Working as a contractor comes with numerous benefits, from experiencing more freedom and control, to having the opportunity to earn more than a permanent worker in the same role – but it also means more responsibility, such as thinking about taking out certain insurances to protect you and your business.
Insurances are there to protect you from unforeseen circumstances that could have a detrimental effect on your business and how it carries out work.
PROFESSIONAL INDEMNITY INSURANCE
Professional Indemnity Insurance, or PI, is a type of insurance that helps to protect you from any claims that may be brought against you by a client.
Not every contractor might need this type of cover, however, there may be certain areas and skills that you provide which could mean that you are more likely to need PI insurance.
Some examples are if you:
- Provide expertise, skills or advice to clients.
- Provide a professional service that could be challenged by a client.
- Have access to a client’s confidential information.
- Produce materials that could cause offence or violate intellectual property rights.
Reasons that a client may make a claim against you may be because of:
- An issue with any work you have carried out for them
- Loss of documents or data
- Errors and omissions
Although you may feel completely confident in the quality of your work, any contractor offering the above mentioned skills can be at risk and so to avoid any financial loss, it is definitely worth considering taking out PI insurance.
HOW MUCH WILL IT COST?
There will be many factors to take into consideration when it comes to how much PI insurance will cost you, for example your industry, the type of work you do and the level of cover you want will all play a part in the overall costs.
Make sure you shop around and look for quotes from different companies so that you can compare and see which provider you can get the best deal from for everything you need. Your accountant might also be able to give you further advice and guidance on the subject.
WHAT OTHER TYPES OF INSURANCE MIGHT I NEED AS A CONTRACTOR?
- Employer’s Liability Insurance– Employers Liability (EL) Insurance is there to protect your business by helping with compensation pay outs, should an employee become ill or injured from carrying out duties in the workplace, for which you as the Employer are responsible.
It is a legal requirement for any business with members of staff to have this type of insurance and you must take it out as soon as you start your business.
- Public Liability Insurance– It’s worth looking at taking out this type of insurance should you have members of the public visiting your site, employees visiting your client’s premises or contractors working for you.
You have a duty to protect anyone who may be affected by your activities so therefore, if an accident occurs and it is your or your employees fault, then a client or member of the public can make a claim against your business, in which case Public Liability Insurance would help with any damages.
- Personal Accident Insurance– This type of insurance could help if you or your employees are injured by providing either a weekly or lump sum benefit during the period off employment.
Personal Accident Insurance will pay your business a weekly amount should this happen and if any sort of injury suffered results in a permanent disability, or even death, your business could receive a lump sum payment.
- Cyber and Data Risks Insurance – Cyber security is becoming more and more of a necessity for businesses – whether you are a large or small company. In a world where we are so reliant on technology, cyber and data insurance is ideal for protecting businesses against data breaches and malicious hackers.
As a client of Dolan Accountancy you will benefit for an exclusive discount of 10% when you purchase your insurance through Kingsbridge, this discount will also carry through if you choose to renew your insurance with them after the first year
Ask Kingsbridge to call you in the next hour….
Dolan Accountancy is an Introducer Appointed Representative for general insurance purposes only of Kingsbridge Risk Solutions. Kingsbridge Contractor Insurance is a trading name of Kingsbridge Risk Solutions Ltd. Authorised and regulated by the Financial Conduct Authority. Registered in England No. 4122238