Liability insurance for contractors

Contractors come in many shapes and sizes, from IT experts to marketing gurus. But whatever industry you work in, the job comes with risks.

That’s because, as with any business, things don’t always go to plan. And if you somehow cause an accident, or your temporary boss questions the quality of your work, you’ll need something to fall back on.

That’s where contractor insurance comes in. It pays your legal and compensation costs if someone sues you and helps cushion the blow if a contract turns sour.

Not forgetting that some employers will want upfront proof you’re insured before hiring you. And it’ll boost your standing as a legitimate stand-alone business.

Win-win, then.

What contractors’ insurance do I need?

Professional indemnity insurance

Mistakes happen. But if you muck up, give bad advice, or there's a misunderstanding your client says has cost them money, they can claim against you for their loss.

Allegations like these – whether justified or not – take time, money, and legal expertise to sort out. And if, like most people, you’re short on any of them (or maybe all three), contractors’ professional indemnity insurance can help.

It pays for a legal expert to fight your corner, picks up court costs and covers any compensation you might owe too. Job done.

Public liability insurance

When you’re out and about working, the chances are you’ll come into contact with others. And because you’re a contractor rather than an employee, it makes you liable if there's an accident, and it's your fault that someone gets hurt, or something's damaged.

Imagine a client trips over your electrical lead and has to be off work for weeks to recover. Or you accidentally spill a drink over their laptop at a progress meeting. They'll want compensation, and you'll have to pay.

Public liability insurance for contractors protects your bank balance. It pays your legal costs and any compensation due. Sorted.

Cyber insurance

If you use email, have a website or store customer data electronically, you’re a target for cybercriminals.

Cyber insurance helps keep you one step ahead. It brings in the experts to stop a cyber-attack. It also covers damage limitation and any tech investigation required. Plus it compensates lost earnings and provides legal back-up for data breaches.

You can’t always stop a cyber attack from happening, but you can be prepared and make sure it doesn’t decimate your business.

Portable equipment insurance

Your kit and tech are the tools of your trade. That’s true whether its specialist equipment for your particular line of work, or the things we all carry around, like laptops and phones.

Damaged, lost or stolen gear isn’t just inconvenient and expensive – it could scupper a deadline too. And missed deadlines = unhappy clients. Maybe even disappearing business once word gets round.

Portable equipment insurance helps if something goes missing or gets broken. It covers repairs and replacement of your equipment as new and helps keep you working.