BUSINESS Insurances explained
Any business or agency retaining the services of a another business will likely require that business to be covered by insurance. Read on to find out more about the types of insurances your business might need.
Why do businesses need insurance?
To get the business
If you’re contracting, most clients will not sign a contract with a contractor unless they are insured – having the appropriate insurance cover in place is now seen as essential by most agencies and end clients. And as a small businesses, that will be the case if you’re providing your services to a larger company too.
For peace of mind
Insurance can be for the benefit of the business or for its employees and directors. For example, critical illness cover and life insurance can offer some security to these individuals.
To cover mistakes
If a mistake is made during a job and it costs the end client financially, they could claim against the company. This could be because of a technical error, advice that didn’t turn out to be the best, or an accident resulting in damage.
In case of HMRC investigation
All businesses are at risk of tax investigations, usually with nothing to worry about. However, with rules around IR35 changing and being confused over the years, many contractors worry about having past contracts investigated and being retrospectively found ‘inside’ IR35.
What type of insurance do businesses need?
There are a various types of insurance cover that protect against different things. It’s generally agreed that the following are the best for small businesses and contractors but your insurance provider can offer more specific advice.
Professional Indemnity
Professional indemnity insurance can help protect a business if a client claims there’s a problem with the work that’s been done. It can cover the costs of compensation to correct a mistake or settle a claim, and covers the cost of the legal defence.
Professional indemnity insurance can provide invaluable cover to businesses providing professional advice or services to clients which could be challenged.
Public Liability
Covers a business if someone else is injured, or property is damaged as a result of its actions.
Public liability insurance protects against the cost of any claims from third parties, such as compensation payouts and legal costs.
Employer’s Liability
Covers a business against claims from employees. All employers are required by law to have this in place at a minimum level of cover of £5,000,000.
Fee Protection Cover
Fee Protection Cover protects a company from additional costs incurred on professional fees in dealing with an HMRC enquiry (including IR35 enquiries).
Preferential Insurance Rates
When you sign up with SG Accounting, you’ll get preferential rates with a choice of insurance partners offering contractor-specific and general packages. This could be Professional Indemnity, Public Liability, Employers Liability, cyber cover or even general office insurance. And all new clients get their first 3 months of Fee Protection Cover for free.
Use our bespoke links for a 10% discount with:
Use code SG10 for Qdos
We’d love to chat about your accounting needs. Call us now, drop us an email or fill in the form and we’ll get back to you.
New enquiries:
newbusiness@sg-accounting.co.uk
01962 896968
Existing clients:
enquiries@sg-accounting.co.uk
01962 867550