Insurance for Contractors
It is important to have necessary insurance in place before starting any assignment. Working for yourself carries a number of responsibilities and obligations and having an insurance policy in place can help protect you financially if you face a negligence claim whilst at work. Whilst it is rare, claims can be very costly if made against you as a contractor.
More importantly, the majority of clients will legally require that you are covered before accepting your contract.
Factors to consider
- In most cases you won't be protected through your agency contract
- Clients have a legal recourse at law to claim for mistake or negligence by contractors
- The majority of clients legally require you to have some level of Personal Indemnity Insurance, which supports your status as an independent contractor
- Office Insurance provides expenses cover to legally defend or pursue your rights.
- Office insurance also provides liability insurance which protects damage to both your own property or equipment, and that of the client.
- Having insurances fully protects you and is one less thing to think about when working as a contractor
Professional Indemnity Insurance
As mentioned, Professional Indemnity Insurance is the most common insurance cover for contractors and most clients you'll work with will require you to have some level of cover. The insurance meets the cost of defending any claims made against you by the client, including damages that may become payable.
You may need a professional indemnity insurance policy if you:
- Provide advice to your clients
- Handle or work with data that belongs to a client
- Have responsibility for a client's intellectual property
- Provide a professional service and could be challenged on the work you do
Find out more about insurance by contacting our team.
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