Contractor Insurance Claims

Claiming on your insurance is something that none of us ever really want to do, but often it is necessary, and when it does, one does not want to be scratching their head as to what to do. Insurance for contractors is a busy market at present, and policy holders should know when they are able to make a claim.

images (1)The importance of contractor insurance is high, and within a competitive business, limited company professionals should understand what policies are relevant to them. There are a number of different forms of protection for self-employed individuals, and cover can be purchased for almost all eventualities.

When it comes to any form of insurance and paid protection, one of the most common questions that crops up is when exactly one should make a claim. Of course, if someone crashes a car, the first thing that they would be asking (apart from ‘am I alive?’) would be what is the number for my insurance provider? When it comes to professional protection however, notably contractor insurance, the potential for claims on a cover policy is less clear cut. It is important that when the time comes, contractors know exactly what they are entitled to as set out in their insurance policy.

Maintaining professional indemnity and protecting limited company finances are both very important when contracting, the safety of PSCs being the priority of self-employed professionals. Within the business market, no matter what sector one may be working in, all self-employed workers are liable and susceptible to claims being made against them. Whether this is because of an accident occurring to others around them, their professional mistakes, or simply a loss of client property or finance, contractors must obtain sufficient insurance to stay protected.

Contractor insurance is highly valued as a form of cover, each different policy providing protection against a number of potential eventualities that could result in financial loss to a limited company. It must be noted that this form of insurance provides cover to the limited company, and not the individual, thus for example it would be ‘Larry LTD’ that was covered, and not ‘Larry’ himself.

Deciding whether or not one can claim on their insurance can differ, obviously depending on both the policy itself and the circumstances of the issue. Insurance for contractors is vital in the profession, and the insurance works commonly on claims made basis. If a contractor working via their limited company was to be the on the receiving end of a liability claim, then their insurance would act as financial cover. Popular contractor insurance products can cover eventualities from accidents and sickness, tax and IR35 related issues, and even cover travel insurance, all serving a purpose tailored specifically to a contractor’s needs.

Being financially covered is so important to professional contractors, as being business owners; their limited company is potentially vulnerable to liability claims as a result of a number of different eventualities.

Contractor insurance offers far more than the standard cover in many cases, the existence of a policy offering the best of both worlds, giving the policy holder further benefits than financial protection when insurance is in place. What this means is that many policies are advantageous regarding the professional status of a contractor regarding tax and HMRC guidelines.

For more info – contact Robert J Russell – 972.292.8967


About robertjrussellcompanies

International Real Estate Agent * Insurance Broker * Radio Talk Show Host * Public Speaker * find out about me - visit
This entry was posted in Business, Insurance and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s