It goes without saying that few of us plan to have accidents. But as contingency is possibly the most universal theme in all human affairs, it’s perhaps a little more surprising to learn that so many independents in the world of freelance contracting are tempted to cast their fate to the wind and ignore the crucial importance of good public liability insurance. Of all the contractor insurances out there, this is one of the most pivotal.
A client comes to your office and slips on an unnoticed spill of coffee on a hard surface. That few square centimetres of forgotten Nescafe could cost you your business, if the client ends up with a significant injury. Alternatively, if you visit a client’s premises as a potential contractor and inadvertently damage equipment there, you could similarly be looking at eye watering expenses. Moral of the story? Be smart: don’t skimp on public liability insurance. With a good policy, you’ll be covered for both eventualities in all their infinite possibilities.
The amount of cover you’ll need will depend on the type of work you’re doing (the average IT contractor, for instance, should be seeking cover for around £1-2 million). If you’re working via an Umbrella Company, you don’t need to panic – you’re likely to be automatically covered by a business insurance policy. For sole traders or those operating thorough a Ltd Company, check the general business insurance package offered by many insurers. You might well find that employer’s liability insurance is thrown in as part of the deal. Whatever you do, if you value your business, don’t place contingency in the hands of chance – get insured instead.
