Freelancer Insurances

There is so much information on what insurances you will need as a freelancer and so many different types of insurance that it can often be a challenge trying to work out exactly what you need, why you need it and how much it costs.

Whether you are a freelancer working from home, a clients site or occasionally overseas, we offer a superb range of insurance products to suit all your needs, through the UK's leading freelancer insurance broker Caunce O'Hara. If you already know what insurances you need then you can get an instant quote online.  Below is a summary all of the different types of insurance you need to consider.

PROFESSIONAL INDEMNITY INSURANCE

Professional Indemnity Insurance protects you from claims by your clients and covers you for:

These claims could result in your business being damaged, not just financially but also by a loss of reputation.  Even the most reputable organisations can find themselves in dispute with a client over mistakes such as negligence, loss of data and accidental violation of copyrights/trademarks.

The chance of a claim may be small, but coupled with the potential size of a claim, the risk is substantial!

As a limited company you are usually required under contract to have Professional Indemnity Insurance and clients are increasingly asking to see proof of this.  As a sole trader it is not a legal requirement, however having this insurance gives you financial protection.

It is therefore important to make sure you select a level of cover that will guarantee as much as possible that your insurance will be enough to pay both of the above if a claim was made against you. To work out what level would best suit you, you need to look at the:

Think of the worst case scenario because essentially that is what you are insuring yourself against.

BUSINESS COMBINED POLICY

Caunce O'Hara offer a business combined policy which includes:

EMPLOYERS LIABILITY INSURANCE

This insures your company if an employee makes a claim for compensation against you, as their employer, over illness or injury as a result of their work.  Employers Liability Insurance covers you for the costs of defending the claim as well as any potential compensation to the employee.

Whether you are a sole trader or limited company, if you employ seasonal or part time staff at any time (whether paid or voluntary) then you must take out this insurance.  Without it the employee can still sue and you will have to fund the claim from your own resources.

Another reason it is suggested to take out this insurance, particularly if you are a limited company, is due to the fact that many contracts carry a substitution clause which cannot be met without having this insurance.

PUBLIC LIABILITY INSURANCE

Public/Business Liability Insurance provides financial protection against claims made by members of the public due to injury as a result of you or your Company.

It will also cover you if you damage third party property whilst on business.  For example, if whilst at a customer site you spill a cup of tea over your client’s computer, resulting in it being damaged, then public liability insurance will cover any resultant claims from the customer.

Although not compulsory, if members of the public come to your site, or you go to theirs, you should consider this insurance.  It covers legal fees, costs and expenses.  The level of insurance required will depend upon the nature of your business; generally cover is between £1 million to £5 million.

OFFICE CONTENTS COVER

Office Contents Cover will cover your office contents from risks such as theft, fire and water damage, whether you work in an office or from home. Contents covered include:

BUSINESS EQUIPMENT COVER

Business Equipment Cover will insure your Portable Electronic Equipment (from £1,000 up to £5,000) when away from your usual place of work e.g. if you are based at a client’s site. Equipment covered includes (but is not limited to):

If you choose to take out Business Equipment Cover then you are covered for accidental damage, loss and theft and you can choose cover that protects your equipment if you work abroad.

BUSINESS INTERRUPTION

If any of your items insured under Office Contents Cover or Business Equipment Cover are damaged and you need to hire temporary equipment then this covers you for any expenses incurred.  This will only cover you though if you can prove that by not hiring replacement equipment you would have suffered a loss of revenue.

MANUAL LABOUR COVER

This cover is for contractors or freelancers who are involved in manual work as part of your contracts e.g. building, drilling etc.

PERSONAL ACCIDENT, SICKNESS AND TRAVEL

As a freelancer your income is totally dependent on your ability to show up every day. You lack the employer safety net of 'sick pay' that is enjoyed by permanent staff. Personal Accident and Sickness Insurance pays a weekly cash benefit to a person who is unable to work as a result of an accident or sickness-so mortgages and other bills can still be paid. A lump sum may also be payable on death or specified disabilities.

If you take out this insurance through Caune O’Hara it incorporates cover for business and holiday travel worldwide in any one year for you and your family.

LEGAL AND PROFESSIONAL EXPENSES COVER

 This policy provides cover for the growing number of TAX, VAT, PAYE, IR35 & section 660 investigations conducted by HM Revenue & Customs as well as providing debt recovery against an agency, client or umbrella company that fails to pay an invoice. Included in this cover is 24 hour access to a nationwide group of solicitors.

HEALTH AND SAFETY

If you are a freelancer who employs staff or sub-contractors you have a legal responsibility for their health and safety. Our Health & Safety Policy helps you implement a safe workplace, tailored to your company and reduces the risk of Health & Safety incidents.

For more information on any of the above insurances please contact us on 0500 234111 / 01442 275767 or email nikki.hanlon@easyaccountancy.co.uk You can also get a free quote online.

If you wish to find out more about freelancing as a sole trader then you may also be interested in the following pages:

Easy Accountancy

Easy Accountancy is the UK’s only national specialist accountancy firm for freelancers, sole traders and small businesses

If you’ve just started out as a freelancer or run a small business, you’ll definitely need a small accountant and there are plenty of options out there! However, most accountants will charge you every time you get in touch with them; for every phone call, email or meeting.

We don’t want our clients to be scared to contact us and potentially lose out on valuable tax saving advice. It's even more important when you first start out as you really need to set your business up in the best way possible. As a start up you’ll probably have loads of questions and will really appreciate the fact you can call your accountant as many times as you like without the fear of racking up large bills.

Our low cost, all-inclusive fixed-fee accountancy service includes unlimited access to your own accountant throughout the year, so you never need to worry about picking up the phone and then receiving a bill afterwards for the privilege, and covers all your business and personal tax affairs needs. All clients additionally receive: 

We’ve saved our clients up to half on their accountancy bills – if you’d like a quote, click on the quote me button to the right of this page. 

We also have a money-back service guarantee - all of your telephone calls and emails will be answered on the same day, or we will refund your monthly fee (another first within the accountancy world).

To appoint us as your accountants, please fill in our Client Agreement Form online.

If you are a contractor working through a limited company then visit SJD Accountancy (our sister company) who specialise in providing tax advice and accountancy services for Limited Company contractors.

For more information or a general chat about your business plans please Ask us a question, call us on 0500 234111 / 01442 275767 or email nikki.hanlon@easyaccountancy.co.uk

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