Insurance for contractors is of utmost significance,covering you against legal costs,unexpected damage and even cyber attacks. There are several sorts of contractor insurance available,so it’s a wise move to get comfortable before choosing the best one for you. That’s where - can help,with our review of the several kinds of cover available to contractors… Public liability insurance There are two types of liability insurance availablefor contractors. {The first is public liability insurance,which insures any risk to the public and the resulting claims. |} This might be anything from the postman slipping when sending to your site,falling debris out of scaffolding causing harm or just somebody tripping over a loose cable while passing. It also includes your customers when they visit your premises,as well as any damage which may be caused by you or your employees when seeing a customer’s site. Let’s say you knock something expensive as you’re there — they won’t think twice about claiming for that damage. In short,public liability insurance is vital for anybody who deals with clients or customers face to face. The cost will depend on a number of factors,such as: { Your business Just how many employees and customers you have Your location Previous claims Employers’ liability insurance |} The other sort of cover is employers’ liability insurance,which is a legal necessity for contractors with one or more employees. Here’s the distinction: employers’ liability insurance protects you against costs from reimbursement should employees become injured or unwell out of work. As soon as you take on any employees,you have to be insured for at least 5 million by employers’ liability insurance. Insurance must be supplied by an authorised insurer also it comprises any casual workers or short-term contracts. Fail to do so and you may face a fine ofup to #2,500 per uninsured moment. Professional indemnity insurance Having professional indemnity insurance,you’re shielded from any claims from the services,goods or advice. So,if a client asserts thatyour work is insufficient or incomplete,your insurance will cover the expense of the legal and any expenses as well as any compensation should they succeed in maintaining against you personally. {Professional indemnity insurance is obligatory for several professions — such as management consultancy,business consultancy and IT contractors — to be able to secure contracts. |} Fundamentally,customers need to know you’re insured,so they understand they are covered too. {Even when you’re not legally qualified to carry out professional indemnity insurance,it’s always better to be safe than sorry. |} Legal fees and reimbursement can pile up and cost tens of thousands just for a single claim. They can be crippling if you have to fork out yourself,while the expense of insurance is completely manageable. Personal injury insurance As a contractor,there is no sick pay to tide you if a serious accident stops you working. Instead,you’re going to be short of cash or reliant on your savings. That’s where personal injury insurance comes from. When you’re covered by personal injury insurance,then you will receive a continuous payment to cover the reduction in profits even though you’re from work,or even a lump sum in case you suffer a permanent disability. Personal injury insurance can also be taken out for key employees. Again,when one of your employees is injured,it’s you that will have to cover their wage or sick pay. Statutory Sick Pay is 92.05 a week for up to 28 weeks and can no longer be retrieved from the government. That’s over #350 a month,which might result in considerable problems for many contractors if they will need to cover it themselves. Also as temporary accidents,personal accident insurance can be taken out to cover death. {A lump sum will be paid out for people that are insured by the policy. |} This may help relatives of this contractor,or the contractor themselves if one of their employees can’t work. Contents insurance Insurance to your office contents protects you if any office equipment or furniture is lost,damaged or stolen. This might be computers and office telephones,furniture such as chairs and desks or even important files which are saved on your assumptions. You can even cover portable items,which aren’t stored permanently in your office. Fortunately,with the right flexible coverage,you can get insurance for distant working too — so any employees will be insured when working in the home. Buildings insurance is useful for contractors who have their office. Unlike contents insurance,it covers water and fire damage to the office itself. Without it, a fire or escape could set you back thousands. However,it’s important to get contents insurance together with buildings insurance,since no contents are insured by the latter. Most contractors are reliant on digital tools somehow or another — whether it’s for communication,payment or simply data storage. Needless to say,any data breaches,hacks or information loss can set you back and cost you big. That’s where cyber insurance comes in. Also called cyber risk insurance,it insures for the restoration process after any cyber damage or loss. This may include exploring what went wrong,notifying and compensating customers,and reimbursing financial losses. Which type is right for you? Contractors’ insurance is not an instance of”either-or”. On the contrary,it’s about deciding where the risk lies and which programs are required to cover you. Professional Indemnity and Public Liability would be the two most common insurance forms held by contractors — in addition to Employers’ liability insurance because it’s required by law. However,Professional Indemnity insurance is expected by several regulators and necessary for members of several professional bodies. {Due to this,both Professional Indemnity and Employers’ liability insurance are supplied as standard by umbrella companies.|} The other kinds of insurance — such as cover forcontents,cyber attacks or personal accidents — are optional,but will provide that extra peace of mind. Make things easier {If you’re looking for peace of mind with contracting work,- can help. |} We help contractors find the right umbrella company and accountant,so there is no need to worry about citizenship and taxes. Want more information? Don’t hesitate to contact us today.