Contractor accountants

When you’re self-employed you face various challenges, risks and scrutiny that those in conventional employment don’t have to contend with. In addition to running your business and doing the work that you get paid for, you have the responsibility of meeting your tax obligations. To that end, working with an accountant is of great benefit to ensure that you are tax-compliant and operating as tax-efficiently as possible.

You also don’t have the protection of an employer if there’s an error in your work, for example, and a claim is made against you. If something does go wrong that results in legal action, the responsibility of rectifying the situation sits with you rather than your employer.

And in the unfortunate event that you suffered an illness or injury that prevented you from working, you wouldn’t receive statutory sick pay, so a long-term illness could result in a prolonged period without any income.

This is where contractor insurance comes in to provide protection for you and your business against any unforeseen circumstances.

What is Contractor Insurance?

Contractor Insurance is a range of insurance policies tailored for self-employed people. They’re designed to provide protection against a range of risks and liabilities such as:

  • Claims made against you regarding errors, omissions or negligence in your work
  • Covering compensation and legal expenses should a third party suffer property damage or injury as a result of your businesses’ actions
  • Damage, theft or loss of equipment that is essential to your business
  • Financial protection should you be unable to work due to injury or illness

Why Should You Protect Yourself With Contractor Insurance?

Contractors and self-employed people should ensure they have sufficient cover in place to protect against potential risks and the associated financial loss. Having contractor insurance safeguards your business and income and provides a financial safety net and security for you and your family, as well as peace of mind.

What Are The Main Types of Contractors Insurance?

There’s a wide range of contractors insurance policies available. The type and level of cover needed will depend on the type of work you do and the risks you face, as well as the financial exposure you’re prepared to face. Contractors will often combine multiple different types of contractor insurance cover to adequately protect themselves.

Contractor Sickness Cover

If you’re unable to work due to an injury or illness, Contractor Sickness Cover will provide you with a monthly financial benefit for up to a maximum of 12 months, enabling you to focus on your recovery without dealing with any financial pressure or being in a situation where you have to return to work sooner than you should.

Personal Accident Insurance

Should you suffer an injury or illness that prevents you from working, Personal Accident Insurance provides you with a lump sum payment. The amount you receive is dependent on the severity of your condition and will provide a financial buffer to tide you over until you’re back to full health.

Public Liability Insurance

If a third party suffers an injury or damage to their property as a result of your business activities and they subsequently take legal action against you, Public Liability Insurance will cover the legal costs incurred from defending yourself and any compensation costs if you’re found to be liable.

Employers’ Liability Cover

Many self-employed people such as contractors and freelancers will work alone, but if you do take on an employee or you take on subcontractors or have people working under your supervision or direction, it’s a legal requirement that you have Employers’ Liability Insurance in place. It covers legal and compensation costs should an employee make a claim against you for illness or injury suffered as a result of their employment with you.

Professional Indemnity Insurance

Mistakes can sometimes happen and in the business sphere, errors, omissions or professional negligence can result in financial loss for a client and legal recourse being pursued. Should this happen, Professional Indemnity Insurance will cover the legal costs incurred to defend your case and any compensation awarded to the client. It also protects you against other liabilities such as confidentiality breaches, intellectual property infringement, data loss and libel and slander.

Business Equipment Insurance

If, for example, you’re a developer or a designer you can’t work without your laptop. Business Equipment Insurance will cover the cost of replacing any business-critical equipment due to theft, loss or accidental damage.

Tax Investigation Insurance

If HMRC opened a tax enquiry or dispute against you, Tax Investigation Insurance will cover the legal costs incurred as a result of defending your case. This cover usually protects against a range of enquiries including those regarding income tax, corporation tax, self-assessment, IR35, VAT and more.

Business Travel Insurance

If you travel a lot as part of your work, Business Travel Insurance will protect you if something unexpected happens. Examples include cover for loss or theft of your luggage, equipment or travel documents, replacement tickets should a flight or train be cancelled, and even medical expense cover and repatriation should you fall ill when travelling abroad.

How to Find the Right Contractor Insurance

Contractor insurance can be confusing as there are lots of different types of cover, not to mention many different providers! The type of cover you need is dependent on the type of work that you do, as well as the level of financial risk you’re comfortable with facing. It’s important to assess the risks that you face and also any insurance requirements that your clients may have, such as having professional indemnity cover in place.

The best way to ensure that you get the right contractor insurance cover at the right price is to engage an expert, and this is why we have partnered with Qdos.

Qdos are long-standing industry experts with multiple awards and more than 30 years’ experience of providing flexible, tailored contractor insurance solutions. Qdos takes a personal approach and understands the challenges faced by contractors and self-employed people, making contractor insurance simple and hassle-free. You can get a no-obligation quote from Qdos here.

If you’d like to discuss contractor insurance or our accounting service with an expert, please can 0330 024 0406 or request a callback.