Working for yourself on a self-employed basis can be very rewarding. You have the flexibility to pick and choose the assignments you work on, ensuring work revolves around your life – not the other way round. You’ll also likely receive a higher rate of pay than permanent equivalents, reflecting the fact that work is less secure.
On the flip side, self-employment doesn’t offer much of a safety net should you become sick or have a longer-term injury. You’re also responsible should something go wrong with work you have undertaken, unlike if you’re working for an employer.
Having the right insurance in place to protect you against these unlikely events is vital. Not only for your pocket but also to prevent continuous worry.
Public Liability & Professional Indemnity
Working on a self-employed basis, you’ll be working on a contract for services and will be responsible for the work you deliver; you won’t get the protections of working for an employer and your contract with your umbrella company will state these responsibilities.
You could be held responsible for giving bad advice, making a mistake during your work or just plain human error! A professional indemnity policy will protect you from any financial claim from the end-client. Equally, if you're blamed for causing injury or damage to someone's property, a public liability policy will offer protection against claims.
In many cases, public liability & professional indemnity insurance will be a pre-requisite of engaging on a self-employed basis but many recruitment agencies don’t enforce you having this policy. To avoid any future claims against you, we’d recommend speaking to Kingsbridge and taking out one of their policies.
Click here to get a tailored quote.
Income Protection
As a self-employed worker, what would happen if you were taken ill for a number of weeks? Have you thought about how you would cover your bills? Unlike employees, the self-employed aren’t eligible for Statutory Sick Pay and any inability to work results in a loss of earnings.
Income Protection insurance covers against loss of earnings due to injury or illness. It typically provides cover as a monthly benefit, usually paying 75% - 85% of your average income if you’re unable to work. It’s a great substitute for the sick pay that employees would get.
Our partner, Cleerly has a specialist division that can help set this up. Click here to get a quote.
Critical Illness cover
Unlike income protection, critical illness cover is offered as a longer-term solution for those diagnosed with, or undergoing surgery for a critical illness such as a heart-attack, cancer or Parkinson’s disease. Cleerly can help you arrange a suitable policy.
It’s designed to pay out a tax-free lump sum to help support you and your family while you deal with your diagnosis or recovery. You can focus on recovering, taking the stress out of having to worry about paying the monthly bills.
Each policy will differ in what it covers so be sure to check with our recommended provider Cleerly that the cover provided supports your needs.
Insurance for your tools
Many contractors use the end-client’s facilities to store their tools overnight. And whilst they may seem secure, many construction sites are targeted by criminals. Should you leave them on site, they are left at your own risk so you should have the correct insurance in place if this is something you do regularly.
Kingsbridge offer a fantastic package for the self-employed that not only provides up to £2500 of cover for your tools, but also provides Public Liability Insurance – for a very competitive price starting at £150/annum.
Get a quote to cover your tools here.
Life Insurance
Have you ever thought what would happen in the worst possible scenario? How would your family cope with paying the bills if you were no longer around? Life insurance cover helps ease those worries, by providing a product that pays out upon your death.
Speak to Cleerly to arrange a policy that suits your needs.
Personal accident insurance
The good news is that when you engage on your assignment through Clipper Contracting Group, you’ll automatically be covered by our personal accident insurance. This will cover you for any work-related injuries or unexpected hospital stays.
Our broker, Sutton Winson will take care of your claim and let you know if you’re covered. You can contact them on 0208 891 4021.
As with any insurance, you should ensure the policy you acquire is suitable to your needs. Make sure you read the terms and conditions and understand the level of cover provided.
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