PROFESSIONAL INSURANCE

On this page we have put together policies that contractors should consider before starting a contract. Insurance companies will take the following into consideration before giving you a quote.
Your annual turnover, Type of business, working through an agency or direct

PUBLIC LIABILITY

Public liability policy will protect you against your legal liability where you accidentally cause damage
When you enter a shop or establishment they are normally covered by Public liability in case of a accident that the shop or establishment will be liable for

EMPLOYERS LIABILITY

Employers Liability protects employers against claims for injury or illness brought by employees. Employers' Liability requires that employers must have cover to a minimum of £5,000,000 in case of a claims, insurance companies normally advice cover for 10m. This is not a popular policy with contractors, as you would be claiming against your own company.
5% can be claimed as part of the IR35 general allowance under Public and Employers Liability insurance

 

PROFESSIONAL INDEMNITY

Professional indemnity is financial protection against any error in the advice or work you give to your client. With contractors being fully responsible for their services means that you are also responsible financially to your client for the mistake made.

Many of our visitors will agree that Professional Indemnity is not the first thing on a contractors mind, as you do not expect to make error, nevertheless is does to the best of us.

Professional Indemnity save guards you and your company in case a client decides to pursue a claim for financial loss or damages, against any alleged mistakes, more and more clients are asking that a contractor be covered before starting a contract. In some case visitors to ACW have advised that clients have asked for physically proof on the first day of starting a contract

These claims are rare but can be a possibility.

By having Professional indemnity Insurance you are portraying yourself as a professional who is serious about contracting and serious about offering the client value for money, visitors to our site have informed ACW that having mentioned P.I.I in interviews allows the client to feel at ease.

Professional Indemnity insurance, can be claimed as a 'Schedule E' expense - in addition to the 5% allowance, so this will be an attractive scheme for many. Professional Indemnity insurance is the most popular scheme for contractors.

 

TAX & VAT INVESTIGATION

This policy protects you against any investigation by the tax HM Taxes, HM Customs & Excise (VAT) & any other employer's investigation. This policy is now very popular and is a must due to the IR35 law.