Under the terms of your contract you may be obliged to take out certain types of insurance, or may decide that you wish to be covered to provide yourself with peace of mind.
What types of insurance are available to contractors?
PI provides cover in the event that a client sues you for making a costly mistake or omission whilst undertaking your duties. Typical scenarios which this type of policy would cover include loss of data or documents or unintentional breach of copyright. PI will cover the professional costs of dealing with the claim and also any damages awarded to the client.
Additional extras include retroactive cover will back-date your PI insurance to the date you started contracting, and also run-off cover will protect you for a number of years after the contract has ended.
Cover typically sought by clients should provide up to £1m per claim.
This policy is designed to cover a case whereby one of your employees is injured whilst working for the company. Whilst it is mandatory for all UK businesses, if you are the sole employee of your company and own over 50% of shares, you don’t have to take out EL insurance.
A typical policy will provide cover of £10m.
This cover provides for the situation where a member of the public is injured, or property is damaged as a result of the actions of your company or its employees. One example would be if you damage computer equipment at the client’s site then any subsequent claims arising would be covered.
£5m cover is typically provided.
Tax Investigation Protection
This is designed to cover the cost of professional representation if HMRC selects you for a Tax inspection.
Some policies will also provide cover for any back dated taxes you are subsequently found to be liable for.
Income Tax, IR35, VAT, PAYE and National Insurance investigations are typically included in this type of policy.
This type of policy will provide cover in the event that any of your office equipment is damaged or stolen, or if you make a claim for some other damages made to your office premises.
It is generally cost effective to take out a multi-cover or bundle insurance policy, which will include Professional Indemnity and Business Liability protection, and also offer options such as office or legal expenses cover.
A reputable and cost effective provider of contractor insurance in QDos.