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Protecting Yourself as a Contractor: Do You Have the Right Insurance Cover?

Contractors are vital to the British economy, contributing over £278 billion in GDP across sectors like construction, transport and more. With over 4 million contractors in the UK, it's a diverse group with unique insurance needs. As a self-employed professional, you're liable for any mistakes, so having the right insurance is critical.

But what policies do contractors really need? The answer depends on your particular profession and how you work. Let's explore some common contractor insurance options so you can make sure you've got yourself covered.

Key Contractor Insurance Policies

Professional Indemnity Insurance

This policy is essential for any contractor offering professional services. It covers you if a client claims you were negligent, gave bad advice or made a mistake that caused them financial loss. Even baseless claims need legal defence, which professional indemnity insurance pays for.

Public Liability Insurance

If a client or contact gets injured while visiting you or your team is working off-site, public liability has you covered. It pays for their legal fees and compensation if you're deemed at fault for an accident.

Cyber Insurance

For IT pros, virtual assistants and other contractors handling sensitive client data, cyber cover is critical. It pays legal fees if you're hit with a data breach and helps get systems back up after an attack.

Equipment Insurance

If you rely on laptops, specialty gear or other expensive equipment for your contracting work, consider a policy to cover theft, damage, or loss. It keeps you working if your tools take a hit.

Specialty Contractor Policies

Certain contractor occupations like transportation may need tailored niche policies an average insurer can't provide. Do your research to ensure specific risks in your field are covered.

The Dangers of Going Without Insurance

Thinking you can skip out on contractor insurance to save money? Consider the massive liability you take on:

  • A single negligence lawsuit from a client could bankrupt your business overnight.

  • Cyber attacks and data breaches put you on the hook for massive regulatory fines.

  • Replacing specialised equipment due to damage or theft can equal years of hard work down the drain.

The risks aren't worth it. The right insurance package, tailored for your contracting occupation, lets you sleep easy and focus on what matters most - doing great work.

Unsure what covers are mandatory or recommended for your type of contracting? Consult an insurance provider like Keep Insurance Brokers that specialise insuring contractors to review your unique risks. Taking the time to understand your options goes a long way towards avoiding catastrophe down the road.

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