Insurance for contractors is one of those necessities that we would rather do without. Whether you require business insurance as a contractual obligation or you want to take out some additional cover in case of accident or sickness, putting insurance in place for your business is hardly at the top of everyone’s wish list. This being said, having the right insurance in place for your business can prove to be invaluable, and let’s discuss why.
Contractor insurance comes in many forms, and we have assisted Ltd Company professionals over the years set up and take out many different types of business insurance policies for their Ltd Company. We have worked alongside Qdos Contractor for many years facilitating and providing business and tax insurances at a competitive cost. We include the common business insurances as part of our Assured Plus package, and these are Professional Indemnity Insurance, Public Liability Insurance and Employers Liability Insurance. Professional Indemnity Insurance covers the policyholder in the event that they are sued by a client if an error resulting in financial loss has occurred as a result of their omission or negligence. Public Liability Insurance provides cover in the event of damage or accident being caused to members of the public by the contractor, and a claim is made against the Ltd Company. Employers Liability Insurance covers the policyholder against claims being made by company employees. These core business insurances are the most common insurance policies stipulated as mandatory when taking out a Ltd Company contract. Although the event of these insurances actually being required is very slim, most agencies/end clients insist that these insurances are put in place as a minimum requirement to ensure that the contractors they assign to contracts are covered.
Insurance in many cases is an optional commodity taken out by contractors, and a common example of this is protection covering the cost and representation of an investigation by HMRC. The Revenue target contractors operating via personal service companies to ensure that they are doing so compliantly, and via a piece of legislation called IR35 aim to make sure that all contractors are paying sufficient tax and are not operating as ‘disguised employees’. A ‘disguised employee’ is an individual operating via a Ltd Company thus benefiting from the perks of being a contractor (salary/dividend structure, travel & subsistence expenses etc.) but is also being treated in a way similar to an employee. As a result of IR35, being subject to an HMRC investigation can be a very costly process, and because of this insurance against IR35 enquiries has become popular.
If you are interested in taking out any business or tax insurance policies then you can do so via this link to the Qdos Contractor insurance shop, or alternatively, our Assured IR35 and Assured Plus packages include a suite of contractor insurances.
There are numerous types of insurance policies tailored specifically to the needs of a Ltd Company contractor, covering various outcomes that are unique to a professional operating via a PSC. Benefits such as sick pay, paid jury duty, death in service and critical illness cover are benefits enjoyed only by employed professionals, and as a self-employed individual, contractors must take out these insurances themselves in order to be covered. There are many options for contractors to take out insurances such as these for their Ltd Companies, and as your accountant, we can point you in the right direction of some of the leading industry providers.
If you have any questions about insurance and the options available to you, please feel free to give our team a call.
Further Economic Support
On Sunday 31st October 2020 the Government announced a number of updates to existing economic support measures. The full details of these measures are reported HERE (https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced ).
Updates to the Job Support Scheme
The Government has published detailed information about the scheme HERE (https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme )
Accounting for Limited Company Property Investments
It can be a complex decision for clients when it comes to determining how best to utilise existing Contractor Limited Company funds in a Property Investment Company