Independent Contractor Insurance: Information, Explanations & Resources

Independent Contractor Insurance
The Essentials

Introduction to Independent Contractor Insurance

Despite your skills, experience and best endeavours it is always possible that something can go wrong. As with any commercial venture, there are a number of risks inherent to operating as an independent consultant or contractor.

It is important to identify and evaluate the key risks that you will be taking as an independent consultant. For each of these risks you need to determine whether it is compulsory for you to purchase Insurance to provide protection or whether Insurance cover is optional.

One response to reduce your exposure to loss is to purchase Insurance which in the event of an accident or claim against you would either remove or reduce the adverse financial consequences.

Set out on this page and the pages linked below is some basic information to assist you with understanding the key risks associated with operating as an independent consultant or contractor. In addition I have provided information on the insurance products that directly relate to each risk.

Some aspects of risk and the corresponding insurance requirements are quite complex. Therefore, you should seek expert advice from an appropriately qualified independent professional as you work through the process of understanding the risk profile of your own consulting practice and identifying the most appropriate responses to each risk.

Types of cover

Set out below are lists (presented in alphabetical order) of the different types of Insurance that may be appropriate for you and your consulting business. The links are to tier 3 pages on ICB.com that provide more information on each category of independent contractor insurance.

It is important to differentiate between the Insurance requirements of your consulting practice i.e. your Business and your Personal Insurance requirements. Both categories should be given careful consideration as you work through the transition from employment to self employment.

Do not neglect consideration of your Personal insurance requirements, particularly if you are leaving a fulltime employment where your current package of benefits includes cover funded by your employer for the cost of Family Medical Insurance, Dental Insurance and basic Life Insurance. These and other benefits will be lost once you terminate your contract of employment.

Business Insurance

All Risks Insurance

Business Interruption Insurance

Employers Liability Insurance

Jury Service Expenses Insurance

Key Man Insurance

Legal Expenses Insurance

Motor Insurance for Contractors

Product Liability Insurance for Contractors

Professional Indemnity Insurance

Property and Contents Insurance

Public Liability Insurance

Tax Investigation Insurance

Tax Loss Insurance

Travel Insurance