Arranging a contractors insurance policy is easy, but getting the right insurance cover is not always so simple.
Here is the Simply Business guide to buying a contractors insurance policy.
1. Tailor the insurance to your trade or business type
Contractors insurance can be quite complex because of the sheer number of different trades, professions and industries it has to cover. As a result it is broken down into a number of different types of cover that can be mixed and matched to create a tailored business policy.
You can choose from covers including public liability insurance, employers’ liability insurance, professional indemnity cover, stock cover, tools cover, office contents cover, cash cover, business interruption cover, commercial vehicle cover and more.
Take some time to find out about each insurance cover and how it might benefit your business. This way you also won’t end up paying for insurance you don’t need.
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2. Cover all the legal and professional requirements
Employers’ Liability insurance is legally required to be taken by all businesses that employ staff. This means that even if you employ 1 staff member on a part time basis you must take out the insurance cover for a minimum of £5 million.
Other insurance covers, while not legally required, are often requirements of a client awarding a contract to a business. For example, some organisations require that their contractors have a minimum level of public liability and professional indemnity cover in order to give them the contract.
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3. Read the policy documents carefully
When you buy insurance the policy documentation can be quite long and, dare we say, boring to read. This often results in people not knowing which situations they are and aren’t covered for until they need to make a claim.
Our top tip is to always double check with the insurance provider what the exclusions are on a policy (ie. which things you won’t be covered for) and think about any unusual circumstances you may have in your business that might not be covered. Then read the policy documents carefully, including the part about how to claim.
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4. Don’t be afraid to ask questions
As a contractor you aren’t expected to know the ins and outs of the insurance that is needed for your particular trade. This is the job of the insurer or the broker. So don’t be afraid to ask questions.
If you are requesting quotes online, see if they have a call centre where you can run through your quotes over the phone. Any good provider should be happy to help and have staff who are knowledgeable about your business needs.
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5. Go for the more detailed online quote forms
These days you really can get a quote online in seconds – whether through an insurer’s own website or via a comparison site. But can you really be confident that you will get the exact policy you need by giving such a limited amount of information?
Our tip is to spend an extra couple of minutes on a comparison site that asks a few more questions about your business. Doing so will ensure that your quotes are more tailored, accurate and it will save you time and hassle in the long run.
Simply Business offers a choice of tailored quotes from leading insurers, which are based on the more detailed forms our customers complete. This allows them to buy their chosen policy online quickly and with confidence.
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Published: Friday, October 03, 2008
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