Staying safe – Key insurances for freelancers and contractors

The inexorable growth of the freelancer and contractor market sector in recent years has provided a massive boost for the UK’s economy, which has given rise to many different insurances for freelancers and contractors. 

Despite the disruption caused by Covid-19, people are still pursuing their passions and starting their own small businesses at an increasing rate every year. However, many begin trading without vital business insurance protection, while some aren’t even aware of the potential consequences of being self-employed without insurance.

We’ve put together a bite-size list for you of freelance insurance policies that you as a self-employed person can benefit from, and why.

1. Professional Indemnity Insurance (PI)

Professional Indemnity insurance is a key policy for most professionals. If you provide advice, consultancy and/or designs for clients, then you will need this type of insurance protection in place. Cover is relatively inexpensive but can save you a lot of money in the long run, especially if a client makes a claim against you alleging negligence in your work resulting in them losing revenue.

Click here to find out what Professional Indemnity covers or call our friendly team to find out more and get a quote today on 0333 321 1403.

2. Public Liability Insurance (PL)

Just because you are working from home doesn’t mean you don’t need this type of cover. If you hold client meetings on your own premises, whether they are held in your office or your home, you need to carry PL cover.

PL insurance will provide cover if something you do causes injury or other loss to a colleague or a member of the public. As an example, a visitor to your business premises (this could be your home office) could trip on a mat and suffer an injury. Or you could be working at a client’s premises and spill a drink on a computer resulting in damage and them pursuing compensation for any repair or replacement costs incurred.

If this sounds like cover you could benefit from, call 0333 321 1403 for a quote.

3. Tax Enquiry & Legal Expenses Insurance with IR35 Contract Review

Tax Enquiry & Legal Expenses insurance is not widely known but is specifically relevant to private sector contractors and IR35. Caunce O’Hara’s Legal Expenses insurance will provide you with £100,000 of cover (any one claim) for legal representation costs incurred during the course of a tax investigation or legal proceeding.

Coverage is broad and can help with the following:

• Employment disputes
• Employment compensation awards
• Property and landlord and tenant disputes
• Criminal defence
• Tax protection
• Regulatory compliance
• Court attendance costs including jury service
• Employment extra protection
• Identity theft
• Contract disputes

The Contract Review is undertaken by our partners at Markel® Tax, who are IR35 taxation experts. If you are in any doubt as to the validity and compliance of your contract, especially in view of IR35 legislation, then the Contract Review can provide you with the clarity you need.

The Contract Review will provide you with a “Pass” or “Fail” relevant to IR35, after which you will receive a detailed report which considers both your contractual terms and working practices based on case law and unbiased opinion.

The Contract Review is only available when purchased with a Tax Enquiry & Legal Expenses policy. It could help to save you thousands of pounds if you are the subject of a tax investigation and deemed to be working inside IR35.

Look out for the Caunce O’Hara IR35 Hub launching soon at www.caunceohara.co.uk

4. Portable Equipment Insurance

If you are a freelance contractor who works on the move, e.g.: you spend most of your working days copywriting in cafes and co-working spaces, or you work on your own laptop at a client’s premises, then it would be prudent to check your current insurance provision, including your home and contents insurance, to confirm whether your business equipment is covered.

Not all insurance policies provide full cover as standard for your portable equipment as part of the policy. At Caunce O’Hara we offer portable equipment insurance cover which will provide you with cover for your portable equipment such as your mobile phone, camera, laptop or tablet, video camera and power cables.

5. Personal Accident and Sickness Insurance

As a self-employed contractor or freelance professional, how would you cope financially if you were unable to work for a lengthy period due to illness or injury?

Personal accident and sickness insurance usually pays out a weekly benefit to the insured person while they recover. A lump sum may also be paid out in some serious cases of illness or injury. 

6. Business Travel Insurance

Caunce O’Hara have been insuring offshore oil and gas contractors for many years. This type of work can require a lot of travel across continental Europe. Business travel insurance will provide you with cover to assist in the event that your flight is cancelled, or your luggage is lost in transit, or if you fall ill while away on a business trip abroad.

All these types of business insurance are available through the Caunce O’Hara Freelance Insurance Scheme. If you would like a competitive quote, call our friendly award-winning team today on 0333 321 1403, or visit www.caunceohara.co.uk