What insurance is most essential for freelancers?

Even with the best-laid plans, there are many things that can go wrong for the freelance clients of accountants in Surrey from Sherwin Currid (http://www.sherwincurrid.com), not least incidents that require financial compensation. One unfortunate event can wipe out a freelance business if the right insurance is not in place, but freelancers will need to carefully consider those forms of cover that are most suited to their own activities.

One controversial piece of legislation, for example, is the intermediaries legislation, better known as IR35. Many a client of a tax accountant in Surrey have found themselves being investigated by HMRC and deemed to be employed. You may therefore want to take out specific contractor tax investigations insurance covering all investigations that are ever likely to be conducted into your personal or business tax affairs. PCG, for example, offers its own highly rated Tax Investigations Insurance.

Certain forms of insurance are absolutely compulsory for freelancers. These include employers’ liability insurance, which acknowledges the legal responsibility that employers have for the health and safety of their personnel at work. It means that if any of your employees fall ill or are injured as a result of work, you have protection covering possible compensation and legal fees. With very few exceptions, all freelancers need a minimum of £5m of employers’ liability insurance. Nor is it impossible that someone could be injured, or their property damaged, as a result of a collision while you are driving your car, making motor insurance a wise investment.

There, are, however, further types of claims that can be made against the company of someone using a tax accountant in Surrey, making some other types of cover recommended. These include professional indemnity insurance that, in the event of your professional advice or services causing a financial loss to one of your clients, protects your business from the cost of compensation. In certain professions, such as accountancy, law and financial services, this type of cover is a legal requirement. However, there are other professions to which it could have relevance if freelancers give professional advice. Examples include marketing, publishing, engineering design and management.

Freelancers are also routinely advised to take out public liability cover, which protects them against accidents to members of the public or property damage occurring as a consequence of their business activities. Property and contents insurance is also vital for the protection of business property, encompassing premises, fixtures and fittings, computers, equipment, stock and more – with those working from home advised to check that their home contents insurance actually covers their equipment used for business purposes. If not, business-specific cover will need to be purchased.

Other types of insurance exist that are worthy of consideration by a freelancer using Sherwin Currid’s (http://www.sherwincurrid.com) tax accountants in Surrey, ranging from permanent health insurance and income protection insurance to critical illness insurance and legal expenses cover.

Editor’s Note: Sherwin Currid (http://www.sherwincurrid.com) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.