News Reel & Blog

Freelancer Insurance

Written by Daniel Kirby on 29th February 2016

Being a freelancer and having a limited company is not just about tax status,  you are also expected to operate as a company and an employer.  Insurance is essential.
Most of our clients require freelancers to be covered by adequate employer’s liability insurance, public liability insurance and professional indemnity insurance (for a sum insured of not less than £1,000,000 for each and every event) and any other suitable policies of insurance during an assignment.   Employer’s liability insurance may not be required where the consultant is the majority shareholder and employee of the contractor, but public liability and professional indemnity are regarded as ‘must haves’.
What it’s for..
Public liability will protect your legal liability where you accidentally cause damage or loss to third party property or injury to a third party. BECTU the broadcast union offer public liability insurance at discounted rate to members
Employers liability is arranged to protect employers against claims for injury or illness brought by employees. Employers' liability (compulsory insurance) act 1998 requires that employers maintain cover to a minimum of £5,000,000 in respect of such claims. 
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.
Where to get advice If you are a member of BECTU, it’s worth contacting them for advice and favourable rates.  State you are a BECTU member and they will connect you to the right person.  (It’s a friendly team of four people).  There is also information on their website.   (You do not have to be a BECTU member and most insurers will also offer this. )
BECTU do not currently offer professional indemnity insurance, but their insurance brokers Hencilla Canworth can arrange professional indemnity insurance via Mark Hill Insurance, Hiscox Insurance, Markel and others. 
They can be reached on 0208 686 5050,  ask about freelancer insurance for professional indemnity.
Regulation insurers are regulated by the FCA so insurers will not offer you a quote for insurance which is inappropriate to your needs.  They will ask you about your occupation in order to decide what insurances are appropriate for you.  It’s not unusual to be sent a lengthy questionnaire, but please be reassured - it is also likely that only small sections will actually be mandatory and need to be filled in.  -So don’t be put off, but maybe read before you print.