What Are The Benefits Of Holding Insurance?

Benefits Of Contractor Insurance

Our comprehensive insurance policy package includes professional indemnity insurance, public liability insurancepersonal accident cover, directors’ and officers’ liability, and employers’ liability. But covering you as you go about your work is only part of what we do. There are numerous other benefits to holding the correct insurance:

It’s a key IR35 indicator:

There’s enough to discuss about IR35 to make another blog post entirely (in fact, we’ve done just that). But, to put it simply, it’s a piece of government legislation aimed at uncovering ‘disguised employment’. What’s that? In essence, ‘disguised employment’ is when a freelancer works on a contract through their limited company, but their working conditions and contract indicate that they are working in the same way as a traditional employee.

If you get caught up in this legislation then your income will be subject to normal income tax and National Insurance contributions, meaning that you’ll lose the advantage of the low salary, high dividends tax arrangement that many contractors benefit from.

If HMRC decide to investigate the validity of your contract against the stipulations of IR35 legislation then they’ll carry out a series of Business Entity Tests. These tests function as one of the ways to prove that your contract is at low, medium, or high risk of being caught out by IR35.

Being covered by professional indemnity insurance (one of the elements of the Kingsbridge policy package) can improve your IR35 stance significantly, and forms a significant part of the Business Entity Test.

Ensuring you are fully covered as a freelance contractor is a vital step towards covering yourself at every level. At Kingsbridge we have designed our core insurance package to cover the risks you’re exposed to as a freelance contractor. This includes Professional Indemnity, Public Liability and Employers’ Liability cover, all at levels that suit the needs of the modern freelancer.

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Customer Champion of the Year – Insurance Times Awards 2015

Insurance Times Awards 2015

We’re delighted to say that we’ve recently picked up another awards nomination, to go along with our nominations for Digital Insurance Initiative of the year at the British Insurance Awards and Best Banking, Insurance & Financial Services eCommerce at the eCommerce Awards, alongside our shortlisting for Affiliate Member of the Year at the APSCo Awards for Excellence 2015. This time we’ve been nominated for Customer Champion of the Year at the Insurance Times Awards, an accolade we’re particularly delighted with. Our customers are the foundation on which Kingsbridge Contractor Insurance is built, and we’re very pleased to be recognised as a company that goes out of its way to put the customer first. We’ve always sought to provide the best customer service possible, and we’re continuously looking for ways we can improve further.

Insurance Times is the media partner of choice, and premier news, information and insight brand, for general insurance in the UK, with an audience of key decision-makers, business placers and principals in brokers, insurers and service suppliers. The awards take place on 1st December at Battersea Evolution in London. We’ll keep you updated on any future nominations or award wins right here on the Kingsbridge blog.

In the meantime, if you’re a contractor or freelancer looking for insurance then why not get a quote online, or get in touch with one of our client services team on 01242 808740 or at info@kingsbridge.co.uk. You can find us on Twitter and Facebook too.

Everything You Need To Know About Professional Indemnity Insurance

Professional Indemnity Insurance

As a contractor, you’ll find that clients and agencies will often insist that you hold adequate insurance before you undertake a contract. Having the right insurance in place will ensure you’re in line with the terms of your contract, and will provide you with cover should a claim be made against you. One of the most important covers for a contractor or freelance professional to hold is professional indemnity insurance (also known as PI.)

PI is a key IR35 indicator. It’s not a requirement for a traditional employee as they’d be covered by the insurance provisions of their end client. Holding professional indemnity insurance therefore provides a clear distinction between contractor and employee. The fact that you, as the contractor, have purchased professional indemnity insurance demonstrates a financial obligation and a responsibility to protect your interests.

Below you’ll find an easy to follow breakdown of what PI is, why you need it, and a few examples of claims so you can see the full picture.

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Myths of Contractor Insurance

Myths Of Contractor Insurance

The world of contractor insurance can sometimes be a little confusing to navigate. Everywhere you look there are people telling you what you need and what you don’t. Here at Kingsbridge we know the contractor marketplace inside out. With fifteen years of experience serving the contractor community, we’re able to provide knowledgeable, trustworthy, and impartial advice. Below we’ll try and clear up a few of the most common misconceptions that surround contractor insurance. Without further ado:

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Which business insurance do I need as a contractor?

