Contractor Business Insurance

As a limited company contractor, your personal assets and possessions are protected by your company, but. . .

• What happens if there is an accident on a job?
• What if you are in an accident and cant work?
• Who will pay to recover the lost cost should there be a claim made against your company? 

Insurance can be costly and it’s easy to be tempted to not get cover at all. But think about how much work and take home pay you could lose by not being insured.

At Integro, we work with some of the best insurance providers in the market. They provide completely tailored insurance packages to suit the wants and needs of contractors and freelancers. With exclusive deals only for Integro clients.

If you know what insurance you need and are ready to get started, visit our recommended insurance providers to get a quote today:

• Kingsbridge
• Caunce O’Hara

For more information, here we breakdown exactly what each business insurance covers and who we recommend is the best in the contractor and freelancer market.

What insurance do I need as a contractor?

The most common insurance products needed for contractors are the following – these are:

Public Liability

Public liability insurance is an insurance that every limited company should have in place.

If, for example, you are out working on behalf of your company on a client site and one of the client’s staff were to trip and fall over some of your equipment there is a risk that they could raise a claim against your limited company.

As with all insurances, the premium will vary depending on the nature of your work and the risks associated with it. Public liability insurance is not very expensive for the majority of contractors, freelancers and consultants.

Professional Indemnity

Professional indemnity insurance (PII) is the most important business insurance for a limited company to have in place. Its purpose is to protect the company in the event that one of its clients brings a claim against it in relation to the work that has been carried out.

A limited company is liable for making good on any damage caused by negligent or faulty work but with PII the costs of doing so are covered. This cost could turn out to be far more than the work billed for so it is well worth having professional indemnity insurance in place. For example, a software product that inadvertently introduces a virus into a client’s systems could cause significant damage and associated costs.

When working in a permanent role your employer will have professional indemnity insurance in place for this reason; whereas when you are working through your own limited company your company has responsibility in this area.

Many contracts will insist that your limited company does have professional indemnity insurance in place. Your proposed contract is a good place to start when working out what level of professional indemnity insurance you should be buying.

Employers Liability

Employers liability insurance is a legal requirement for all employers who employ more than one person. If the only person on the payroll of your limited company is yourself, then there is no need for you to purchase employers’ liability insurance. However, once you employ a second person then you will need to set up this insurance. Employer’s liability insurance protects the company in the event of an employee trying to claim compensation for an illness or accident that they believe occurred as a result of their employment.

This applies even if the second employee is your spouse or partner. Although it may be completely inconceivable that your spouse or partner would bring a claim against your limited company it is still a legal requirement to have employers’ liability insurance in place.

What other insurance products could help benefit contractors?

The other less traditional insurance products are:

• IR35 Insurance – more commonly covered under Tax Enquiry Insurance or Tax Liability Cover
• Employers Liability
• Cyber Liability Insurance
• Legal Expenses Insurance

These may be classed as ‘add ons’ to more traditional insurance packages. For more information why not speak to our recommended insurance providers?

Alternatively, if you are unsure what cover your contract needs, one of our qualified accountants can help. Simply call 0207 0962659 or email christian@integroaccounting.com