If you’re going to go into business with your own IT Contractor Limited Company the chances are that you will be contractually required to hold sufficient Professional Insurance with a reputable provider. Please note that if you use an Umbrella Company you will be covered by the Umbrella’s policy.
It is important to have in place satisfactory insurance policies just in case you encounter problems down the line. IT Contractors running their own Limited Companies are normally required to have in place;
- Professional Indemnity Insurance, AND
- Employers Liability Insurance, AND
- Public Liability Insurance
If you are a highly skilled professional and you are considering going into business with your own Contractor Limited Company Commonwealth Contractors can help. We partner with Chartered Accountants who specialise in contractor accounts and can help to maximise your net contract retention.
To speak to an experienced advisor call Commonwealth Contractors now on 0800 294 4388 or Submit your Details and we will get right back to you!
Professional Indemnity Insurance
Professional Indemnity Insurance protects your against claims from previous clients where you make mistakes or are found to have been negligent in some or all of the services you provide. Professional Indemnity Insurance policies generally cover;
- Intellectual Property (IP) Infringements
- Loss of Data / Documents
Please note that Professional Indemnity policies are normally designed on a ‘claims made basis’ which means than insurers will only cover claims while the policy is live. Therefore if you cancel the cover it is important to arrange a ‘run-off’ period in order to protect yourself against claims made by an old client.
Employers Liability Insurance
Employers Liability Insurance covers you against the cost of damages and legal fees in respect of employees who get injured or fall ill while at work through fault of the employer.
By law an employer must have Employers Liability cover for at least £5 million. However, if you run a ‘one man’ Contractor Limited Company and you own at least 50% of the issued share capital in the company you are exempt from having to take out mandatory cover.
Public Liability Insurance
Public Liability Insurance protects you against claims made by members of the public in respect of injury or damage to their property caused by you or your business. It also covers any related; legal fees, expenses, hospital treatments etc
Find out More
To find out more about Commonwealth Contractors call now on 0800 294 4388 or Submit your Details and we will get right back to you!