There are so many benefits that come with contracting – not only will you have more control and flexibility, but you will also have the potential to earn more than a permanent worker in the same role.
There is no doubt that the advantages of contracting far outweigh any negatives, however, there will be more responsibility that comes with this method of working – including thinking about taking out certain insurances to protect you and your business.
Here are a few different types of insurance that you may need to consider:
PROFESSIONAL INDEMNITY INSURANCE
Professional Indemnity Insurance, or PI insurance has been designed to protect you from any claims that are brought against you by a client.
They may raise an issue with work that you have carried out for them, make a claim against you for loss of documents or data or negligence – if this is case, PI insurance will help to protect you with such claims.
For contractors who give out advice, specification or designs, this type of insurance is vital.
EMPLOYERS LIABILITY INSURANCE
If you do have employees, then it is your legal obligation to ensure that they are kept safe.
Employers Liability (EL) Insurance is there to protect your business by helping to pay out compensation should an employee become ill or injured from carrying out duties in the workplace, for which as the Employer are responsible for.
It is a legal requirement for any business with members of staff to have this type of insurance and you can be fined as much as £2,500 for every day that you are not properly insured.
You also need to be aware that you can be fined £1,000 if you do not display your EL certificate or refuse to make it available to inspectors when asked.
As soon as you become an employer you must take out EL insurance and your policy must cover you for at least £5 million and come from an authorised insurer.
PUBLIC LIABILITY INSURANCE
Although not a legal requirement, having Public Liability Insurance is handy for protecting you and your company against any accidents to third parties, that may take place on either your company’s grounds or a client’s, where your staff may be visiting.
If an accident occurs and it is your company’s fault, then a client or member of the public can make a claim against the business – this could be as simple as spilling a drink over a client’s computer, or someone in your building slipping on a wet surface.
It’s certainly 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.
PERSONAL ACCIDENT INSURANCE
If your business relies on either you or a key member of staff to carry out specific duties within the business, then it may be worth taking out Personal Accident Insurance.
If you or a vital member of staff are injured to an extent where they are unable to work, having this type of insurance can be extremely useful.
This cover will pay your business a weekly amount and if any sort of injury suffered results in a permanent disability, or even death, your business could receive a lump sum payment.
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