Do UK contractors need to hold public liability insurance?
If you are new to contracting, you’re probably still trying to fathom which insurances you actually need and which are…
Business insurances are one of those things that every contractor knows they need but doesn’t really want to spend too much time thinking about. Nevertheless, it is important and you do need it. It’s not exaggerating to say that, if you make a mistake and have to compensate a client, insurance is the difference between it all being sorted for you, and you facing potentially serious financial difficulty.
That’s why most contracts, whether from an end client or a recruiter, require contractors to have certain levels of professional indemnity insurance, public liability cover, and employers’ liability cover as standard. For this reason, most self-employed people know about these insurances and already have them. Often you can’t sign a contract without them. However, there are some slightly more niche covers that are just as important depending on your industry and profession.
We’ve pulled together some of the top lesser-known insurances that you should consider adding to your policy.
OCCUPATIONAL PERSONAL ACCIDENT COVER
Imagine you were injured as a result of an accident while working and you had to take time out. The self-employed don’t benefit from sick pay the way employees do so chances are you’d be looking at a financial loss. Occupational personal accident cover is included as part of our standard insurance package and will pay out a weekly benefit while you get back on your feet again, relieving the financial pressure and allowing you the time you need to fully recover.
If the worst should happen and an occupational accident results in permanent disability or death, a lump sum will be paid out to you or your chosen beneficiary, giving you peace of mind that you or your loved ones will be provided for.
DIRECTORS’ AND OFFICERS’ LIABILITY COVER
Directors’ and officers’ liability insurance is another that’s included in our standard package. As the director of your limited company, you are responsible for financial management, legislative compliance, and health and safety protocols.
You can be held personally liable if your business is found not to have followed rules by HMRC, regulators, or even end clients. Should this happen, your directors’ and officers’ liability insurance covers legal fees incurred by you so that you don’t find yourself out of pocket by having to raise funds.
IR35 PROTECT INSURANCE
With IR35 reforms set to launch in the private sector on 6th April 2021, now is the time to ensure you’re on the right side of the new legislation. Our IR35 Protect package can help you do just that, flexing to cover whoever in the supply chain holds the tax liability. Right now, that’s you, but come next year it will be the fee payer so holding this insurance will give them peace of mind as well as you.
IR35 Protect includes £100,000 cover for taxes, interest, and penalties from HMRC so, should any of your contracts come into dispute, you (or the fee payer) are covered. The Standard and Premium packages also include IR35 Status Reviews, so your contracts can be reviewed by experts to ensure you’re the right side of IR35, allowing you to be confident in your status.
Although your contracts will require you to have certain insurances as standard, arranging your cover shouldn’t be just a “tick-box” exercise. As well as thinking about what you need to simply get a contract signed, you should also be thinking about what you need so you can manage your business with complete peace of mind. At Kingsbridge, we pride ourselves on going the extra mile with our standard cover, as well as offering a range of extras to really give you reassurance. To discuss your requirements, you can call our expert team on 01242 808740 or take a look at our website.
