Which Business Insurance do I need as a contractor?
We know it can be a minefield for contractors when it comes to purchasing the right insurance cover to protect you and your business. The volume of products available to you can make the whole process a little overwhelming, so we’ve set out some of the essential insurances you’ll need going forward.
Professional indemnity insurance is designed to protect contractors against claims for negligence (such as making a mistake, or giving bad advice). It also provides cover for loss of documents, loss of data, breaches of intellectual property, as well as defamation and libel.
If you do make a mistake for which you’re responsible or are deemed to have been negligent, then professional indemnity will cover any compensation that you have to pay as a result, as well as any legal costs you’ve incurred in the process. A mistake could end up costing you tens or hundreds of thousands of pounds so it’s vitally important to have the right protection in place. It’ll also cover the cost of fixing any mistake you may have made, which could help you to avoid having a larger claim made against you.
Public liability insurance provides cover for damage to third party property or injury to third party persons, as well as covering any legal fees that may arise as a consequence of any claims you have to defend.
It allows you to go about your work safe in the knowledge that you’re covered should things happen to go wrong. Even if your contract doesn’t stipulate that having public liability is a requirement, it’s still a very good idea to make sure you hold it, as it’s a good way of mitigating any risks you might face.
Even if you don’t have any employees of your own, it’s still extremely likely that your client will require you to hold employers’ liability insurance. Most contracts are standardised and require you to have employers’ liability regardless of your situation.
It’ll also cover you if you have a spouse working for your business in some capacity, or if there is a substitution clause in your contract. It’s likely to only make up a tiny portion of the overall cost you’ll pay for your insurance, but does tick an essential box on most contracts.
It’s also highly recommended to consider an additional insurance to protect yourself if you’re injured either at work or commuting to or from work.
Personal Accident Cover:
If you’re injured as a result of an occupational accident and are unable to work, then there’s a good chance you’ll be looking at a significant financial loss, due to the loss of your contract and any subsequent earning potential. With personal accident cover, you’ll be paid a weekly benefit whilst you recuperate. Should your accident leave you with a permanent disability, or cause your death, then a lump sum will also be paid out.
Whether you’re injured in your home office, commuting to work, or at work, in either the UK or abroad, personal accident cover will protect you, meaning you won’t have to worry about those food bills, the mortgage, or any other things you might take for granted when you’re working and earning money.
You can get all of this, alongside other benefits and years of expertise and excellent customer service, at Kingsbridge Contractor Insurance; an expert broker, specialising in a complete insurance solution for contractors. Get in touch on 01242 808740 or visit http://eQuidity.kingsbridge.co.uk for further information.