There’s a lot to consider when working as a contractor – so much so that it’s easy to forget that you need to put in place the adequate protections should something go wrong. Here we look at the factors that will impact the kind of protection you will need and the cover you should go for:
Why Do I Need Cover?
Although when working as a contractor you will take the utmost care to ensure a job is done properly and nothing is damaged and no one is hurt, accidents do happen. If you offer consulting or advice, such as planning advice, you will want to cover yourself against issues that may arise from recommendations you have made. Also, contractors often rely on tools that, should something go wrong, could cause serious injury; having the right cover in place will give you some peace of mind should an issue arise.
How to Minimise Risk
There a few ways as a contractor that you can minimise the risk taken when carrying out work on a job. Although it may seem obvious, make sure that you carry out work exactly as it’s been specified; this involves completing jobs within the specified timeframe, within budget and as you agreed to. Fulfilling your agreement with minimal risk is the best and easiest way to avoid issues later.
Another great way to protect yourself is to make sure that your contracts with your client and other workers are ironclad. Although a strong contract doesn’t mean accidents won’t happen or that you won’t be sued, it does help act as a strong defence.
Types of Insurance for Contractors
There are different forms of insurance that will protect you as a contractor; commercial vehicle insurance will cover you when out on the road in a vehicle you use for work – such as to carry your equipment. Another form of insurance you will need is public liability insurance which will cover damages and costs your business has had to pay as a result of damage caused by the work you’ve done.
There are also certain types of insurance tailored to specific trades, such as electrical contractors insurance; opting for this kind of cover will make sure that you’re protected in a lot of different scenarios specific to your trade.
If you are hiring employees, then you are legally required to have employers’ liability insurance which will cover you and your business should an employee fall ill or be injured while in work.
How Far Back Am I Protected?
Although certain types of insurance will only cover you from the moment it is taken out, professional indemnity insurance works slightly differently. Professional indemnity insurance will, for the most part, cover you from the moment a claim is made, regardless of when the issue itself occurred.
How Much Does Insurance Cost?
The cost of your insurance will entirely depend on the work you carry out and the size of the business you are covering. There are a lot of online sites which will give you a quote for free without requiring you to make any kind of commitment. If you are worried about the cost, a lot of insurers will allow you to make monthly payments rather than pay for the year all upfront.