Does a contractor need professional indemnity insurance?
Professional indemnity, along with public liability, is one of the key insurance covers that most UK limited company contractors will…
Contractor insurance can seem like a right headache to sort out. Let’s face it, it’s not exactly a glamorous expense. But you need to have it to satisfy agencies and clients, so you figure you’ll just go for the cheapest premium you can find and that’ll be that.
After all, you’ll never need to use it, will you?
Well? While we would hope your business runs completely smoothly and you never need to use it, experience tells us that some people do have to make claims. Unfortunately, if you’ve opted for a cheaper policy, this can be where you discover to your detriment that you get what you pay for.
You would say that, you sell contractor insurance?
That doesn’t make it any less true. Imagine, for instance, that a client claims you’ve made a mistake and sues you for damages. You go to make an insurance claim, only to discover that your policy only includes public liability cover, not professional indemnity.
Suddenly, you’re faced with paying your legal costs and your client’s damages without any help which could cause you to lose your savings, your home, or even declare bankruptcy.
It sounds farfetched, but this happens more than you might think. And it’s one of the things that used to keep us up at night – which is why we created our all-inclusive insurance package. You pay one fee for one package which includes:
- Professional indemnity
- Public liability
- Employers’ liability
- Directors’ and officers’ liability
- Occupational personal accident cover
But why on Earth would I need all that?
Bearing in mind most agencies and clients will require you to have public liability, professional indemnity and employers’ liability cover as standard, for one fee you’re getting everything you need, plus insurance for a variety of possible eventualities.
We’ve already covered why you might need professional indemnity, but why would you need occupational personal accident cover? After all, it’s not cover that a lot of contractor insurers offer as standard.
Well, it might sound obvious, but when you’re self-employed, you don’t get sick pay. If you have to take time off, you’re just not getting paid. So, if you’re injured in an occupational accident, our cover will pay you up to £500 per week for up to 52 weeks so you have income while you get back on your feet.
But what if I never end up making a claim?
Even if you never make a claim, Kingsbridge Contractor Insurance gives you peace of mind. No one can know what the future will hold and our insurance package means you’re covered for all possible eventualities. This means you never have to worry about what ifs and can relax and enjoy being your own boss.
If you’d like to speak to one of our contractor insurance experts (they’re friendlier than that makes them sound) then you can call us on 01242 808740.
