Contracting insurance question

Maundie · 7 Nov 2016 at 11:07

Hi all,

Looking at jumping companies for a 12 month contract when my current one ends 17th Feb (be good to walk out of 1 straight into another) but they've asked for the following:-

· Employers Liability Insurance
· Public Liability Insurance
· Professional Indemnity Insurance

Now I've never had any of these or been asked for them, can anyone suggest any decent companies who offer these for IT contractors?

Mujja · 7 Nov 2016 at 11:22

I was only asked for proof of insurance in the last of 10 years of contracting. I picked the cheapest quote from here.

Majority of the contractors I worked with didn't have any insurance and none of agencies or clients asked for it until my final contract.

welshboy · 7 Nov 2016 at 11:36

i do mine through hiscox.

roughly £170/yr, but you get £80ish via quidco

Maundie · 7 Nov 2016 at 11:55

Thanks guys, just checked Hiscox and it's come back at nearly £300 for the year, I'll check out Quidco as well.

peterwalkley · 7 Nov 2016 at 11:56

Might be wrong as its a long time since I contracted, but it used to be the case that having these also helps when it comes to arguing you don't fall under IR35. Employees don't have these insurances, businesses do.

ChrisD. · 7 Nov 2016 at 13:18

Hiscox were very expensive for me so I went with QDOS who were much cheaper.

Maundie · 7 Nov 2016 at 14:25

Dooksy said:
Hiscox were very expensive for me so I went with QDOS who were much cheaper.

Just checked QDOS and they're virtually the same price as Hiscox, but thanks for the heads up.

I'm not taking the insurance yet so any more tips or places to call would definitely be most welcome.

ChrisD. · 7 Nov 2016 at 14:28

The types of insurance you need are on comparison sites now under business.

Maundie · 14 Nov 2016 at 21:19

Done a load of quotes and not sure why I would need Employers Liability Insurance as it's only me as a limited company.

Also if I was to go with Hiscox and get £80 back from Quidco is there a tax implication as I would pay the insurance from my business acount but get the Quidco cashback into my personal account (or Amazon credit)?

ChrisD. · 15 Nov 2016 at 08:48

You will need Employers Liability as it will most likely be in the T&C's of your contract.

Cashback is something you should ask your accountant about.

jimjamuk · 18 Nov 2016 at 13:22

Yes this is something you need and should have. Was asked at every contract and was normally told they expected to see 1M and 10M or cover on those in the places I worked

It covers you for all sorts and to be honest £300 for a year isn't a lot for what it does and its an expense. As said above businesses have insurance - employees don't so its a IR35 helper and also covers you should you make a mistake a break something. Not heard of many contractors being sued for damages for work that has gone wrong but it could happen and if it does it'll be in the £000's they wlll try to recover. Otherwise something simple like someone tripping over your bag could also trigger it

Maundie · 18 Nov 2016 at 13:58

Bit the bullet and got it, Direct Line however were really cheap at £205 against Hiscox £300 for same cover, as said paid out of the company so not actually out of my pocket.