Wednesday, March 29, 2017

Contractor Insurance - Overview

Contractor insurance is an essential element of running a contracting business and comprehensive insurance cover can mitigate the impact of events such as thefts, an investigation by HMRC or even the threat of legal action and compensation arising from client accusations of negligence.

Umbrella company contractors are normally covered by their umbrella company employer's policy, but limited company contractors must make their own arrangements to ensure they have adequate cover in place to satisfy business and client requirements.

Insurance types to consider

There are three main categories of insurance that contractors should consider:

  • Office
  • Professional indemnity
  • Tax investigation.

A comprehensive office policy would normally include public liability and employee liability, legal requirements for trading limited companies, plus home office contents and portable equipment cover for business equipment, such as laptops and mobile devices.

Professional indemnity insurance, also known as 'PI', will provide the funds to cover legal advice if a client levels accusations of negligence against a contractor, and may also cover any payouts for compensation. Most clients, particularly those in the public sector, require that a contractor limited company has at least £1m in PI cover.

Tax investigation insurance covers the cost of accountants and other expert assistance in the event of an investigation by HMRC. A routine compliance visit by an inspector may only cost a few hundreds of pounds in an accountant's time, but if the investigation develops into a full-blown IR35 case, the cost of an expert defense can run to tens of thousands of pounds, which could financially ruin a contractor who does not have insurance.

Choosing the right policies

Not every contractor's insurance needs will be the same. Some contractors may have requirements unique to their sector, or could have business premises, such as an office or workshop, that require specialist cover.

A specialist small business insurance broker will usually assess a contractor's insurance requirements as part of their service and then actively seek out the most appropriate policies for the contractor's specific needs from the market.

Alternatively, it is possible to obtain a comprehensive package of insurances directly from an insurance company, but contractors should ensure the insurer understands the contractor marketplace and has a track record in providing contractor insurance products.

Contractor insurance costs

As most policies will be individually tailored to a specific contractor's needs, each policy is priced accordingly. Buying insurance in a bundle direct from an insurer or via a broker is usually more cost effective than buying different policies direct from different suppliers.

As a rule of thumb, a comprehensive office policy costs a few hundred pounds, PI insurance from a few hundred to several thousands, depending on the amount of cover required and the type of services the contractor provides.

Tax investigation insurance comes as a benefit of PCG membership. If bought separately, it can cost a few hundred pounds a year, and compared to the potential cost of an investigation, it is generally a worthwhile investment.

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Sunday, March 26, 2017

Advice from Dummies: Smartly Saving Money On Homeowners Insurance

Crystal tells Kirk how to smartly save money on his homeowners insurance and avoid the mistake of insuring for the real estate value.

Thursday, March 23, 2017

Spring Cleaning For The Exterior Of Your Home

Each year millions of dollars in damage are caused by water damage due to poor maintenance on the outside of homes. According to the Insurance Information Institute, good home maintenance can save homeowners thousands of dollars. Jeff Sciaudone, Institute for Business and Home Safety, says you should check your gutters, downspouts and roof to be certain that they are in good condition.

For more information about insurance, go to the I.I.I. Web site at

Wednesday, March 22, 2017

Sunday, March 19, 2017

Introducing NFIB's 2017 Small Business Playbook

The 2017 Small Business Playbook brings you a better, faster, and stronger report of NFIB's efforts as well as small business advice.

Wednesday, March 15, 2017

Uninsured Motorists

This video is from the Insurance Information Institute. For more information about insurance, go to the I.I.I. Website at

Friday, March 10, 2017

Monday, March 6, 2017

Insuring Expensive Items In Your Home

Dr. Hartwig of the Insurance Information Institute ( explains how to properly insure all of your possessions. While a standard homeowners policy covers you for most things in your home, luxury goods such as fine jewelry and furs, antiques, artwork, and other expensive items need special policies. To insure these types of items, contact your insurance agent and get an umbrella policy for them.

Thursday, March 2, 2017

Fire Prevention

Elaine Nashashibi had just minutes to get out of their house when the smoke detector went off. Today she says smoke detectors are absolutely essential and should be checked regularly to be sure they are in good working order. Fire education expert Mary Marchone says the more smoke detectors you have in your home the more likely you will be able to escape a fire. According to the U.S. Fire Administration is that people are not taking proper care of battery operated smoke detectors which means many people think they are protected when they are not. The biggest mistake occurs when a homeowner removes a dead battery then fails to replace it for days, weeks or months.

For more information about insurance, go to the I.I.I. Web site at