What insurances do I require as a professional freelancer or contractor?
- Detailed guide to help you understand your risk exposures
- Risks you could be exposed to
- Choosing the right policy for you
- Advice you can trust
Contents
- Do I really need insurance as a professional freelancer or contractor?
- What risks am I exposed to as a freelancer or contractor?
- There are so many policies out there - how do I choose the right one for me?
- What is professional indemnity?
- What is directors' and officers' liability?
- What is personal accident cover?
- What is employers' liability?
- What is public liability?
- Who can I contact if I would like more information?
Do I really need insurance?
For some, there is a legal requirement to hold insurance. The employers' liability legislation requires all employers to provide legal liability cover for their employees as they could suffer injury as a result of their activities. This rule has limited exceptions in law, however a limited company employing only its director, who also owns 50% or more of the share capital is exempt from employers' liability legislation. If this applies to you then the law does not require you to hold any insurance, but any prudent individual would normally choose to protect themselves from liability which might arise as a result of their business activities.
In a vast majority of cases, contract conditions will insist that you hold certain insurance cover, usually employers' liability, public liability and professional indemnity. Failure to provide this cover could lead to breach of contract. Many clients and agencies insist on proof of your cover arrangements.
At Kingsbridge Professional Solutions we have designed our core product to suit the requirements of freelance professionals. It has been developed to include cover for all the main exposures which affect your business. You don't need to choose specific elements of cover as they have been carefully selected to complement your business. You only need to check that the limits provided meet the requirements of your contract.
A quick checklist of risk exposures
- Do I give professional advice?
- Will I get paid if I am injured at work?
- Do I employ my spouse?
- Do I visit clients' premises?
- Do my clients visit me?
- Do I have legal duties operating a limited company?
- Do I need funds to defend against any actions made against me; even unfounded ones?
Benefits of the Kingsbridge policy
- Costs less than £36 per month
- Is quick and easy to buy online
- Has comprehensive policy limits
- Is a key IR35 compliance indicator
- Helps meet your contractual obligations
- Covers an extensive range of professional occupations
- Is a simple package at a market leading price
There are so many policies out there - how do I choose the right one for me?
As a freelance contractor or consultant there are a number of different insurance products that you can purchase, but deciding what you need can be difficult With an extensive knowledge of the freelance industry, Kingsbridge Professional Solutions have put together a cost effective package to meet the main exposures you or your business could face.
By carefully selecting cover appropriate for you we have removed the complication of picking cover and limits to purchase separately. You simply buy one policy which includes the following cover:
- Professional Indemnity £1 million
- Public Liability £5 million
- Employers' Liability £10 million
- Personal Accident - weekly benefit £500
- Personal Accident - death benefit £100,000
- Directors and Officers Liability £100,000
The following outlines each of the main covers that you should consider as a professional freelance contractor or consultant...
What is Professional Indemnity?
As a professional, the design, advice or specification you provide in the course of your business will be relied upon by others. Professional indemnity insurance covers you against any errors you make or bad advice which you give leading to financial loss from those relying on your advice.
Why do I need it?
It provides protection for claims made against you as a result of allegations of professional negligence. Cover includes legal defence costs and any damages awarded. Claims for negligence can be made against any company providing professional services.
What do I need to look out for when buying professional indemnity?
Cover is provided on a claims made basis. Effectively cover needs to be in force at the time the claim is brought against you, so we advise that professional indemnity is a long term commitment. It should not be purchased just whilst you are on assignment or contract as the cover ends as soon as you cancel the policy or it lapses.
We will only ever give the best advice possible. As a freelance contractor you should maintain professional indemnity cover for as long as you are in business. Do not be tempted by short term policies which won't protect you when you need it.
What is directors and officers liability?
Directors and officers liability insurance provides financial protection for you as the director of your company in the event you are sued in conjunction with the performance of your duties as they relate to the company.
Why do I need it?
As a director you have numerous responsibilities for which you can be held personally liable; this cover will provide for legal defence costs to protect your financial assets.
What do I need to look out for when buying directors and officers liability cover?
Like professional indemnity cover, directors and officers liability is provided on a claims made basis, so you need a policy in force at all times and not just for contract periods.
What is personal accident cover?
If you are injured as a result of an occupational accident and are unable to work, then you are likely to suffer financial loss. Your employment status means you will more than likely have no other person to hold responsible.
Why do I need it?
Regardless of blame, personal accident cover will pay you a weekly benefit whilst you recover from your injury. In addition lump sum payments are payable for death or permanent disability resulting from an occupational accident.
What do I need to look out for when buying personal accident cover?
Check the period at the start of any loss where no benefit will be paid, commonly known as the benefit excess or deferment period. Our cover is effective from fourteen days after the accident, much sooner than some policies.
What is employers' liability?
Employers' liability provides protection against claims from employees for legal liability in respect of injury or disease which arise in the course of their work and for which you are deemed to be responsible. Employers' liability insurance is a compulsory insurance for all employers with limited exceptions in law.
Why do I need it?
Most clients and agencies do not understand the legal exceptions to the legislation and many contracts are drawn up without regard for the true legal requirements. To assist our policyholders in achieving compliance with contractual obligations, employers' liability cover appears on our schedule. Please note, those who are not exempt from the legislation must ensure that they hold an employers' liability certificate to comply with the law. Always contact your broker for advice.
What do I need to look out for when buying employers' liability?
The minimum limit for employers' liability cover is £5 million, although most policies will give £10 million as standard. If you are asked to provide higher limits, then you should challenge this, as this would only be relevant to a large employer.
What is public liability?
Public liability provides protection against claims for legal liability in respect of accidental bodily injury to third parties or damage to third party property arising in the course of your normal business activities.
Why do I need it?
Whether you are on your own premises or at a clients' site, you have a duty to protect anyone who might be affected by your activities. If you fail in this duty and someone is injured, or property is damaged as a result of your actions then you could become legally liable to them for compensation.
Who can I contact if I would like more information?
You are already visiting www.KPSol.co.uk - this is our first stop for more information.
If you can't find what you need on this website or for specific enquiries, please use our ringback form, email info@KPSol.co.uk or speak to a member of our team on 0845 643 0061.
