Insurance Requirements

There are a number of important insurance considerations whilst providing your services as a contractor. As a contractor you provide professional advice which is relied upon by clients. This means if you make a mistake in your work you have a direct financial responsibility to your client for the errors. Whilst you may consider the possibility remote, research shows that clients are becoming more litigious.
 
Many of our clients are insisting on evidence of professional indemnity insurance and having this protection will prove to our clients that you are professional in your approach and will help in obtaining future work. These policies are reasonably priced and will also provide peace of mind. 
 
Professional Indemnity 
Professional Indemnity provides financial protection for your company and is designed to meet the cost of defending claims made against you, including damages that may become payable. Claims can occur where a client suffers a financial loss as a result of alleged mistakes or omissions on your part. In order to fulfill a contract for Bid Solutions, you must have no less than £1 million professional indemnity cover. 
 
Public liability 
A Public Liability policy will protect you against your legal liability where you accidentally cause damage or loss to someone else's property. Also, if you accidentally cause injury to someone whilst working at a clients premises. In order to fulfill a contract for Bid Solutions, you must have no less than £5 million public liability cover.
 
Employers liability 
Employers Liability insurance is arranged to protect employers against claims for injury or illness brought by employees. Employers' Liability (Compulsory Insurance) Act 1998 requires that employers maintain cover to a minimum of 5,000,000 in respect of such claims. Many contractors don't take out this type of policy but it is a statutory requirement all the same. Most insurers provide £10m cover as standard. In order to fulfill a contract for Bid Solutions, you must have no less than £5 million employers liability cover.
 
Tax & VAT investigation insurance 
Protects you in the event of an investigation by the tax authorities - more and more contractors are investing in this type of policy in light of IR35 and the complications it may bring.
 
Home Office / Equipment insurance 
Since more and more contractors are working from home, these types of policies are intended to cover the loss or damage to equipment, premises, documents in the event of theft, accidental damage or any other unforeseen circumstances.