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Our specialist contractors insurance offers expert cover for contractors, including engineering, IT, project managers, accountancy and many more.
As a contractor every project can be different. Finding the kind of contractor insurance cover that can fit your varied needs, whatever your situation, is important. With over 30 years' experience, we offer an unrivalled knowledge of the risks facing your specialism, whatever it may be.
Cover at a glance:
- Specialist contractor insurance for professional corporate contractors
- Cover available for HR specialists, accountants, marketers and many more
What is contractor insurance?
As a contractor, if you organise your contract through an intermediary (such as a recruitment agent), this may not absolve you from a claim made by a client. It is important that you have contractors’ insurance in place to protect your business and reputation should a claim be made against you.
Cover starting at
£5 a month*
* Price based on an IT contractor requiring £1 million of public liability insurance cover.
Do contractors have to have insurance?
If you were to be accused of professional negligence or making a mistake in your work that incurs financial losses to your client, they may hold you responsible for the error and take legal action to cover their losses.
Should a client or member of the public be injured in the course of your business and you were responsible, they could make a personal injury claim against you seeking compensation. Also, a third party or competitor may accuse you of breaching of their intellectual property - this could cost you greatly if they were to take successful legal action.
Example policy documents
If you have an existing policy with us, please sign in to view your policy documents.
Below you will find examples of the documents provided.
Insurance for freelancers
Freelancer insurance is slightly different. Being self-employed means you have the freedom to be your own boss, working from home one minute and from a café the next. But this doesn't come without risks. You are responsible for your professional reputation and will need protection should a claim be made against you. Some clients may not consider taking you on without proof that you have arranged business insurance.
By ensuring you have freelancer insurance in place, you can rest by having peace of mind that you’re covered, should things not go to plan.
Insurance for sole traders
Sole trader insurance works a little differently to contractors insurance. You’re not operating as a limited company and you are personally responsible for any liabilities your business faces. As a result, your needs will be slightly different. Accusations of inadequate advice given to a client may arise, despite your best efforts. Accidents on your premises or theft of your essential tools could add a financial burden onto the business and therefore yourself. To understand further on how we could cover you for these circumstances, read more about our sole trader insurance.
How to buy business insurance for contractors
Just fill in our simple online quote form which will provide you with a quote for the type of insurance to consider. Our quote system asks about your role and activities and offers policies that may be of interest. It can take as little as 90 seconds and you have the ability to choose the level of cover to suit you and your business' needs.
What does contractors' insurance cover?
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Professional indemnity insurance for contractors
Contractors’ professional indemnity insurance covers the cost of defending your business against allegations of professional negligence (such as giving your client incorrect or wrongful advice) and if unsuccessful, the cost of damages awarded against you. This is a necessity for contractors, as many clients will require it before entering into a contract with you, and insurance cover is available with limits ranging from £50,000 to £5m.
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Contractor public liability insurance
Public liability insurance for contractors covers the cost of defending your business (including damages awarded against you if unsuccessful) if someone is injured, or their property damaged, which arises from you going about your business or supplying products. The legal fees alone could cost your business thousands of pounds. General liability insurance for contractors limits range from £1m to £5m.
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Employers' liability insurance
Employer’s liability insurance is a legal requirement if your business has employees. It covers your business against claims for injury or illness suffered by employees arising from their employment. If you employ staff, this cover is essential. Cover for £10m.
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Legal expenses insurance
Legal expenses insurance for contractors pays your legal costs and expenses for contract disputes, tax enquiries (including IR35), attending jury service, debt recovery, personal injury, as well as any award you are required to pay following an employment dispute with an employee. There is a limit of £100,000.
If a client takes legal action against you because of an error you have made, this cover can prevent you from needing to use your own finances to cover legal expenses.
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Directors and officers insurance
Directors and officers insurance covers the costs of defending you as a director or officer of your company against allegations of wrongful acts and any damages subsequently awarded against you. Cover is also provided in respect of the legal costs and expenses of defending actions for disqualification as a director, investigations and extradition proceedings. Limits range from £100,000 to £5m.
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Office insurance
Office insurance covers your office buildings, office contents and computer equipment against accidental damage (including theft) whilst on your business premises. You can also choose to cover your business equipment (such as laptops and mobile phones) on a worldwide basis, and insure your business against loss of income and/or additional trading expenses following events such as damage to your property.
