There is no doubt that the advantages of contracting far outweigh any negatives – you have more control and flexibility, as well as the opportunity to earn more than a permanent worker in the same role, so it’s no surprise that there are now more people than ever before becoming self-employed in the UK.
However, working for yourself will mean that there will be more responsibility, such as looking at taking out certain insurances to protect you and your business.
There are a number of insurances that a contractor will need to take into consideration, for example:
- Employer’s Liability Insurance– 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 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 set up your business. Your policy must cover you for at least £5 million and come from an authorised insurer
- Public Liability Insurance– It is 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 employee’s 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 to your business, during the period off employment.
- Cyber and Data Risks Insurance– With cyber security becoming more and more important for businesses of all sizes, this type of insurance can help when it comes to protecting your company from either hackers or data breaches.