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Why is it important for freelancers to consider insurance options?

You will be aware that running your own business brings new challenges and responsibilities. It is in your best interest to ensure that all aspects of your business run as smoothly as possible and Orange  Genie Accountancy recommend that you carefully consider insurance matters.

If you’re a director of your own company you will need to consider the following:

  • If you are visiting clients’ premises or have candidates and clients visiting your premises you need to acquire Public Liability Insurance. It covers your business for claims made against it from third parties. For example, you may damage a client’s equipment or injure one of their employees.
  • You will need to think carefully about Employers’ Liability Insurance. This insurance covers your company against its legal liability for loss, damage, injury or disease caused by an employee and arising out of the course of their employment. Employers’ Liability Insurance is a compulsory insurance requirement under the Employers’ Liability Insurance Act (1969). Not to carry cover is a criminal offence. 

However, a UK limited company with one director who owns 100% of the shares of the company need not carry Employers’ Liability Insurance. That said, taking on a spouse or relative or friend as a co-director or hiring temporary help or taking on permanent employees changes things and Employers’ Liability Insurance should be considered. Having Employers’ Liability Insurance may be a requirement of some contracts you enter. If you are in any doubt about whether you need to acquire this type of insurance you need to take advice.

  • If through the course of your day to day activities you are giving advice you should consider Professional Indemnity Insurance. Many contracts these days make it clear that freelance professionals have to carry professional indemnity insurance. This insurance provides legal defence costs against claims made against your company for advice given. It can also protect you where errors and omissions are made. We recommend that advice is sought in regard to the need for this type of insurance.
  • We recommend that if you work from home and use your car for business that insurance needs are properly covered.
  • If you are a company director, an independent specialist insurance advisor can advise on a range of various relevant insurance policies e.g. Legal Expenses, Directors & Officers, business equipment , personal accident, sickness and travel to name but a few.

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