Contractor Insurance

We know it can be a minefield for contractors when it comes to purchasing the right insurance cover to protect you and your business. The volume of products available to you can make the whole process a little overwhelming, so we’ve set out five essential insurances you’ll need going forward. Read on below:

Professional Indemnity Insurance:

Professional indemnity insurance is designed to protect contractors against claims for negligence (such as making a mistake, or giving bad advice.) It also provides cover for loss of documents, loss of data, breaches of intellectual property, as well as defamation and libel.

If you do make a mistake for which you are responsible or are deemed to have been negligent, then professional indemnity insurance will cover any compensation that you have to pay as a result, as well as any legal costs you’ve incurred in the process. A mistake could end up costing you tens or hundreds of thousands of pounds so it’s vitally important to have the right protection in place. It’ll also cover the cost of fixing any mistake you may have made, which could help you to avoid having a larger claim made against you.

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Our Budget reaction: What impact will it have on the contractor community?

Summer Budget Reaction

The first Conservative-only Budget in 19 years took place in the House of Commons yesterday and whilst there were some positives, the Tories announced a number of changes which will undoubtedly affect contractors in a negative way, with contractor dividends, expenses, and IR35 among the areas targeted by the Chancellor.

Chris Bryce, CEO of IPSE, noted: “The combination of the action on dividends, clamping down on travel and subsistence and potentially toughening up IR35 legislation could leave many contractors feeling pretty sore.”

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How every contractor can benefit from Professional Indemnity insurance

Professional Indemnity Insurance

We’ve no doubt that you’ve heard of Professional Indemnity insurance before. You may know it by a different name; errors and omissions, PI insurance or professional liability insurance. Whatever you call it, it means the same thing.

It’s insurance that provides cover for freelance contractors in the event that a client suffers financial losses as a result of a ‘breach of professional duty’. That could mean neglect of professional responsibilities, an error in work or omission on the part of the contractor.

It’s a pretty fundamental element of cover for any contractor. It will protect you if a client alleges you’ve made a mistake in any designs, advice or specifications you provide during the course of your contract.

Many freelance contracts now require you have a minimum level of Professional Indemnity cover and for good reason. Read on to find out what we think are some of the main benefits that this insurance can bring to a contractor’s life.

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A look ahead – what will the general election mean for freelancers and contractors?

General Election 2015

It pays for freelancers, contractors and the self-employed to pay attention to what is happening politically in the country.  Regardless of the outcome of any election, the independent professional community will be affected by policy making and the winning party’s stance on the self-employed and small businesses in general.

In research published last year, IPSE found that up to 90% of their freelance membership was likely to vote in the upcoming general election. Now, with just over a week to go until the day of reckoning, interest within the freelance community is at its highest.

With election fever well and truly in full swing we wanted to take a brief look at how each of the main parties proposes to support the UK’s freelance community and how independent professionals will fare depending on which party, or which coalition, assumes power on 7th May.

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Five resolutions every contractor should make for the new financial year

New Financial Year 2015

We all made our diet, fitness, productivity and anything-else-you-can-think-of resolutions in January, as the new calendar year rolled in. However, April brings us a new kind of New Year: the new financial year.

As we covered last month, the Chancellor has revealed his final Budget before the general election and the calendar has officially restarted on the fiscal year. So, what better time to look at some practices every contractor can assume for the benefit of their finances. Here are our five financial resolutions that every freelancer should think about implementing this financial year.

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A Contractor’s Guide to Public Liability Insurance

Public Liability Insurance

Whether you’re a career contractor or you’ve just dipped your toe in the world of professional freelancing, you’ll have likely heard about Public Liability insurance. And there’s a reason for this; it’s one of the most important types of business cover and it’s an absolute essential for any contractor.

Why is it so essential? Well, as we all know, accidents and mishaps can happen, but that doesn’t mean that you, or your business, need to be out of pocket as a result. Public Liability insurance protects you and your business in the event of an accident or damage being caused where you could be held liable.

If you don’t invest in Public Liability insurance, and someone is injured or property is damaged as a result of your actions, then you could become legally bound to pay them compensation. Simple mistakes can become expensive, fast!

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