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New Contractor - What insurance do I need?

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    New Contractor - What insurance do I need?

    Hi,

    So I am an Instructional Designer / Elearning Designer and am wanting to become a contractor. So I am going the limited company route with just myself as Director etc.

    Now I am a little confused on what insurance I am going to need to setup. Is there a broker any of you have used that I can ask some questions of? Or any companies you can suggest I look at?

    From what I have seen so far I need:
    • Indemnity insurance
    • Public Liability insurance



    Thanks.

    #2
    Originally posted by AFKMatrix View Post
    Hi,

    So I am an Instructional Designer / Elearning Designer and am wanting to become a contractor. So I am going the limited company route with just myself as Director etc.

    Now I am a little confused on what insurance I am going to need to setup. Is there a broker any of you have used that I can ask some questions of? Or any companies you can suggest I look at?

    From what I have seen so far I need:
    • Indemnity insurance
    • Public Liability insurance



    Thanks.
    Check the QDOS contractor site. Loads of guides and info there.

    Also check the newbies guide in the links to the right.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      1. Professional indemnity insurance - covers your arse if you mess up. Don't think twice.
      2. Public liability insurance - if you're going to be working on-site or around the public in any way, this will cover you. Probably worthwhile.
      3. Employers liability - unlikely to be necessary if you are the sole director and worker in YourCo. If you take on an employee, or even employ your spouse or make her a director then you need to have this. It's generally cheap and bundled with public liability.
      4. Business equipment insurance - your home insurance may cover some company owned equipment but it will be limited. If you have a home office and keep business equipment in it its worth considering a separate policy.

      I mostly work from home, occasionally on-site and have a dedicated garden office so I have all of the above. The garden office is owned personally and covered by my home insurance but I have a dedicated business policy that covers the contents, certain items away from the office (e.g. laptop, phone) and also includes employers and public liability. I have in the past had this kind of package from Direct Line for Business which was really cheap - about £90 - but they wouldn't cover my garden office so I'm now with Hiscox (about £240 I pay).

      QDOS are worth looking into for professional indemnity.

      Comment


        #4
        Originally posted by AFKMatrix View Post
        Hi,

        So I am an Instructional Designer / Elearning Designer and am wanting to become a contractor. So I am going the limited company route with just myself as Director etc.

        Now I am a little confused on what insurance I am going to need to setup. Is there a broker any of you have used that I can ask some questions of? Or any companies you can suggest I look at?

        From what I have seen so far I need:
        • Indemnity insurance
        • Public Liability insurance



        Thanks.
        In the main. You will have to have both of those before you can start work. The amount of Indemnity cover you need may vary.

        Some agencies insist on employers liability, although it's not impossible to argue a case that it's not needed. IMO, for the c. £20 it's not worth the battle.

        If you need to change part way through then QDOS have a method to refund any unused insurance so you can uplift to the correct level. So I'd suggest you just go with what you need for your first contract offer. It takes <15 minutes to complete.
        See You Next Tuesday

        Comment


          #5
          I used caunceohara insurance broker. PI insurance £78.40 per year.

          However I do not agree one-size-fits-all and that is must to have for every LTD contractor.

          Comment


            #6
            Get some relevant life insurance too. It is dirt cheap snd can be paid through your limited company.
            ______________________
            Don't get mad...get even...

            Comment


              #7
              Originally posted by kaiser78 View Post
              Get some relevant life insurance too. It is dirt cheap snd can be paid through your limited company.
              that does involve keeping your company around as long as you want the cover. That could be some years into retirement. So not necessarily much use.
              See You Next Tuesday

              Comment


                #8
                Note that to be covered by professional indemnity insurance it should be live at both a work and a claim times. I.e. you have to pay for it non-stop.

                BTW
                Microsoft Services Agreement
                Limitation of Liability.
                If you have any basis for recovering damages (including breach of these Terms), you agree that your exclusive remedy is to recover, from Microsoft or any affiliates, resellers, distributors, Third-Party Apps and Services providers, and vendors, direct damages up to an amount equal to your Services fee for the month during which the loss or breach occurred (or up to $10.00 if the Services are free). You can't recover any other damages or losses, including direct, consequential, lost profits, special, indirect, incidental, or punitive. These limitations and exclusions apply even if this remedy doesn't fully compensate you for any losses or fails of its essential purpose or if we knew or should have known about the possibility of the damages. To the maximum extent permitted by law, these limitations and exclusions apply to anything or any claims related to these Terms, the Services, or the software related to the Services.
                Last edited by FK1; 24 February 2019, 14:15.

                Comment


                  #9
                  Originally posted by Lance View Post
                  that does involve keeping your company around as long as you want the cover. That could be some years into retirement. So not necessarily much use.
                  I *think* some relevant life policies can be converted to a regular policy in the director’s name if you wind the company up.

                  Comment


                    #10
                    Originally posted by FK1 View Post
                    Note that to be covered by professional indemnity insurance it should be live at both a work and a claim times. I.e. you have to pay for it non-stop.

                    BTW
                    Microsoft Services Agreement
                    Limitation of Liability.
                    If you have any basis for recovering damages (including breach of these Terms), you agree that your exclusive remedy is to recover, from Microsoft or any affiliates, resellers, distributors, Third-Party Apps and Services providers, and vendors, direct damages up to an amount equal to your Services fee for the month during which the loss or breach occurred (or up to $10.00 if the Services are free). You can't recover any other damages or losses, including direct, consequential, lost profits, special, indirect, incidental, or punitive. These limitations and exclusions apply even if this remedy doesn't fully compensate you for any losses or fails of its essential purpose or if we knew or should have known about the possibility of the damages. To the maximum extent permitted by law, these limitations and exclusions apply to anything or any claims related to these Terms, the Services, or the software related to the Services.
                    WTF does an MS service agreement have to do with PI insurance?
                    See You Next Tuesday

                    Comment

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