A Guide to Insurance for Contractors

(6 minutes to read)

There are many different types of insurance that a contractor will find useful for their working practices. Just a few examples include Professional Indemnity Insurance, Employers Liability Insurance and Office Insurance.

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.

EXCLUSIVE DISCOUNT

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

Public Liability Insurance

Although not a legal requirement, having Public Liability Insurance is handy for protecting you and your company against any accidents 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 become ill or are injured to an extent where they are unable to work and business cannot carry on as usual, 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.

Office Insurance

Having office insurance will help to protect your place of work with regards to all of its contents.

This is particularly useful for repairing broken business equipment that has been accidently damaged, or replacing items that have been lost or stolen.

Exclusive discount

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….


Disclaimer

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

Whats next…

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Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, ContractorUmbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of ContractorUmbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, ContractorUmbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use CashPlus free of charge for the first year, saving you £69.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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