Insurance cover for contractors
You have probably considered some form of insurance for your business, if like me, you have been self-employed. i used to believe that my home insurance was adequate cover, when working as a freelancer. Thankfully I was never required to put this to the test, otherwise I would almost certainly have found that I was wrong.
Office insurance cover is an absolute must, if you want to stay in business indefinitely. It is a good way of gaining client credibility, and creates a sense of a ‘level playing field’. It is not a case of one rule for the big boys and another for you. In the eyes of the law, you are no different to a large company who employs a vast number of staff.
In the IT sector of industry, most contractors have a legal obligations to have the correct insurance. For all sole trader contractors it became law to have to set up a limited company. With this limited status, comes a need for special limited liability insurance, which has two clearly distinct areas to consider:
1. General liability: covers all damage that you may cause whilst on the employer’s premises, extending to injury or damage to a member of the public.
2. Professional liablility: covers omissions and errors that may surface during the length of the contract. Using my business as an example, cover may help me in the event that i made a mistake using an online library without a licence.
You will need a different insurance cover, if you make a living using a van. Specific business vans insurance is available and is tailored towards the insurance of the precious cargo contained within. Some of the benefits that you should expect are:
1. 24 hour breakdown recovery: coverage over a twenty four hour period for breakdown and recovery.
2.Vehicle replacement: covers the replacement of your vehicle should it be involved in an accident.
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