As a contractor, you may lose money if you don’t have the right insurance. In some industries having the right insurance is a condition of getting a contract. Here’s where you can find out how to protect yourself.
What insurance you’ll need depends on the industry you’re in and what you do. Talk to an insurance broker about what best suits your situation. Here are some of the types of insurance you might ask about.
This protects you if someone sues you or one of your employees for damaging their property or reputation. It also covers you if you:
This kind of insurance is important if you’re in an advisory role, like a consultant. It’s also a good idea if you have the potential to damage other people’s buildings, equipment or belongings, for example, when you are a tenant or a cleaner or a painter and decorator.
There are a variety of liability policies available. The type of policy that will suit you depends on the type of work you do.
Generally, liability policies will cover you for:
This covers you for financial losses if you can’t trade after a natural disaster, for example a fire, flood or other insured event. It can also cover you for extra costs that you might face to keep your business operating after a natural disaster.
Commercial building insurance covers you for damage to buildings you own, for example, from fire, flood, earthquake or other insured event. Note: If your home is used for commercial purposes, your home and contents insurance might not cover you. You should check your home and contents policy if you’re using your home for work.
Asset insurance protects items you own and use for contracting, for example, tools, equipment, computers, furniture and stock, from things such as theft and accidental damage. Make sure you know what your policy covers. There are two main types of claim settlements available:
If you use a vehicle for work you may need a commercial vehicle insurance policy.
Computer hacks can result in lost customer data, such as your list of debtors and private information. Cyber insurance will cover costs connected with restoring information, using external IT experts to help you with recovery, replacing hacked computers, lost income while your business cannot operate and your financial liability to your customer.
This covers you if equipment or stock is damaged when you or a freight company is moving it.