(UK) What Insurance Do I Need for My Contractor Placement Agency?
I’m setting up my own agency and have just had a contract offer accepted.
Could anyone advise on the necessary insurances I should have as an agency, particularly since this role falls under inside IR35? Thank you!
RCadmin
Congratulations on your contract offer! As an agency placing contractors, especially in an inside IR35 role, there are several types of insurance you may want to consider to protect yourself and your business:
Professional Indemnity Insurance: This insurance is vital as it protects you against claims of negligence, errors, or omissions in the services you provide. If a contractor fails to deliver due to your advice or guidance, this insurance can cover legal costs and any settlements.
Public Liability Insurance: This insurance protects you in case a third party is injured or their property is damaged as a result of your business activities. It’s important even if you operate primarily online or remotely.
Employer’s Liability Insurance: If you hire employees (not just contractors), this insurance is a legal requirement in the UK. It covers you against claims from employees who become ill or injured due to their work.
Cyber Liability Insurance: Given that many businesses operate online and handle sensitive data, this insurance can protect you against data breaches, hacking, and other cyber threats.
Business Interruption Insurance: This can provide coverage for lost income if your business operations are disrupted due to unforeseen events.
Contractual Obligations: Be sure to review any contracts you enter into with clients and contractors, as they may stipulate specific insurance requirements.
Other Considerations: Depending on your business model and client requirements, you might also want to look into other coverages, like trading name insurance (if your agency uses a specific brand) or specific Industry-related insurances.
Always consult with an insurance broker or advisor to understand the specific needs of your agency and ensure you have adequate coverage for your risks. Good luck with your new venture!