Contractors professional Indemnity Insurance and Liability Insurance

Whether you are a contractor or freelancer working from home, a clients site or occasionally overseas,professional indemnity insurance meets the cost of defending claims and damages payable should a client suffer financial loss due to any negligent act, error or omission by a contractor.

For example if you're a Contractor or freelancer developing software and you accidentally put a bug into the software which delays its delivery when you are on a fixed term contract , there is a chance that your client will demand considerable compensation unless you have a water tight contract. Professional indemnity could cover the costs of such claims though. 

Contractors and Freelancers - Do you need Professional Indemnity Insurance? 

Working for yourself carries certain obligations and responsibilities - legal ones! Some important factors to consider:

• Mistakes can be costly. You carry a responsibility to your clients and they have a recourse at law against you for financial loss. The chance of a claim is small, but the chance of claim being large is high!
• An agency contract will not protect the contractor in most circumstances.
• Clients are increasingly asking to see proof of professional indemnity insurance before awarding you their contract.
• Having Professional Indemnity Insurance supports your Independent status. 

Professional Indemnity provides financial protection for your company and is designed to meet the cost of defending claims made against you, including damages that may become payable. 

Claims can occur where a client suffers a financial loss as a result of alleged mistakes or omissions on your part. You may even be sued by a client who is merely dissatisfied, but has no valid claim, leading to substantial legal costs and time away from contracts. Of course, such claims are rare.

Look for Key policy features that include:

• Different levels of indemnity cover from $100k to $2M+
• Low Premium
• Free retroactive cover
• Low excesses if you file a claim

Professional Liability Insurance

Business liability insurance protects you against third party claims for injury or damage to people or their property. For example if during a client visit you leave some business equipment on the ground, which a member of public or client trips over and injury’s themselves, that person could claim against you for compensation. As you can imagine, personal injury costs tend to be extremely high!

Key policy features should ideally include:

• a choice of liability cover from $1 million to $5M+
• Employers Liability included

Business Equipment Cover

Every year the police recover thousands of stolen goods including many business equipment items. (eg laptops, mobile phones, faxes etc). Could you afford to replace your business equipment if it was stolen?Business equipment cover provides peace of mind.

The key features of  good policy should include:

• Business equipment cover up to maximum of $25k
• Includes travel overseas