Top Contractor Insurance Products
Here’s advice on the top Contractor Insurance products that you will need.
We have joined forces with a major company in the insurance field to bring you reasonably priced UK Contractor insurance. Here we explain, therefore, the different types of insurance.
Can be a Mystery
A complex and once expensive area of freelancer finance, the various types of Business Insurances can be a mystery.
Business insurances can protect your company against financial loss. They also assist freelancers in getting contracts. So, they can be a contributing factor to demonstrating to HMRC that their companies fall outside IR35.
There are three types of UK Contractor insurance, therefore, that freelancers should consider.
Professional Indemnity (PI)
Professional Indemnity Insurance provides financial protection to meet the cost of defending any claims made against your company. Claims can occur where a client suffers a financial loss as a result of alleged mistakes or omissions on your part.
Public Liability (PL)
This protects you against your legal liability. It’s for when you accidentally cause damage or loss to someone else’s property. Moreover, it’s also for if you accidentally cause injury to someone whilst working at a client’s premises
Employers Liability (EL)
This insurance isfo the purpose of protecting employers against claims for injury or illness brought by employees.
With the increase in IR35 friendly contracts and over-supply in the marketplace, industry experts have seen that insurance can provide freelancers with a distinct business advantage.
So, Agencies and Clients are increasingly asking to see proof of professional indemnity insurance from individual freelancers before awarding their contracts.
Contractor Mistakes Can Be Costly
Although mistakes and claims in the industry are rare, they can be costly. As such, turning up to an interview with an up-to-date insurance policy can only improve your marketability.
Having Professional Indemnity Insurance also supports your Independent status. The IR35 “in business on own account test” indicates that companies with insurance are more likely to be considered a proper entrepreneurial company. It is, therefore, a pointer to being outside IR35.
Furthermore, this may help you argue against an IR35 ruling. Premiums are fully allowable against tax.
UK Contractor Insurance
Here are the different types of UK Contractor Insurance products you will need.
You should pick the top Contractor Insurance products you need. It’s better to be safe than sorry.