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Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
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Just4contractors.com > New to Contracting > Insurances
Which type of Insurance do I need?
As a self-employed contractor, you have obligations and responsibilities - you have a legal responsibility to have insurance cover to cover specific risks. In addition. having sufficient insurance coverage is good business practice.
There are several insurance companies which provide contractors insurance schemes that covers a wide range of professions. Many of these types of insurance not only provides protection to you but also to your client. Most of these indicate the level of professionalism that you maintain and will show that you are concerned with those issues.
Insurance Policies that are compulsory for most businesses:
Employers Liability insurance is a policy that covers a company against its legal liability for loss, damage, injury, or disease caused to an employee when they are at work. The Employers Liability (Compulsory Insurance) Act requires that all companies must have employers liability insurance. When the law was ammended in 2005, very small businesses that has no employees became exempted from this law. However even with no employees, every contractor should consider this, because should you hire temporary help that would instantly make you an employer. It is important to consider the substitution issue from an IR35 perspective here.
Third-party Liability insurance is required for all vehicles used in public roads or in other public places. This insurance covers liability for injuries to others, which includes passengers, and for damage to property resulting from the use of a motor vehicle. As a contractor, you need to ensure that the cover is specifically for business use. Given the importance that your vehicle can have on your ability to work, it is highly recommended that you have fully comprehensive coverage rather than than the legal minimum.
Insurance Policies that are advisable for most businesses:
Public Liability insurance protects you from your legal liability where you accidentally cause damage, or loss to someone else's property or when you accidentally cause injuries to someone while working at a client's premises. Even if you work from home, the policy will cover any injuries your client might acquire should they visit you at home. This is something as simple as tripping over a computer cable.
Building and Content insurance covers business property, computers and equipment. If you work from home, make sure that the equipment you use for business is covered by your home contents insurance, otherwise you need to purchase a specific business insurance.
Insurance Policy that is recommended for service providers:
Professional Indemnity insurance provides cover for liabilities that arise from professional advice and services rendered. You have a direct financial responsibility to your client and this type of insurance meets the cost of any financial loss that your client may incur due to any errors or mistakes you might commit. Majority of the clients would require this insurance cover before accepting your contract.
Insurance Policy that is recommended for product businesses:
Product Liability insurance covers claims for injury and damage caused by faulty goods. This is very important for contractors who manufacture, repair or sell retail because any defect could financially impact your business. This policy should include safety claims, manufacturing quality, spoilage, and indemnity costs.
Other Insurance Policies to consider:
Business Interruption insurance covers you against operational losses caused by unforeseen circumstances such as vandalism, theft, natural disaster, sudden incapacity, road works, and IT failure. To save money, you should consider insurers that cover for a longer period and that you have the appropriate cover to meet your business needs.
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There are several insurance companies which provide contractors insurance schemes that covers a wide range of professions. Many of these types of insurance not only provides protection to you but also to your client. Most of these indicate the level of professionalism that you maintain and will show that you are concerned with those issues.
Insurance Policies that are compulsory for most businesses:
Employers Liability insurance is a policy that covers a company against its legal liability for loss, damage, injury, or disease caused to an employee when they are at work. The Employers Liability (Compulsory Insurance) Act requires that all companies must have employers liability insurance. When the law was ammended in 2005, very small businesses that has no employees became exempted from this law. However even with no employees, every contractor should consider this, because should you hire temporary help that would instantly make you an employer. It is important to consider the substitution issue from an IR35 perspective here.
Third-party Liability insurance is required for all vehicles used in public roads or in other public places. This insurance covers liability for injuries to others, which includes passengers, and for damage to property resulting from the use of a motor vehicle. As a contractor, you need to ensure that the cover is specifically for business use. Given the importance that your vehicle can have on your ability to work, it is highly recommended that you have fully comprehensive coverage rather than than the legal minimum.
Insurance Policies that are advisable for most businesses:
Public Liability insurance protects you from your legal liability where you accidentally cause damage, or loss to someone else's property or when you accidentally cause injuries to someone while working at a client's premises. Even if you work from home, the policy will cover any injuries your client might acquire should they visit you at home. This is something as simple as tripping over a computer cable.
Building and Content insurance covers business property, computers and equipment. If you work from home, make sure that the equipment you use for business is covered by your home contents insurance, otherwise you need to purchase a specific business insurance.
Insurance Policy that is recommended for service providers:
Professional Indemnity insurance provides cover for liabilities that arise from professional advice and services rendered. You have a direct financial responsibility to your client and this type of insurance meets the cost of any financial loss that your client may incur due to any errors or mistakes you might commit. Majority of the clients would require this insurance cover before accepting your contract.
Insurance Policy that is recommended for product businesses:
Product Liability insurance covers claims for injury and damage caused by faulty goods. This is very important for contractors who manufacture, repair or sell retail because any defect could financially impact your business. This policy should include safety claims, manufacturing quality, spoilage, and indemnity costs.
Other Insurance Policies to consider:
Business Interruption insurance covers you against operational losses caused by unforeseen circumstances such as vandalism, theft, natural disaster, sudden incapacity, road works, and IT failure. To save money, you should consider insurers that cover for a longer period and that you have the appropriate cover to meet your business needs.
Next Page >>