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Over the years, a lot of changes, including changes in legislation and amendments in contracts, have made insurance a requirement to protect the interest of not just organizations but also contractors. If you’re a contractor, you know how risky your job could be. You could be blamed for a small malfunction, as a result of which you could face an expensive lawsuit. Also, as a small trader, you know that accidents are not totally avoidable. In order to protect yourself, your client and your business from uncertainty, consider purchasing contractor insurance from a dependable insurance agent.

How to choose the right insurance company?

As a contractor, it would be ideal to look for a professional insurance advisor, as they will be able to advise you on choosing the right policy, keeping your requirements in mind. You can even have your policies tailored to suit your business needs. Look for an insurance agency with many years of experience in the business. Make sure they’re licensed and have a great team of advisors, consultants and experts. There are many companies that provide cost-effective options. Browse the web to find suitable companies, check their ratings, and select the one with whom you’re comfortable to deal with. You can buy insurance from an agent or from a company. Furthermore, there are many websites that provide instant quotes. There will be a form provided with  questions about your business in order to understand your job profile, how many people you need coverage for and your company’s turnover details.

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Types of contractor insurance

Following are the common types of contractor insurance you can consider. You can contact a reputable insurance agent to help you understand how each insurance type will help your business, and choose which one is the most appropriate one for your entity.

General liability insurance

This type of insurance covers workers’ injuries and property damage. This policy can help you if you’re dealing with any lawsuits related to any of the projects you’re undertaking while in service. The General liability insurance protects your assets, help you handle accident-related and other unprecedented expenses at ease, and protects your employees and your business from uncertainty.

Errors and omissions insurance

The errors and omissions insurance, also called professional indemnity insurance, provides coverage for business risks. If your client is not satisfied with your work or if your work has resulted in financial losses for the client, this coverage can protect you against your clients’ claims. Small contractors such as electricians, plumbers, painters, carpenters, air conditioning installation experts usually opt for this insurance. There are many renowned consultants such as Qdos Contractor insurance to protect you against the cost of defending claims.

Workers’ compensation insurance

No matter how good the health and safety policies are of a company, contractors such as builders and construction workers are aware that they’re subjected to risks at work. Workers compensation insurance covers the medical expenses related to work-related injuries, accidents, illnesses etc. In case a worker is killed on the job, the insurance also pays out benefits to the families of the deceased.

Public liability insurance

If you’re working on a client’s site, and a claim is made against you for damage of the client’s equipment, machines or property, this insurance can protect you. This insurance can be used to defend you in lawsuits or to pay the cost of the damage.

Employers’ liability insurance

This insurance protects employers if an employee brings a claim against them for a job-related injury or disease. Sold by many agents along with the Public liability insurance, it is applicable for businesses with more than one employee.

Commercial crime policy

This type of insurance provides many types of crime coverage including coverage against employee dishonesty, forgery, theft, computer fraud, extortion etc. The policy can be generally personalized to suit your business needs.

IR35 review

As well as insurance, you need to know if you are considered as a ‘disguised employer’ by the HMRC. IR35 is a set of tax rules implemented in order to get rid of the problem of tax avoidance. It’s applicable for UK contractors who do not pay their taxes, as they work for a client through an intermediary. If you’re caught by HMRC, you’ll be liable to pay more taxes. If you want to find out more about IR35 rules or if you’re looking for a full IR35 contract review, you can hire an experienced tax consultant. There are companies which provide both tax advice and insurance coverage.

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