Professional indemnity insurance is designed to protect contractors against claims for negligence (for example making a mistake or giving bad advice). It also provides cover for loss of documents, loss of data, breach of intellectual property, and defamation and libel. Holding professional indemnity insurance serves as a key IR35 indicator – as it is seen by HMRC as being a key indicator of genuine self-employment.
Public liability insurance provides cover for damage to third party property, as well as injury to third party persons. It'll also cover any legal fees that come about as a result of claims you have to defend. Public liability claims can therefore be very costly, so all contractors should consider this cover.
This is the part of the policy we receive the most claims against.
As a contractor, the main catalyst for any enforced time away from jobs is likely to be caused by injury. If you're injured and unable to work, you're likely to be looking at a significant financial loss. If that injury occurred in the course of your work, and if you have personal accident cover in place, you'll be paid a weekly sum whilst you recuperate (up to £500 a week.) You'll also receive a substantial pay-out if your injury leaves you permanently unable to work.
Even though you work as a contractor and don't have any employees of your own, this cover is required by law in certain circumstances. If you're employing a spouse or partner for clerical work, for example, then it is needed. Also, if you have a substitution clause in your contractor – a key IR35 indicator – then this cover would step in if you are required to send a substitute contractor.
As the Director of your limited company, this means that you could be held accountable if your business was accused of financial mismanagement, a health and safety failure, a legislative breach or a breach in company law. In the event of this happening, this cover would step in to provide cover for legal fees that may arise.
Our cover doesn’t stop there. We offer optional additional cover, so you can get everything that you might need in one place. Whether that’s Legal Expenses or IR35 Protect, Cyber Liability insurance, or Health insurance.