Aidhan Accountancy Home > Contractors/Freelancers > Professional Indemnity Insurance for Contractors

Professional Indemnity Insurance for Contractors

For contractors and freelancers there may be a requirement for you to take out professional indemnity insurance cover.

Professional indemnity insurance covers contractors and freelancers against the risk of claims should your client suffer from:

  • Any financial loss due to negligence by the contractor/freelancer
  • Errors or omissions
  • Delays in the delivery of projects or work that severely impact the client

Do contractors and freelancers need professional indemnity insurance?

Whether you work at a client site, from home or remote sites, professional indemnity insurance may be required if you:

  • Provide advice to your clients
  • Handle data belonging to a client
  • Are responsible for a client’s IP (intellectual property)
  • Provide a professional service and could be challenged on your work. You may feel confident in the quality of your work, but any contractor/ freelance business is vulnerable to a claim of negligence when professional advice or services fail to meet a client’s expectations and cause financial loss

Who should I choose to provide me with professional indemnity insurance?

We at Aidhan Accountancy recommend Qdos Consulting. Why choose them?

  • They offer a range of industry-specific policies to suit the risks you face in your profession
  • Choose from several limits of professional indemnity insurance cover, up to £5 million
  • You can pay for your premium annually or monthly
  • No cancellation or administration fees – make changes to your policy at anytime

Professional indemnity insurance quotes are available online by visiting Qdos Consulting.

Are my professional indemnity insurance premiums a tax deductible expense through my Ltd Co?

In short YES.

Professional indemnity insurance premiums are normally incurred wholly & exclusively in the line of your contractor/freelancer business so therefore the cost of the premium can be expensed through your Ltd Co and attract corporation tax relief.

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