Contractor insurance – keeping you protected

When working as a contractor it’s important to understand what insurance you need so that you can protect yourself against any unforeseen circumstances.

Umbrella and CIS contractor insurance

Many end clients and recruitment agencies will expect you to have appropriate insurance in place before you begin an assignment.  All Umbrella and CIS contractors with Crest Plus benefit from our in-built package which includes the following high levels of insurance cover:

• £10,000,000 – Public Liability
• £5,000,000 – Professional Indemnity
• £10,000,000 – Employers Liability
• £100,000 – Personal Accident including death benefit and commuting

You’ll find that the cover is highly robust so you are well protected for a wide range of events, and you will not find a higher level of cover within the contracting marketplace. Our aim in providing these high levels of cover is to provide complete peace of mind for all Umbrella employees and CIS contractors.

Limited company contractor insurance

If you’re a limited company contractor you will need to make your own insurance arrangements and obtain the type and level of cover which is appropriate to you and the type of work you undertake.  Sometimes a recruitment agency will stipulate the minimum levels of cover they require for a particular task. We work with Caunce O’Hara, a leading contractor insurance provider, who will provide expert guidance and competitively priced quotations.

In this article, Caunce O’Hara highlights key business insurances that every contractor should consider.

Public Liability

Public Liability insurance will cover you if you cause injury or property damage to a third party. Your contract could involve working at a client’s premises and you could accidentally spill coffee over a computer or laptop. Your PL cover would help cover the costs of repairs or the costs of arranging a replacement.

If your contract allows you to work from your own office, Public Liability cover will be needed if you conduct client meetings at your premises and if you accept deliveries and visits from members of the general public.

The cover includes the costs of defending a claim against you and settling any damages awarded.

If you employ staff, you will be required by law to purchase employers liability insurance.

Professional Indemnity Insurance

Professional Indemnity Insurance (PI) is an absolute must for all business professionals and is specifically designed for any business (freelance, contract or otherwise) offering professional services or advice and will help protect you if:

• You make a mistake, or if one of your clients claims to experience financial loss as a result of your work. A PI policy will cover your defence costs and any damages awarded.
• You break the terms of a contractual agreement. PI will cover your defence costs in the event that a claim is brought against you.
• You become embroiled in a dispute over intellectual property (IP). This could include defending yourself against infringing on someone else’s IP.

 Personal Accident

Personal Accident and Sickness cover can provide cover for your loss of earnings whilst you are unable to work.  

Cover can be extended to include death benefit, loss of limb, eye or paraplegia amongst other circumstances. Our policies can be tailored to include sickness and/or travel cover, depending on your individual needs.

Equipment Cover

Equipment cover is provided on an “All Risks” basis and will provide cover for your business equipment should it become damaged or be stolen, ie: your laptop. Your cover will provide you with a safety net to cover the cost to have your laptop fixed or replaced.

For further information about any aspect of contractor insurance, please contact us on 01244 684700.