Do you have just Professional Indemnity insurance or Public Liability too?

[tractor]

As a contractor I've never ever had either form of insurance in 15 years. As a retailer I would always have PL.

Has anyone actually ever needed to claim on their insurance as a contractor? I've never heard of anyone.

The first contract that demanded PI from me was in 2005 I think so I had to get a quote and went with Randall Dorling. One of the conditions was that the amount insured was £x plus £y from a 'shared' pot. When I asked how this worked, I also asked how much of that shared pot was 'at risk' right now. Turned out about 20% of a million so you should be careful and always ask those questions at renewal stage. I am quite sure ins co's would continue selling that same insurance even if the at risk was 500% lol

So in short, at least one person must have had a claim!

[Durbs]

Has anyone actually ever needed to claim on their insurance as a contractor? I've never heard of anyone.

Nope. Never come across anyone who has had to use it.

Realistically, for what PL covers me for and what I do as a contractor, it'd be a bizarre scenario where i'd actually need it.

[Taita]

For most of us who don't have employees other than ourselves and don't have our own premises, there is no insurance required by law according to Business Link.

In practice, the client/agency will generally require that you have certain insurances in place as a condition of doing business so just get whatever they require. It's also a pointer to being outside IR35.

As I have said, it adds credibility to your trading activities but thank you for the enlightenment. I really believed PL was compulsory although EL is not required until the moment you employ another person, spouse as an employee will trigger it.

[Contreras]

As I have said, it adds credibility to your trading activities but thank you for the enlightenment. I really believed PL was compulsory although EL is not required until the moment you employ another person, spouse as an employee will trigger it.

Some will have you believe that not having EL insurance invalidates your RoS clause.

(More IR35 FUD, IMHO, but there you go...)