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Occupational personal accident insurance
Occupational personal accident insurance provides a weekly payment if you are unable to work due to temporary total disablement (subject to a 14-day deferment period).
In the event of loss of limbs, sight, speech, hearing, permanent total disablement or death, a lump sum would be paid out.
If you would struggle to maintain an income if you were unable to work following the accident, you should consider having occupational personal accident insurance to help ease the financial burden. Limits from £100/week to £500/week for temporary total disablement (£25k lump sum to £100k lump sum for permanent total disablement).
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Cyber and data risks insurance
Cyber and data risks insurance pays the costs of restoring data and equipment, informing clients, meeting ransom demands and loss of your net profit following a cyber attack. It also pays your legal defence costs and damages you are legally liable to pay to other parties. If you hold confidential information about your clients and their projects on computers and other internet connected devices, you should consider this cover.
How it works
Choose the cover you require
Get a quote you need in minutes
Buy online or contact one of our advisors
How much does contractor insurance cost?
At Markel Direct, we offer contractor insurance from £5 a month for £1 million worth of public liability cover*. When it comes to insurance, the cost varies from business to business depending on;
- The size of your business - your turnover and whether you have any employees
- The level of cover you choose
- The types of projects you work on and the equipment you use.
- To get a clearer idea of how much you’ll pay, simply get a quote online.
Ready to build your quote?
Our simple quote process will help you to find the right business insurance for your individual needs.
Frequently asked questions
These frequently asked questions are designed to help you and include questions relating to policy cover, pricing and ‘technical’ terms.
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I need professional indemnity insurance to secure a contract - do you provide proof of cover?
Yes. If you purchase your policy with us, your documents are emailed to you instantly and include a dedicated 'Confirmation of Liability Insurance' document (detailing the cover you have with us) which you can present to agencies and clients as proof of cover.
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I work from home - doesn’t my home insurance policy cover me?
It is unlikely that your home insurance policy would cover you for risks arising out of running your business at home. Check with your home insurer to find out. In most cases, you need to arrange separate business insurance.
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Do contractors need professional indemnity insurance?
Professional indemnity insurance covers against allegations of professional negligence - which means it could cover you if you were to make an error or mistake in a piece of work (such as a project or report) for a client.
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Do contractors need public liability insurance?
Public liability insurance covers against allegations of injury or illness caused to third parties by your negligence. This includes many of the slips, trips and falls that are associated with personal injury claims. In addition, public liability insurance covers against damage to third party property - for example, if you were to damage a client-owned laptop or smartphone.
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What does business equipment insurance cover and do I need it?
Our office insurance covers portable business equipment such as computer equipment, photographic equipment and mobile phones anywhere in the world (including at your premises) and is on an ‘all-risks’ basis. There are some exclusions so please refer to the relevant summary of cover for a more detailed explanation of the cover we provide. As a freelancer or a contractor, you may want to consider adding this to your policy.
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What’s the difference between a contractor and a freelancer?
Whilst similar, there are slight differences between contractors and freelancers. Contractors are an external worker usually brought in to complete a particular project, and tend to work on a contract-by-contract basis. A freelancer is not affiliated to a particular company; as such, many freelancers aren't tied into a single contract and can choose how much work to take on. Visit this article for more information.
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Is my past work covered?
We cover past work if you have held professional indemnity insurance uninterrupted prior to arranging your policy with us.
If there was a period of time where you did not have professional indemnity insurance in force (for example, you have never arranged professional indemnity insurance before, you chose not to renew a previous policy or you cancelled a previous policy at the end of a contract) we are unable to cover past work.
If you require further clarification, don't hesitate to call us on 0800 640 6600.
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What limit of cover should I choose?
Many clients and industry bodies with regulatory requirements will require you to have a minimum level of cover for you to undertake a contract, so it's worth checking this before you arrange cover. If you're unsure, give some thought to a worst-case scenario and the likely costs involved in putting your mistake right. We offer a range of limits on insurance, so you're sure to find the right cover for your business.
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Why should I choose Markel Direct's Insurance
Markel Direct has over 25 years of experience insuring contractors, consultants and self-employed professionals. We insure over 200,000 micro businesses and are highly rated by our customers at Feefo.com.
We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023
To talk about your insurance requirements and better understand our cover, call us on 0800 640 6600 or get a quick quote online.
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How are Markel Direct regulated?
Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.
We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023
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