Contractor Insurance Advice
Here are some advice articles on Contractor Insurance. It’s crucial you have contractor insurance nowadays. Indeed you won’t get some contracts if you don’t have indemnity insurance.
Moreover, client companies want to make sure they can get their money back if you cause them to take a major financial hit from a mistake you made.
The IT Contractor Insurance you may need
There are several different types of contractor insurance and you may need most of them.They range from indemnity insurance to health insurance and life cover. So, prepare for all eventualities.
Will More IT Contractors be sued in the future?
This is almost certain to be the case as clients try to recover from problems that a contractor may have created. You would be best to have indemnity insurance in case they sue you. Indeed they might not hire you if you don’t have it.
If you are operating through a limited company you may want to take out some extra insurance in case you get investigated by HMRC for IR35. These investigations can take years and the contractor can end up with a tax liability of tens of thousands of pounds. It is best to be insured against that eventuality.
How Long Will you Live? Will you need that Contractor Pension?
There are tax advantages in having a pension. You can also get other tax advantages by using your limited company.
It’s always best to tuck some money away for a pension. You don’t want to be stuck with the state pension at the end of your working life after all that hard work you have put in as an IT Contractor if things go wrong.
You may make a fortune from contracting and not need a pension. However, it is best to have an each way bet.