As you are in businessof your own account, you will not be covered by any insurance policies belonging to clients to whom you supply your services. The majority of contract engagements will, therefore, require you to have business insurance to protect yours and your client’s mutual interests.
The common insurance policies for contractors are:
Professional Indemnity– this is to cover your business for the cost of legal defence or damages awarded to a client in respect to professional negligence, poor advice, errors or omissions.
Public Liability– this is to cover your business for claims coming from members of the public for personal injury or damaged property caused as a result of the services supplied by you.
Employees Liability– this is to cover your business for claims brought about by employees working for your company.
Gorilla Accounting work with Kingsbridge Contractor Insurance, a specialist insurance provider who offer a combined PI, PL & EL package specifically for contractors and freelancers, to whom we can introduce to assist with their business insurance cover.
Personal Life Cover/Private Medical
Generally, insurance of this nature, if claimed from the business, will be considered a benefit in kind on the part of the director/employee on the basis that ordinarily the cost of these would be met personally. However, there is a tax efficient life policy available to limited company directors, relevant life cover.
Due to the way that relevant life policies are set up, via a discretionary trust, premiums are tax deductible for Corporation Tax (without creating a benefit in kind on the director) and benefits are paid from the trust which sits outside of the death estate (chargeable to Inheritance Tax).
Gorilla Accounting work with The Insurance Surgery who offer Relevant Life Cover, as well as other personal insurance products and can make an introduction via your accountant if you would like some more information.