As lockdown measures ease and we find ourselves adjusting to the new normal, some contractors are starting to see clients return, while others are finding that work is still slow. These are unprecedented times and we know that many are finding them tough, but as things begin to creep back towards normality, the best thing you can do as a contractor is make sure you’re an attractive prospect to recruiters and end clients.
This can be achieved by ensuring you’re ready to jump into an opportunity when it arises; a big part of this is having your business insurances in place. So, if they’re coming up for renewal, or you’ve let them lapse during lockdown, now is the time to get them organised.
What business insurances should I have as a contractor?
Essential contractor insurances
These are the three biggies when it comes to business insurance. These are the ones that every recruiter and end client will expect you to have and will specify in your contract.
In short, you need these to work and that’s why they’re included in Kingsbridge’s standard insurance package.
- Professional indemnity – This protects you from the financial consequences of ant professional negligence action taken against you. Should you make a mistake in an assignment, you client could demand compensation. Professional indemnity covers your legal expenses and any damages awarded so that you don’t have to pay them yourself.
- Public liability – This gives cover for damages awarded to someone should you injure them or cause damage to their property in the course of your work. It will also cover any legal costs, fees and expenses related to the claim.
- Employers’ liability – This can be a frustrating one if you don’t employ anyone, but most contracts demand you have it regardless. However, an employers’ liability claim could be made by someone you hire as a substitute to carry out work on your behalf so, if nothing else, having this insurance is a handy IR35 indication to show you hold right of substitution.
Desirable contractor insurances
These are the business insurances that are not usually required as standard, but can either make you more attractive as a candidate, or can offer added benefits for you.
- Occupational personal accident – Included as part of our standard business insurance package, this helps to protect your income should you be injured as a result of an occupational accident and then are unable to work. It pays you a weekly benefit until you’re back on your feet, or a lump sum to you or your beneficiary should you be left with a permanent disability or loss of life.
- Directors’ and officers’ liability – We also include this in our standard package, as it protects your financial assets should someone take legal action against you as director of your limited company. This could include things such as financial mismanagement, breach of company law, or health and safety failures.
- IR35 Protect – This is one that has the capacity to make you a more attractive hire, particularly to fee-payers such as recruiters. IR35 Protect flexes to cover everyone in the contractor supply chain so that anyone who is financially liable is covered for taxes, interest, and penalties from HMRC. This is important when you consider that liability will shift to the fee-payer with the April 2021 IR35 reforms. The Standard and Premium packages also include IR35 status reviews to give you confidence in your status determination.
- Health insurance – This cover is one that can provide help to you and your family in times of need by offering 24/7 GP access, physiotherapy sessions, stress support, a nurse-led helpline, health checks and diagnosis. It’s the kind of benefit that employees often get but contractors miss out on, so it’s worth adding to your arsenal.
Get ahead of the curve with business insurance
Businesses are slowly but surely coming round to the fact that remote working is going to be the reality for the long term, even as we get back to ‘normal’. Because of this, remote working opportunities will almost certainly start to pick up over the next few weeks, so the best way to get noticed is to be ready to go at the drop of a hat.
You can facilitate this by getting your business insurances lined up and ready to go if you don’t already have them in place.
The good news is this doesn’t need to be a long, drawn-out, tedious process. You can give our expert, friendly team a call on 01242 808740 and we can help you work out which insurances are right for you, or you can visit our website to get a quote by filling in a few quick forms that tell us about you and your business. It couldn’t be easier.
