Which insurances should I consider?

Which insurance?Whichever market you serve or whatever the size of your business, it is essential that you have the right insurance. The objective for most contractors is to keep expenses low – limited expenses means more profit, after all. However, harnessing the level of cover that suits your business needs and budget is vital to cementing your status as a market-leading contractor. It also enables you to provide the best possible service to your own clients.

Luckily, there are a number of insurance products on the market that have been specifically developed for contractors. But which insurance policies are a worthwhile investment for you?

As part of our product range, we work with contractors and recruiters directly to answer any queries they may have. In addition to offering advice and providing support throughout the entire payroll process, we deliver helpful guidance regarding all areas of life as a contractor. In this blog post, we take a closer look at the insurance products that provide essential cover for UK contractors.

Professional indemnity

Professional indemnity insurance is designed to protect you against the legal costs associated with accusations of professional negligence. Professional negligence can come in a variety of forms, from making an error during a project to simply giving bad advice to a client. Most professional negligence cases are the result of clients losing money due to the actions of a contractor.

As well as covering the cost of settling and defending your case against professional negligence, professional indemnity insurance can be called upon in cases of intellectual property infringement, breach of confidence and defamation. Professional indemnity insurance is therefore an excellent investment for contractors. In many cases, clients require you to have some level of this type of cover to support your independent status before they will hire you. Many professional indemnity insurance products are underpinned by specialist support, offering additional peace of mind.

Public and employers’ liability

Liability insurance is available via two separate products – public liability and employers’ liability. Employers’ liability insurance is vital for contractors employing their own workers and protects against claims from these employees. If you are a contractor who works independently or has support from family members to undertake business activities, employers’ liability insurance will not be required.

The protection provided by public liability insurance products is applicable to the work conducted by most UK contractors as described by Contractor UK in their contractor insurance guide:

“Public liability insurance can provide essential protection to your business if you deal with the public, have clients visiting your office or if you or an employee needs to visit other premises. If you do not have any visitors to your business premises you may still suffer a public liability claim; for example if you accidentally damage a client’s property at their office.”

Personal accident

Accidents can happen anytime, anywhere, and being prepared should the worst happen is essential. As a contractor you don’t have the entitlements to sick pay that many employed people have. Personal accident cover delivers a variety of advantages to contractors, whether it is taken out as a standalone or benefit policy.

To read more about how personal accident cover works and the benefits it unlocks, please read our recently published guide to personal accident cover here.

Latest news from our Blog

Let Shield find the right payroll product for you. Call our new starter team on 01992 374144 for professional advice.