Introduction - What do you need?
Being a contractor carries certain obligations and legal responsibilities.
You have a financial responsibility to your client for errors that you make. Although claims against contractors are rare, they do happen and the claims can be very high!
Important factors to consider:
- Clients have a legal recourse at law to claim for mistakes/negligence by contractors.
- In most cases an agency contract will not protect you.
- The majority of clients legally require you to have some level of Professional Indemnity Insurance, which supports your independent status.
- Office Insurance provides expenses cover to legally defend or pursue your rights, and liability insurance which protects damage to both your own and clients property or equipment.
Having insurances fully protects you and provides you with peace of mind.
How much do these policies cost?
Price are far less expensive than you may think and depend on the following factors:
- The level of PI cover required
- The annual turnover of a contractor's company
- The number of employees in the company
What policies are available?
Professional Indemnity Insurance is the most common insurance contractors purchase and the majority of clients will require you to have some level of cover.
It meets the cost of defending claims made against you, including damages that may become payable.
Claims can occur where a client suffers a financial loss as a result of alleged mistakes or omissions on your part. You may even be sued by a client who is merely dissatisfied, but has no valid claim, leading to substantial legal costs and time away from contracts.
The Office Insurance package provides the most comprehensive cover you can buy online. It can be tailored to your own business needs.
We provide 'all-risks' cover for your contents and computers which you can top up with:and you
- Public liability - to protect your business from any third party claims for injury or damage e.g. a courier tripping over a computer cable and injuring his back
- Employers' liability - a legal requirement if your business has any employees
- Portable equipment - world wide cover for laptops and other equipment including tools and hardware
- Legal expenses - cover for potentially crippling legal costs if you are ever investigated or sued eg. by HM Revenue and Customs
- Business interruption - compensates for loss of earnings due to property damage eg. a flood or fire.
- Buildings - cover for any building owned by your business for fire, flood etc plus accidental damage