What do you like about being a contractor? It is likely to be the freedom of being your own boss. Whether you are paid by the hour or an agreed sum for the completion of a project, you have no other boss breathing down your neck all of the time. And if you are playing your cards right, as an independent contractor you might well be paid more than someone who is doing much the same work on an employed basis.
Whilst you enjoy the freedom and variety in the work you do as a contractor, your clients may be attracted by the greater flexibility you offer, the ability to hire and fire a contractor as a project progresses, the additional skills you may possess as a contractor but which may be difficult to find elsewhere and the possibility of your offering a more competitive rate than an employed worker.
So much for the advantages and benefits, but is there a downside to being a contractor? You might enjoy the feeling of achievement and success when things go well – but you are also entirely and solely responsible if the advice you’ve given or the work you’ve done results in failure.
It is not simply a dent to your pride when you meet with failure. If your client is able to show that the advice you have given, the recommendations you have made or the plans you have drawn up are in some way responsible for a financial loss – or even worse, someone’s injury – you may be held liable and ordered to pay a very hefty sum in compensation.
To ward off the severe financial impact of any such claim on you or your business, there is contractor’s insurance and contractors’ professional indemnity insurance in particular.
These are specialist forms of insurance and might want to make sure to choose a suitably qualified broker – such as us at constructaquote.com – before arranging your cover.
Why choose us?
- Consider our record – more than 25 years in the business and currently servicing more than 33,000 policies a year
- We offer a specialist service to all kinds of small business – and do it well enough for 95% of our customers to rate the quality of our service as “good” or “excellent”
- When you place a call to us, rest assured that it will be answered by our exclusively UK-based contact centres.
Who needs contractor professional indemnity insurance?
If you are a contractor who offers anything that might amount to advice, a recommendation or written or drawn proposals you may need contractor professional indemnity insurance. In other words, this is a form of insurance likely to be needed by just about any contractor.
Why? Because however carefully you have endeavoured to give clear and well-informed advice – based on your knowledge and experience as a contractor – there is always the possibility of something going wrong. There is always some margin for error. But a margin that might be costing your client dear.
In order to recover the costs of the faulty advice you have given, your client is entitled to claim that you have been professionally negligent and claim substantial damages by way of compensation.
Professional indemnity insurance ensures that you are able to meet any such costs and to continue your contracting business as usual. But the insurance also sends a signal to your clients and prospective clients of your reliability and standing – you have had the foresight to arranged professional indemnity cover so that if anything goes wrong, clients may be assured of compensation. This might make all the difference between your winning and failing to win a lucrative contract.
Do you need public liability insurance?
In addition to your professional responsibilities, you also have a more general duty of care to members of the public at large.
If any member of the public suffers an injury or has his or her property damaged as a result of what they consider to be your general negligence, you may be faced with a hefty claim for compensation.
Such claims may reach sufficient proportions for most contractors’ insurance policies to include a minimum of £1 million public liability insurance.
Do you need employers’ liability insurance?
You might be an independent contractor, working free of any boss, but that does not mean you are not employing others to work for you.
From the moment you take on anyone in this capacity it is vital that you have employers’ liability insurance in the event of a claim alleging your responsibility for an employee’s injury or for some illness or other medical condition which has been contracted as a result of their working for you.
It is vital because the law demands that you have such insurance – so that any employee may be assured of any compensation to which they are entitled. Although the law insists that you have a minimum of £5 million of cover, the employers’ liability insurance we arrange provides £10 million of cover as standard. Why not get in touch today to see how we can protect your business with one of our affordable contractors insurance policies?