Question about insurance for limited company

[nvall]

Hi all,

As a new contractor (currently looking for my first contract), I would like to ask you for any insurance company recommendation and also what kind of insurance package should I go for.

I am a software engineer and they have suggested to me these guys -> https://www.hiscox.co.uk/

I have got a quote but they provide a bunch of covers like professional indemnity insurance, cyber and data cover, etc.

Could you tell me which one should I choose?

Thanks in advance.

[Protagoras]

Hi all,

Could you tell me which one should I choose?

Sorry, but you really need to work out what insurances you need for your business.

A strong clue will be provided in B2B contracts that your LtdCo enters into, which should include insurance requirements.

You may wish to obtain insurance beyond the minimum level in contracts though; it's really your business decision.

[Lance]

If you don't have a contract yet you are not a contractor.
When you get a contract, it will state what cover you need. Sort it out at that point.

Who are 'they' that told you?

[nvall]

Thanks both for the quick replies. I have spoken to a couple of people that they work as contractors. One of them also told me that it's good for me to have an active insurance even before I apply for a role. This contradicts what Lance says. Btw, I have already started applying for roles. Could you tell me what the process should like like by the time I got a job?

Thanks again!

[northernladuk]

Thanks both for the quick replies. I have spoken to a couple of people that they work as contractors. One of them also told me that it's good for me to have an active insurance even before I apply for a role. This contradicts what Lance says. Btw, I have already started applying for roles. Could you tell me what the process should like like by the time I got a job?

Thanks again!

First rule of contracting. Don't run your business based on hearsay from other contractors. You don't need insurance until you start work so whoever said that is wrong. If you got an inside gig you wouldn't need it so will have wasted your money. Wait until you get a contract, look at what is required then go get it. They may ask you for evidence before teh contract but you'll still get the requirements you need. Hop on to Hiscox, QDOS et all and buy it. Simple.

If you are a contractor it isn't a job. It's a short term assigment at a client. Your job is being a contractor.

Apply first, research everything you can about contracting by reading the first timers guide to the right and searching the forum using the google method described and if you can't find an answer (which you will) then come ask us a question. We can't give you the entire low down as a question such as 'how do I become a contractor' is impossible to cover in the detail you need. A quick example, you may get a gig that is inside or outside IR35. The approach to either of these is vastly different so we can't cover both. Do your research as you are on your own now so down to you and you alone.

Google search method is described here.
https://forums.contractoruk.com/welc...uk-forums.html

[northernladuk]

And if you don't know what I mean about inside or outside IR35 then you've got an awful lot to learn very quickly. All this is about being a contractor. Doing the stuff for the client is easy, even the perms can do it. The job of a contractor is knowing all the legislation around it, knowing how you are engaged and paid and finding your work.

[nvall]

Thanks northernladuk for your reply. Things are clearer now regarding insurance. I have read the first timers guides and also I believe I know what means inside or outside IR35. As you say, I am planning to get a contract first and take it from there.

Thanks again.

[Lance]

Thanks both for the quick replies. I have spoken to a couple of people that they work as contractors. One of them also told me that it's good for me to have an active insurance even before I apply for a role. This contradicts what Lance says. Btw, I have already started applying for roles. Could you tell me what the process should like like by the time I got a job?

Thanks again!

if you have PI insurance cover for £1m and the contract states you need £2m then having it ahead of time is of no purpose.
It's easy to get it raised £2m, but no easier than buying £2m when you know that's what you need.

You may need PL. You may not. Some agencies insist.

You may need EL. You probably don't but some agencies insist, and are you going to die in a ditch over the £50 it costs?

And for PI, the insurance company wants to know what your turnover is. If you buy the insurance before a contract, what are going to tell them?

[SueEllen]

Thanks northernladuk for your reply. Things are clearer now regarding insurance. I have read the first timers guides and also I believe I know what means inside or outside IR35. As you say, I am planning to get a contract first and take it from there.

Thanks again.

Between the time you are given the contract paperwork and you sign it, you can get all your insurances online within an hour.

[Lance]

Between the time you are given the contract paperwork and you sign it, you can get all your insurances online within an hour.

just renewed by PI. It took < 10 minutes.
And saved me £70 as the requirement is for £1m (rather than £2m) with my current contracts