Insurance for Contractors & Freelancers
Do I need Insurance as a Contractor?
The simple answer is yes. Like any other business, Contractors and Freelancers will need to take out insurance to protect their Company, their clients, any employees and the public.
The level of insurance and the type of insurance that is required usually depends on the client or agency and is often detailed in the paperwork.
The cost of business insurance is borne by the Company rather than the directors personally.
At Gorilla we can help to provide you with a contact to a specialist insurance provider. To be introduced, please complete the form to the right:
The two policies (as `cover’) that Contractors typically require are Professional Indemnity Insurance and Public Liability Insurance, although if your Company employs staff you will also need to take out Employers Liability Insurance.
- Professional Indemnity Insurance – This can be used to cover legal costs and compensation for a case of professional negligence, such as making a mistake on a piece of work for a client or providing incorrect advice.
This is an important insurance policy for a Contractor and proof of cover usually needs to be provided before work commences with a client. Contractors mistakes can often be costly due to the high level of skill and expertise involved.
- Public Liability Insurance - This covers your business for damage or injury caused in some way to the public when carrying out work activity or a trade. Even the smallest of errors can result in a huge liability and equally huge costs.
- Employer’s Liability Insurance – Companies are responsible for the health and safety of their employees while they are at work. Employer Liability protects against injury to employees in the workplace.
In addition, there are also other insurance products available to Contractors including:
- IR35 Tax Enquiry Insurance - Covers costs in the event of any HMRC enquiry into your business, including PAYE reviews, IR35, Section 660a.
- Sickness Cover - Is beneficial if a Contractor is unable to work due to illness.
- Relevant Life Policy - Is a life insurance policy that can be provided as a tax free benefit, so the Company can pay for this without any personal tax implications. For more information on Relevant Life Policies, visit our Contractors Guide to Relevant Life Policy page
Whatever cover you need just let us know and we can introduce you to our partner companies, who have been hand selected for customer service and competitive pricing.