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Insurance for Contractors and Freelancers

15 March 2019

Insurance for Contractors and Freelancers

At Nordens, we recommend that all clients with limited companies are appropriately insured to work. We’re often asked questions on this subject, so here are our answers to a few of the most frequently asked ones.

Why do I need insurance?

Most recruiters require contractors to have business insurance in place. This is because they want to protect their business, but also to ensure that any contractor on assignment is suitably covered should an issue arise as a result of their work. If your actions lead to anything being damaged, or anybody being injured, it is essential that you are insured, as it may result in a costly claim being made against you.

Likewise, if you give your client any advice or complete any work for them that leads to them losing money, they may bring a claim against you.

In these situations, having insurance in place could be what keeps you in business. To ensure that your business is protected financially and that you are complying with your client’s requirements, you need to have suitable insurance in place at all times.

What types of cover should I consider?

  • Professional indemnity
    This covers you if you are accused of professional negligence, making an error or omission, or giving bad advice which results in your client losing money. This provides cover for legal defence costs and damages awarded against you.
  • Public liability
    This provides cover if someone is injured or property is damaged as a result of your actions whilst supplying services. Whether you are on your own premises or at a client’s site, you have a duty to protect anyone who might be affected by your activities. If you fail to do this, you may have to pay substantial compensation.
  • Employers’ liability
    This protects you against claims from employees and it is compulsory for almost all UK businesses. Regardless of your set-up, this is often insisted upon by clients who may require you to comply with a standardised contract.

Where can I buy the right insurance?

There are a number of insurance providers that offer cost-effective and comprehensive insurance to the contracting community. Here at Nordens, we have partnered with Kingsbridge Contractor Insurance, a specialist insurance broker for contractors and freelancers, and – as a Nordens client – you are entitled to a 10% discount off of their standard premium.

Kingsbridge provides a package which includes all the key insurances you may need – professional indemnity, public liability and employers’ liability. This means you generally only need one policy to meet your contractual obligations.

Key benefits of the Kingsbridge package:

• One package, full cover

• Personal accident included as standard

• Cover for previous work

• Instant access to policy documents

• Monthly payment options

• Insurance that acts as an IR35 indicator

• Tax deductible business expense

Interested? If you’d like to know more about Kingsbridge and its special offer for Nordens’ clients, please call us on 020 8530 0720, or email paula.w@nordens.co.uk, and we’ll introduce you to the Kingsbridge team!

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