare, when they do happen they can be Nasty with a capital N. As a contractor, you will be held financially responsible by clients for any errors that you make. As none of us are entirely foolproof, to venture into the contracting jungle without the protective cover of insurance is to court potential disaster. But just what insurance should you consider?

The contractor insurances you really should not run your business without having are professional indemnity insurance and public liability insurance. The first protects against the kind of claim that can ruin your reputation and destroy your finances. Even the highest-flying companies can find themselves embroiled in disputes. PI insurance financially protects your company and defends your reputation. Public liability protects you if a client or visitor is accidentally injured whilst visiting your premises, and covers you if you accidentally damage third party property whilst conducting your business. If you have employees, you also ought to consider employer’s liability insurance in case any of them get injured at work.

Other insurances to seriously consider include tax and Vat investigation insurance, which covers you both to defend yourself and pursue your rights during disputes such as tax, VAT, PAYE and IR35 investigations from the Inland Revenue, non-payment by creditors, employment disputes, data protection and legal defence in the event of civil and criminal proceedings against you. You will also be glad of income protection insurance and private health insurance – illness and accident can interrupt anyone’s business plan, and it is as well to protect yourself from the worst effects of these contingencies and ensure the swiftest medical treatment.