Every contractor wants to keep their business outgoings to a minimum. When you’re looking to reduce your business spending, it can be tempting to cut away at expenses that seem extraneous to your requirements: a business telephone contract that you’ve never used, expensive professional software licences when a free program works just as well, memberships of professional bodies where you don’t use any of the benefits. But there’s one contractor cost that should never be cut – business insurance.
It’s true that you may never claim on your insurance. But there are many risks to operating without proper business insurance in place, from the small to the serious. Even without the need to make a claim, insurance is working for you every day, helping you to secure clients, meet the requirements of contracts and as an IR35 indicator. In the event that things go wrong in the course of business, or you encounter an unhappy client or third party, insurance becomes even more crucial to protect your livelihood, mental health and even your home. This blog looks at the escalating risks of not having proper business insurance in place if you are working as a contractor.