Business Insurance is a necessity of everyday life, be it be house, car, life or even mobile phone cover. In business, this is no exception but it is often overlooked as an essential service for every company offering services. Although not a legal requirement, there are compelling reasons as to why you should take out insurance cover regardless.
What types of insurance to consider
Professional indemnity insurance
This insurance will cover you for negligence, loss or damage to client data and any claims made against you by a client as a result of work that you have done for them. If you are providing any type of service to a client, this insurance is a must.
Public liability insurance
This covers you against claims from third parties when property is damaged through the course of you doing your work.
Employers’ liability insurance
If any of the company’s employees become ill or are injured whilst at work, due to negligence of the employer, this insurance will cover such claims. If the company has more than one employee, the cover is a legal requirement. However, as a sole director with a shareholding of over 50%, this is not a legal obligation. You may find that this insurance is included as part of a package in any case.
Tax investigation insurance
This will cover the costs of professional representation if HMRC investigates you or your company. Essentially, if you have an accountant, you will not generally be liable for further costs in discussing matters and providing HMRC with any information.
Why bother with Business insurance?
Although these insurances are not a legal requirement, you may find that it is a stipulation of accepting the contract terms with your agency or client. Even if it’s not contractual, there are other reasons that you may want to consider.
Won’t break the bank
Premiums for these insurances can come in a bundle, meaning the prices are competitive. So for a relatively small monthly payment each month, it gives you the peace of mind of being covered should you need it.
Having sufficient insurance cover is now seen as best practice by agencies, clients and other service providers.
Although not one of the three main clauses with regards to your contract being deemed outside of IR35, having insurance in place is seen as an indicator of being outside IR35 according to employment status experts.
If you want insurance….
Clever Accounts has a premium package which includes all the insurances listed above. We make it straightforward, so you just pay us one monthly fee! If you would like us to arrange the insurance for you, please let your dedicated accountant know and we will get this arranged for you.