{"id":1569,"date":"2016-12-12T08:11:10","date_gmt":"2016-12-12T08:11:10","guid":{"rendered":"https:\/\/www.pearlaccountants.com\/?p=1569"},"modified":"2016-12-12T08:11:10","modified_gmt":"2016-12-12T08:11:10","slug":"insurance-for-contractors","status":"publish","type":"post","link":"https:\/\/www.pearlaccountants.com\/blogs\/insurance-for-contractors\/","title":{"rendered":"Insurance for contractors"},"content":{"rendered":"<p>Depending on the type of work you do as a contractor, there will be certain types of insurance you\u2019ll either be required to have, or which still might be a good idea.<\/p>\n<p>The most common types of insurance paid for by contractors are those that cover you from negligence, such as Public Liability Insurance, Professional Indemnity Insurance, and Employers Liability Insurance.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/insurance-for-contractors\/#Legal_requirements_for_contractors\" title=\"Legal requirements for contractors\">Legal requirements for contractors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/insurance-for-contractors\/#How_does_insurance_benefit_contractors\" title=\"How does insurance benefit contractors?\">How does insurance benefit contractors?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/insurance-for-contractors\/#How_much_insurance_cover_do_contractors_actually_need\" title=\"How much insurance cover do contractors actually need?\">How much insurance cover do contractors actually need?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/insurance-for-contractors\/#How_much_does_insurance_cost_contractors\" title=\"How much does insurance cost contractors?\">How much does insurance cost contractors?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Legal_requirements_for_contractors\"><\/span>Legal requirements for contractors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As a contractor you are legally required to have an Employers Liability Insurance policy, but if you are the sole director and employee of your business, as many contractors are, you are not required to. However, if you employ even one employee, even if it\u2019s only a family member, you are again required to have it.<\/p>\n<p>The other insurance types we mentioned previously are not a legal requirement, though it still might be a good idea to have them depending on your circumstances.<\/p>\n<p>Contractors might also want to consider Income Protection Insurance, Jury Service Cover, or Office Contents Insurance, to cover against loss of earnings in events such as getting called for jury service, your office equipment gets damaged, or you are unable to work due to illness.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_does_insurance_benefit_contractors\"><\/span>How does insurance benefit contractors?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you don\u2019t want work fall foul of IR35 rules and be made to pay more tax, having insurance will show HMRC that you are running your business independently, and not an employee of another business<br \/>\nMost recruitment agencies require you go have insurance before they will let you find work through them.<br \/>\nIf any claim is made against you as a contractor, insurance can cover you if you get sued.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_much_insurance_cover_do_contractors_actually_need\"><\/span>How much insurance cover do contractors actually need?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When contractors find work through agencies, the agency will usually tell them what level of cover they require them to have.<br \/>\nHowever, if you are a contractor who deals directly with your clients, and so don\u2019t have an agency to tell you the level of insurance you need, a good rule of thumb is \u00a310m for Employers Liability Insurance, \u00a31m for Professional Indemnity Insurance, and \u00a31m for Public Liability Insurance. While \u00a310m for Employers Liability Insurance seems like a scarily high number, remember that you only need it if you employ at least one person.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_much_does_insurance_cost_contractors\"><\/span>How much does insurance cost contractors?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There is now a lot of competition among business insurance providers, so prices have been pushed down considerably. It all depends on the type of work you do and your level of income, but insurance costing \u00a3300 isn\u2019t unheard of in the right circumstance. The good news is that business insurance is an allowable business expense \u2013 you can ask your accountant about this if you want to know more.<\/p>\n<p>Don\u2019t have an accountant yet? Why not try Pearl? We give a free initial consultation where you can see if we\u2019re right for you, and we have specialist contractor accountants.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Depending on the type of work you do as a contractor, there will be certain types of insurance you\u2019ll either be required to have, or which still might be a good idea. The most common types of insurance paid for by contractors are those that cover you from negligence, such as Public Liability Insurance, Professional <a href=\"https:\/\/www.pearlaccountants.com\/blogs\/insurance-for-contractors\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  Insurance for contractors<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":1570,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4311],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Insurance for contractors - A Quick Guide - Pearl Accountants<\/title>\n<meta name=\"description\" content=\"Depending on the type of work you do as a contractor, there will be certain types of insurance for contractors you\u2019ll either be required to have.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/insurance-for-contractors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Insurance for contractors - A Quick Guide - Pearl Accountants\" \/>\n<meta property=\"og:description\" content=\"Depending on the type of work you do as a contractor, there will be certain types of insurance for contractors you\u2019ll either be required to have.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pearlaccountants.com\/blogs\/insurance-for-contractors\/\" \/>\n<meta property=\"og:site_name\" content=\"Pearl Chartered Accountants &amp; 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