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 the 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 an employee for damaging their property or reputation. It also covers you if — without meaning to — you:
This kind of insurance is important if you’re in an advisory role, eg a consultant. It’s also a good idea if you have the potential to damage other people’s buildings, equipment or belongings, eg a cleaner or a painter and decorator.
Policies differ, but they generally cover you for:
This covers you for losses if you can’t trade after a disaster, eg a fire or an earthquake.
This covers you for damage to buildings you own, eg from fire, flooding or earthquake. Note: If you work from home, household insurance does not cover your property if you’re using it for work.
This protects items you own and use for contracting, eg computers, furniture, tools and stock, from things like theft and damage. Make sure you know what your policy covers you for. There are two main types:
If you use a vehicle for work you may need a commercial vehicle insurance policy.
This covers you if equipment or stock is damaged when you or a freight company is moving it.