Business Insurance for Contractors
When you think about insurance, the words boring or mundane will possibly spring to mind. Those who think a little deeper about it will probably worry about the huge costs associated with a multitude of seemingly useless services. The truth is, insurance doesn't have to be expensive and it shouldn't be considered a waste of money for you and your company. You wouldn't drive your car without insurance; neither would you choose not to insure your house, so why do so many people not consider insurance for their business?
Why do I Need Insurance?
For some there is a legal requirement to hold insurance. The Employers Liability legislation requires all employers to provide legal liability cover for their employees as they could suffer injury as a result of their activities. This rule has limited exceptions in law, however a limited company employing only its director, who also owns 50% or more of the share capital is exempt from Employers Liability legislation. If this applies to you then the law does not require you to hold any insurance, but any prudent individual would normally choose to protect themselves from liability which might arise as a result of their business activities.
How Much Does Business Insurance Cost?
Purchase Business Insurance
from Kingsbridge Professional Solutions:
In a vast majority of cases, contract conditions will insist that you hold certain insurance cover, usually Professional Indemnity, Public Liability and Employers Liability. Failure to provide this cover could lead to you being prevented from working as you will be in breach of contract.
What Insurance Should I Have?
As a freelance contractor or consultant there are a number of different insurance products that you can purchase, but deciding what you need can be difficult. With an extensive knowledge of the freelance industry, Kingsbridge Professional Solutions have put together a cost effective package to meet the main exposures you or your business could face. By carefully selecting cover appropriate for you KPSol have removed the complication of picking cover and limits to purchase separately.
Summarised below are an explanation of each of the covers provided in their unique package and why they are appropriate for you:
Protection for claims made against you as a result of allegations of professional negligence. Cover includes legal defence costs and any damages awarded. Claims for negligence can be made against any company providing professional services.
As a professional, the design, advice or specification you provide in the course of your business will be relied upon by others. Any errors or bad advice which you give could lead to financial loss from those relying on your advice.
Cover is provided on a "claims made" basis. Effectively cover needs to be in force at the time the claim is brought against you, so KPSol advise that Professional Indemnity is a long term commitment. It should not be purchased just whilst you are on assignment or contract, as the cover ends as soon as you cancel or lapse the policy.
Protection against claims for legal liability, in respect of accidental bodily injury to third parties, or damage to third party property arising in the course of your normal business activities.
Whether on your own premises or at a clients site - you have a duty to protect anyone who might be affected by your activities. If you fail in this duty and someone is injured, or property is damaged as a result of your actions then you could become legally liable to them for compensation.
Personal Accident Cover:
If you are injured as a result of an occupational accident and are unable to work, then you are likely to suffer financial loss. Your employment status means you will more than likely have no other person to hold responsible. Regardless of blame, Personal Accident cover will pay you a weekly benefit whilst you recover from your injury. In addition lump sum payments are payable for death or permanent disability resulting from an occupational accident.
Protection against claims from employees for legal liability in respect of injury or disease which arise in the course of their work and for which you are deemed to be responsible. Employers Liability insurance is a compulsory insurance for all employers with limited exceptions in law.
Most clients and agencies do not understand the legal exceptions to the legislation and many contracts are drawn up without regard for the true legal requirements. To assist KPSOL policyholders in achieving compliance with contractual obligations Employers Liability cover appears on the KPSol schedule. Note - those who are not exempt from the legislation must ensure they hold an Employers Liability certificate to comply with the law. Always contact your broker for advice.
Directors and Officers:
Directors and Officers Liability Insurance provides financial protection for you as the director of your company in the event you are sued in conjunction with the performance of your duties as they relate to the company. As a director you have numerous responsibilities for which you can be held personally liable - this cover will provide for legal defence costs to protect your financial assets.
How Much Does Business Insurance Cost?
Purchase Contractor Business Insurance
from Kingsbridge Professional Solutions.