When you work as a professional contractor or a freelancer, you provide services to clients and suppliers on a daily basis. This inevitably exposes you to circumstances that might not be necessarily in your complete control.
Contracting involves everyday risk such as damage to property, physical injury, copyright infringement, loss of data or documents and even financial loss caused or alleged to have been caused by error or omission in your services.
If the mistake in the course of running your business is huge, a third party may deem fit to bring legal claims against you. No matter how rare such claims are, they are not unheard of and can cost a significant amount of money to defend, even before the value of the settlement is added.
This means if you are uninsured, you will have to foot the bill for legal fees and compensation on your own. So it does sound sensible to have the right insurance in place before any contract begins.
There are two main and important insurances provided to contractors who are starting their own limited company:
This provides protection to your company and meets the cost of defending claims, if a client decides to take action over an error including damages that may become payable.
The most common type of insurance considered by small business; public liability insurance protects your company from claims by third parties in case of an injury or damage by your business to third party property while carrying out your work.
There are wide options available to suit your needs and these can be tailored as per your business requirements including employer liability insurance.
If you are not 100% confident that your contract takes you in or out of IR35, then it is sensible to obtain expert review.more information about IR35
If you are hurt or injured to an extent that stops you from working; that means at the best you lose your income for a few days but at the worst can mean loss of income for months and even a legal case for breach of contract if you cannot fulfil your contractual duties.
As an independent contractor, you are responsible for handling your own insurance affairs. Qdos Contractor is a specialist provider of insurance products for contractors in the UK. Their product range for contractors and freelancers includes business insurances like professional indemnity and employers and public liability, and other contractor insurances like jury & legal protection, contractor sickness cover, travel insurance and office protect insurance.
You can review Qdos’ policies and arrange cover via the online Insurance store.