Business Basics: Insurance for contractors and freelancer 17 May 2021
Being your own boss can be freeing, but it also means all the paperwork falls onto your shoulders. With changes to IR35, the hardening insurance market and the UK’s new relationship with the EU, as well as the day-to-day business admin, there’s a lot to think about.
Whether you’re a full-time contractor or picking up freelance projects as part of your side hustle, our experts from FSB Insurance Service are here to help. In this guide, you’ll learn:
✔️ the different types of cover available
✔️ how to prepare for the unexpected
✔️ tips for getting the best deal possible
✔️ how to protect your business online
✔️ insurance considerations when working with subcontractors
✔️ how to protect yourself against Professional Indemnity claims
Whether you’re a full-time contractor or picking up freelance projects as part of your side hustle, our experts from FSB Insurance Service are here to help. In this guide, you’ll find everything you need to know about insurance. We’ll look at the different types of cover available, how to prepare for the unexpected and tips for getting the best deal possible
There are many different types of business insurance covers you can buy to improve your business resilience, but you may have some that you are legally or contractually obligated to hold. If you own a car, for example, commercial motor insurance is a legal requirement.
If you have any employees or volunteers, Employer’s Liability insurance is a legal requirement. It covers your legal responsibility for your employees, and in the event of a claim, Employer’s Liability will cover the cost of legal expenses (depending on your policy) and the claim amount. Do your research Public Liability One of the most common types of business insurance, public liability covers your responsibility to third parties.
Similar to Employers’ Liability, it protects you from suffering financially if a claim is made against you or your business in respect of loss or damage to third party property or people as result of your negligent acts. Additionally, if you believe a claim is fraudulent your insurer will help to make sure it’s investigated. Product Liability This covers liability for loss, damage or injury caused by a product you have manufactured, installed, supplied or maintained. If you handle products and or repairs it is important to make sure that you are covered in case a product handled by you causes loss, damage or injury. Building Insurance
This covers the structure you work from, as well as (typically) any landlord contents or tenants’ improvements. If you are responsible for the building your business operates in, this should be priority. Professional Indemnity If a mistake you make in your work whilst advising a client causes a financial loss to a client, Professional Indemnity will help you cover any costs or claims made against you.
Professional Indemnity won’t cover you doing a bad job or for ‘faulty workmanship’. If you install a boiler that isn’t fitted properly and it causes a gas leak, this will not be covered by Professional Indemnity insurance. Many contactors and consultants will find that they have contractual PI limits when entering into contracts with organisations, especially government or councils. The cost of PI cover is increasing as the insurance market hardens so it’s important to reach out to your broker and other brokers such as FSB Insurance Service to find the most competitive quote with the correct limits. Contents Insurance If the contents of your office or place of business are lost damaged or stolen this will help you cover the cost of replacing them. If you use business equipment or tools offsite this may require additional cover
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FSB members can call FSB Insurance Service for advice or to get a quote on 020 3962 8009 Monday-Friday 9am-5.30pm.