Expenses Guide - Insurance

Insurances are notoriously confusing as there as so many different types of policies available to businesses. The three most common policies are:

Employers Liability Insurance (EL)

All employers are legally required to have EL, unless the only employee is also the owner. It is there to protect employers against claims from their employees for accidents or sickness caused through work.

Freelancers should consider any substitution clauses in their contracts which they would not practically be able to fullfil if not for EL insurance.

Public Liability Insurance (PL)

Covers against injuries to your clients and other members of the public when they come to vist you at your premises.

Combined EL and PL packages are widely available, starting at around £150 per year.

Epic installation failProfessional Indemnity (PI)

Protects against claims from your customers as a result of negligent services provided. It is very common for contracts to insist that adequate levels of PI cover are in place.

When taking out a policy retrospective cover should be considered for claims that might be made against work done in the past. Similarly, a "run-off" policy is advisable when a business stops trading.

Depending upon the level of cover required Professional Indemnity is widely available from about £200 a year.

You can pretty much get insurance for anything these days. There are plenty of other policies which may or may not be useful for your own business' circumstances, these include:

  • Property and Contents Insurance
  • Product Liability InsuranceTax Investigation Insurance
  • PAYE Audit Cover
  • Legal Expenses Cover
  • Business Interuption Cover
  • Motor Insurance
  • Key Man Insurance
  • Critical Illness
  • Life Insurance
  • Private Medical Insurance
  • Income Protection Cover
  • Critical Illness Cover
  • Private Medical Insurance