Contractor Insurance

Insurance and liability cover for Contractors and Freelancers

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contractor insurance

Insurance for Contractors

As a limited company contractor working outside of IR35 we recommend holding certain insurance levels that protect you and your clients. This includes Professional Indemnity & Public Liability.

Our insurance partnership with Kingsbridge provides Contractor Insurance to protect you and your clients. Their packages include professional indemnity, public liability, and employer's liability insurance. They also offer add-ons as Legal expenses cover.

As a Kingsbridge insurance partner, we can also offer our contractor clients a 10% discount!

Insurance For Contractors
Kingsbridge offers cover

Kingsbridge offers cover for over 1,000 professions across various industries and their package is specifically designed for contractors and freelancers.

Here are just some of the amazing benefits they offer:

  • A price promise that means you get the best value cover for the lowest price possible
  • Quote and buy online in just a few minutes
  • Receive instant access to your documents
  • Cover for previous work included at no extra cost
  • Flexible payment options
  • Insurance that acts as a key IR35 indicator

In your job, you consistently deliver excellent results. So, why do you need professional indemnity insurance? Professionals can be sued for negligence if their advice or service does not meet the client's expectations. Whether or not the claims are valid, these lawsuits can be costly and disruptive.

Customers expect you to be an expert on each contracted project you work on, so finding appropriate insurance should be a top priority. Having insurance is also the best way to ensure your safety and security.

Types And Levels Of Contractor Insurance Policies

These Insurance policies can be taken out as stand-alone policies or in a combination with each other. Consider various insurance provider’s packages as each has different types of insurance and varying levels of cover.

This type of insurance is fundamental if your business offers professional advice or services. It protects you if claims are made against you and include any damages that become payable due to your advice or service. This includes professional negligence, breach of confidentiality, loss of documents and data and defamation and can typically be taken out as a stand-alone policy.

If a client or member of the public is injured or their property is damaged due to your business, then you are covered for any damages brought against you. Having public liability insurance would then cover the legal fees and compensation costs, up to your policy limit. To meet your client or agency's contractual obligations, you will likely need £5,000,000 in public liability insurance.

The law requires it. Employees who become ill or injured while working for you will be covered for any claims made against you or your business. As an employer, you must always prioritise your employees' health and safety. A simple slip on a wet kitchen floor could result in a claim. Accidents do happen, so protect your business with employers' liability, general liability, and professional indemnity insurance policies. Include it to ensure full coverage for your chosen employer.

Suppose your business suffers or is disrupted due to a data breach or hacker attacks. If this affects IT systems and results in the theft of personal or commercially sensitive data, you and your business will be protected and supported by a legal team. It is there to make sure your business is protected against cyber-crime – things like fraud and data theft and data breaches where confidential information is accidentally shared.

Personal accident cover, also known as personal injury cover, is an add-on to your car insurance policy that doesn't just protect your car, but you – the driver. If you are seriously wounded, disabled, or killed in a car accident, personal accident insurance will compensate you, if you can no longer work, or your loved ones to cover any additional expenses if you die. You will still receive a pay-out regardless of who caused the accident.

If you are dealing with HMRC regarding an IR35 contract review, you can be assured that you will not have to face the potential of a heavy tax bill, and your case will be dealt with by experts who can fight your case.

This type of insurance covers sick pay if you suffer an illness or injury as a contractor. Policies can be taken out based on a contract rate and can protect up to 70% of your income and pays out a monthly income.

This cover should be taken out in conjunction with Income Protection (pays a monthly income if you fall ill). It's a type of insurance that protects you if you get severely ill during the policy's duration. It gives you a tax-free lump payment that you can put towards medical bills, monthly expenses, or lost income whilst you recover.

Contractors can be chosen at random for jury service and are legally required to attend court. If you are called to take part in jury service, your company may lose money. This also applies to any of your employees who may receive a similar request. Jury service coverage compensates you or an insured employee for lost wages. This type of insurance is relatively cheap and gives you peace of mind if you are called up for jury service resulting in you losing out on income from a project.

Your home or office-based business and all your business equipment is protected in the event that they are accidentally damaged, lost or stolen. There are some add-ons that would also protect mobile equipment i.e. notebooks and cover for business loss due to this interruption.
contractor insurance policies

Why do you need it?

  • Negligence – careless in your work, such as giving bad advice or making a mistake
  • Infringement of intellectual property rights- (for example) re-using content from a website without prior permission
  • Defamation – making false or damaging claims about a person or organisation
  • Breach of confidence – sharing confidential or commercially sensitive information without consent

How much cover should you consider?

  • we can provide a variety of covers to suit your business needs perfectly.
  • The level of cover will depend on the risk your business faces
  • You should consider how much legal fees and compensation could cost
  • Check if your clients’ contracts require you to have a minimum level of cover

To discuss your options, call the award-winning Kingsbury Insurance customer service team on 01242 335431.

If you are a Contractor client of Fusion Accountants, you will also get a 10% discount on your insurance premium – just mention us when you call. If you are not a client as yet please give us a call about our accounting services for contractors.

We know it is not always plain sailing and we are here to do our bit to make sure you are protected. That is why we have partnered with Kingsbridge Insurance as they keep things simple offering one package, full cover, and no hidden extras.


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Need to speak to a specialist contractor accountant?

Meet our contractor specialist

Jawaad Hussain

Jawaad Hussain

Client accountant

“I joined the Fusion team in 2015, and as an ACCA qualified Client Accountant, I work closely with SME’s providing tax, accounts, and business advice.

I am also certified with Xero, QuickBooks & FreeAgent. I particularly enjoy using technology and smart apps to support a business’s needs and growth.

I like playing football (BIG Liverpool fan – YNWA!), cycling and trekking. I also enjoy travelling and visiting new places. My favourites destination so far would have to be Istanbul.”

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FAQ 's

l injury to another person. In some cases, insurance will be optional, but depending on your occupation you may find that it is mandatory.

General liability insurance is essential for independent contractors because: It protects you and your business. Independent contractors have the same legal obligations and liability exposures as larger firms. They can be sued for damaging client property, causing bodily harm, or advertising injury. If you are unsure, Kingsbridge Contractor Insurance will be able to talk through the best options.

Warranties are traditionally enforceable for twelve years following practical completion of the works. There is a good practical reason for this. Industry experience indicates that most defects will be revealed during the first two years, with the remainder emerging during the following eight years.

All contractors should have general contractor liability insurance. If they don't have insurance, you could be on the hook for any damage they caused to your property. It isn't common, but in some cases, both insurance companies will deny coverage and refuse to pay for the damages.

Getting a quote. A quote is an offer to do a job for an exact price. Once you accept a quote, the contractor cannot charge you more than the agreed price unless you agree to extra work, or the scope of the job changes while it is underway. Legally, this is known as a variation to your contract.

If someone sues your business and you don't have public liability insurance, you will have to pay for a solicitor yourself. If the claim against you is successful, you might have to pay a hefty settlement – and you might even have to cover the legal fees for the person suing you.