Insurance cover for contractors

If, like me, you have been self employed you have probably considered the need for some form of insurance for your business. As a self-employed worker, I once thought that my home insurance cover was more than enough. The policy would have proved me wrong, so it was fortunate that I never had to depend on it in a real situation.

Office insurance cover is an absolute must, if you want to stay in business indefinitely. It is also a way of gaining credibility with your customers, as it creates the impression of a level playing field. It is not a case of one rule for the big boys and another for you. The law does not see you as any different to a large company that employ a multitude of people.

In IT, most contractors are required by law to have the right level of insurance cover. All sole traders and one-man-bands had to set up a limited company. With this limited status, comes a need for special limited liability insurance, which has two clearly distinct areas to consider:

1. General liability: covers all damage that you may cause whilst on the employer’s premises, extending to injury or damage to a member of the public.

2. Professional liability: covers errors and omissions arising whilst in the course of the contract. For within my business as an example, cover might protect against making a mistake in failing to authorise a picture from al library.

If your self-employed role involves the use of a van, then a different type of insurance cover is required. Specific business van insurance is available and is tailored towards the insurance of the precious cargo contained within. Some of the benefits that you should expect are:

1. 24 hour breakdown recovery: covers the breakdown and recovery of your vehicle over a twenty four hour period.

2. Replacement vehicle: if you van is involved in an accident, it will be replaced as soon as possible.

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