Top 3 reasons contractors might consider business insurance

As a contractor, you work on a range of projects for clients that can expose you to several risks. Being self-employed though, means it’s up to you to ensure you have the right insurance in place for your business to combat these risks when they arise.

Here are the top 3 reasons, as told by Hiscox, contractors might consider insurance and the products that can be purchased to protect your reputation: 

1. Mistakes and accidents happen

Like in any job role, mistakes can be made in your work, whether they’re major or minor errors. A client might even suggest there was a mistake during a project with them when you know that there wasn’t. Professional indemnity insurance can give you peace of mind that claims of negligence made against you and the associated legal costs will be covered up to the cover level you select. You may also be eligible to cover your past projects in case future claims relating to that work are made against you.

Accidents happen whether you’re at a client’s site or outside of work. Should you be travelling to a an office and accidentally spill your cup of coffee on your electronic equipment or perhaps find that it has been stolen on the train, then portable equipment cover can help cover the cost of repair or replacement to those all important items.

What if a significant accident happens, leaving you injured and unable to carry out your work? Being unable to carry out work you have committed to means you may not receive the income you rely on. In this case, personal accident insurance is designed to protect your business financially while you recover from your injury. 

2. Client contracts may require you to have insurance

To begin a project with a client, a contract needs to be agreed upon and signed. However, clients may not proceed until you have met their professional and legal standards, which may include showing proof of insurance. Clients often require insurance coverage, so they can be compensated should anything go wrong with the work you carried out.

Don’t panic if you haven’t got the correct insurance in place already as many insurance companies are able to provide you with instant quotes. Hiscox can provide contractors with immediate coverage and documentation so you can promptly show your client you are ready to carry out this work.

3. Growing number of cyber-attacks

The Hiscox Cyber Readiness Report 2022 details that the number of businesses facing cyber-attacks has risen and the attacks themselves have become more severe. Almost half, 48%, of those surveyed had experienced at least one attack and what’s more is small to mid-size businesses are now getting attacked as much as large businesses.

With any business, large or small, now facing the growing threat of cybercrime, it’s important contractors also consider this risk. Cyber and data risks insurance is designed to protect your business and your reputation if it faces a data breach or cyber hack. The effects are wide reaching so the insurance spans to help cover direct losses to your business, response costs and fees for recovery services.

Need to discuss your insurance needs? Call Hiscox on 0800 280 0359 (8am-7pm Monday – Friday) or visit

Friday 30th Sep 2022
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Written by Hiscox

For more than a decade Hiscox have offered specialist professional indemnity insurance to IT contractors. Their understanding of the industry enables them to provide broader protection than many standard professional indemnity policies. Cyber and data, public liability and office insurance (as well as other products) are also available.
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