Contractor insurance is a business insurance that comes in all shapes and sizes. From protecting workers and hard assets, to reducing risks caused by bad weather, late deliveries, loss of earnings, and planning errors, the specific types and amounts of insurance contractors need varies according to the nature of the work they are undertaking and their contractual obligations.
Important contractor insurance includes:
Public Liability Insurance
Public Liability Insurance protects your business if someone is injured, or their property is damaged because of the services that you or your business provides. This type of cover, also known as PL or Liability Insurance, is designed to protect contractors against third party claims for injuries or property damage from a customer or client, passer-by, or a visitor to your business premises – including building sites – whether you’re at fault or not.
Professional Indemnity Insurance
Professional Indemnity Insurance, also known as Professional Liability Insurance, is an essential type of cover for businesses that advise clients, help them navigate complex financial or legal affairs, or provide them with vital information that is published in the media. In these kind of cases, errors can cost thousands or even millions in legal compensation claims. Professional Indemnity (PI) can protect you if a client makes a financial loss because of your work and then makes claim against your business. Trade associations, government bodies, public institutions, and major customers will often require proof of a minimum level of PI insurance before contracting business out to you.
Employers’ Liability Insurance
Under the Employers Liability Act of 1969, Employers’ Liability Insurance (ELI) is a legal requirement for most UK employers. ELI protects you and your employees, (including those who no longer work for you), should they be injured or become unwell as a result of working for your business. ELI typically covers the associated legal and compensation costs, and other damages of such events, but it can also cover accidental injury or damages caused by an employee to a third party, like your customers.
Portable Equipment Cover
Portable Equipment Cover protects the machinery and equipment you take from job to job. This includes things like tools, generators, lighting rigs, tech devices, ladders, and testing equipment. The portable nature of these essential items makes them more prone to loss, theft, damage, and accident, and their replacement can often be expensive.