Insurances and Income Protection

This is step 12 of our guide Contracting in the UK.

Company Insurances

If you go down the limited company route then you will need to purchase some contractor insurances to indemnify your company. These include

• Professional Indemnity Insurance - meets claims made against you.
• Legal Expenses Cover - cover to defned or pursue your rights.
• Business Liability Insurance - Protects damage to yours and clients property.

Protecting your Income

As a contractor you don't get the benefits normally provided for you as a permanent employee. These include sick pay, payouts upon death or critical illness.

If you have a partner, kids or other family members then you may wish to consider the following products to give you peace of mind:

• Permanent Health Insurance - Monthly income if unable to work.
• Critical Illness Cover - Lump sum upon diagnosis of critical illness.
• Life Cover - Lump sum in the event of your death.

Step 13: Contractor Mortgages and Pensions