Public & Employers Liability Insurance – a contractor’s guide

Public & Employers Liability Insurance – a contractor’s guide

There are two business insurances that all independent freelancers should consider having; Public Liability Insurance and Employer’s Liability Insurance.

Public Liability Insurance covers your company against death or injury to a third party or damage to third party property as a result of negligence by you or your employees. It also covers the cost of any third party costs and expenses arising as a result of any such incident. It will also extend to any temporary employees working on your premises. It is not compulsory, but depending on your circumstances you may find it advisable, especially if you routinely have visitors to your business premises.

Employers Liability Insurance is compulsory if you have one or more employee of any kind, unless you are the only employee of your company and own more than 50% of the shares in it. It covers you against the death of or injury to any of your employees and extends to the costs of claimant’s costs and expenses. It will also be extended to cover any temporary staff you may have at any one time. Although a one-man business may not need it, you need to be aware that it may become compulsory if you sub-contract work to someone, who would then be in scope of the requirement.

Having such insurances is only a minor indicator that you are in business on your own account, but every little helps. Also note that either or both may not be needed but may still be required as a condition of your contract.

Both policies’ costs will vary according to various factors, so it will pay to shop around. Many insurers will offer a package of these two plus Professional Indemnity Insurance, which may save some money on the premiums.

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Image: Hard Hats by OregonDOT

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