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Business Insurance

Small Business Insurance

Business Insurance for small businesses is a key component to secure your businesses risk against potential incidents that could cause financial loss or damage. Business insurance policies you should consider include Professional Indemnity Insurance, Public Liability Insurance and Employers Liability Insurance.

Professional Indemnity Insurance

What will happen if your client alleges to have suffered a financial loss as a result of a professional error or omission in the services that you have provided?  PI Insurance not only fully indemnifies you in these circumstances, but covers the defence costs. Not only does it act as a vital insurance cover, but PI Insurance is also a good business indicator and was mentioned and considered as part of the now abolished business entity tests for IR35 status. This cover is often stipulated as a contractual requirement.

Public Liability

This policy is essential in ensuring a contractor’s complete peace of mind. What would happen if injury or death was caused to a member of the public through your actions? Have you ever considered the potential costs of 3rd party property damage? Public Liability Insurance can protect against claims of this nature. Besides being a good business indicator, PL is usually required in most contracts before work can commence.

Employers Liability

If you are not the sole employee AND hold at least 50% of share capital of your company, you are legally required to carry Employers Liability Insurance. It covers you for claims whereby an employee has suffered death or injury as a result of your negligent actions as employer, including defence costs. A small price to pay should mistake or misfortune occur.

Tax Liability Cover

IR35 is a potentially devastating prospect to any professional contractor, and just because you think that you are IR35 compliant, that doesn’t mean you are safe from an enquiry. HMRC are increasing the number of IR35 enquiries, subjecting contractors to increased scrutiny. In many cases HMRC go directly to your client when carrying out their enquiries, which could potentially harm your status and could reflect badly on any case that may occur. From as little as £199, this comprehensive insurance will not only cover your legal and representation costs, but also your tax & NIC liabilities, interest, and penalties.  Potential liabilities in respect of an IR35 enquiry could easily equate to tens of thousands of pounds.

Contractor Sickness Cover

How would you cope with your finances in the event of illness, injury or disability? As an independent contractor you will not have the security of employment if the case of a long-term illness or injury, therefore with financial obligations such as mortgages and bills, the costs could be overwhelming. From only £26.31 per month, Contractor Sickness Cover provides monthly payments for up to a year, helping you keep on top of your finances, with the addition of a lump sum benefit in the event of death. With the assurance of payments up to £3,000 every month during illness, Contractor Sickness Cover can really be a lifesaving policy.

Travel Insurance

Ever considered having one insurance policy that covers business trips, leisure and even your family members when they travel? Contractor annual travel insurance can cover all of the above and include cover for winter sports or high risk activities. Adding Business Travel Insurance to your package of insurance gives you the convenience of having all of your business policies under one roof.  From £48.44 per year, having travel insurance is one less worry in the fast paced lifestyle of contracting.

Jury Service and Legal Protection

The process of jury service can be a costly and time consuming process for contractors who will not have any employment benefits to cover the costs. Similarly, the costs of funding legal representation for your business can be significant, particularly contract disputes and debt recovery. For only £70.50 pa Jury Service and Legal Protection will represent you and cover the cost in the event of:

  • Contract disputes
  • Property disputes
  • Personal injury
  • Debt recovery

as well as a range of other legal risks.