Insurance worth considering
Insurance cover for contractors for payment of Tax and National Insurance Contributions, Interest and Penalties as a result of being reclassified by the HMRC as “caught” when previously deemed as being outside of IR35. IPSE members can get more information about this from Abbey Tax Protection.
Permanent Health Insurance
This provides contractors with income protection in the event of suffering a permanent disability or a long-term illness.
Income Protection Insurance
This provides benefits to policyholders who are incapacitated and hence unable to work due to the contraction of an illness or suffering an accident.
Critical Illness Insurance
A contract between a policyholder and a life insurer to pay a pre-agreed sum of money to a designated beneficiary (not necessarily the policyholder) in the event of the policyholder’s death, or in some cases, in the event of terminal or critical illness. This is typically covered as a strand of life insurance as described above.
Business Interruption Insurance
This cover protects your business from unforeseen circumstances that may result in loss of income such as a fire, flood or major theft leaving your business premises unusable.
Legal Expenses Insurance
This provides policyholders with cover against the potential costs of legal action against an institution or an individual. Most insurances of this type come with a free legal advice helpline service.
Things to remember when buying insurance:
- It can be more cost-effective to buy employers’ liability, public liability and equipment insurance as single package.
- Premiums will depend on the type of business, your turnover and the number of employees. Don’t underestimate the level of protection you think you need and don’t underinsure your property.
- Read the small print in any policy documents. Question any clauses that you don’t understand.
- Be scrupulously honest with your insurance company about information relating to your business and any previous claims.
- Specialist freelancer/contractor insurance providers
- IPSE's Guide to freelancing
- IPSE's Guide to freelance insurance