Professional Indemnity Insurance
What is Professional Indemnity Insurance? PI Insurance
covers the policyholder in respect of claims made against them by third parties following a professional error or omission in the services or advice they have provided. The policy covers both defence costs, and any liability found owing in the event of a claim.
Who needs Professional Indemnity Insurance?
Typically, PI insurance is purchased by businesses and individuals operating in established professional sectors – accountants, solicitors, architects, etc. However, the policy is equally as relevant to those operating in less traditional professional sectors such as IT and business/management consultancy.
Most crucially for contractors operating through a ltd company, the vast majority of agencies and end-clients will stipulate that the contractor must carry a PI policy.
Employers’ Liability Insurance
What is Employers’ Liability Insurance?
EL Insurance covers the policyholder in respect of claims made by employees in respect of personal injury or death which has occurred in the course of their services. In addition to defence costs associated with such claims, the EL policy will pay the compensation found owing to the employee.
Who needs Employers’ Liability Insurance?
A ltd company employing anyone other than a majority shareholder is required to carry EL cover by law – this applies even if the ltd company employs family members only.
As with PI insurance, EL cover is also frequently required for ltd company contractors operating under a contract for services.
Public Liability Insurance
What is Public Liability Insurance?
PL Insurance is similar to EL, however it provides cover for claims made by third parties rather than employees. In addition to cover for bodily injury or death, the policy also covers claims for damage to third party property.
As with EL, PL covers both defence costs and liabilities in respect of relevant claims.
Who needs Public Liability Insurance?
Public Liability is most commonly purchased by businesses and individuals carrying out manual work – for obvious reasons, the chances of property damage or personal injury are higher in these cases. However, liability claims can potentially arise from office-based clerical work and, as such, PL cover is carried by most prudent businesses.
Similarly to PI and EL, PL is frequently a contractual requirement for ltd company contractors.
Freelancer Tax Protection
What is Freelancer Tax Protection?
Freelancer Tax Protection policy covers costs of defending an HMRC enquiry. Such defences can range from a single letter, to full attendance at representation in a judicial hearing.
While IR35 is a key concern for ltd company contractors, the FTP policy will also provide cover for defence costs in the event of more routine HMRC enquiries.
Who needs Freelancer Tax Protection?
Unlike the liability covers discussed above FTP is not a contractual requirement, however businesses of all shapes and sizes may be subject to HMRC enquiry, so carrying some sort of protection is advisible.
Many accountants will offer some form of tax enquiry cover, however few will have the requisite specialist knowledge to defend their clients in the case of IR35 disputes. Qdos have successfully defended over 1,300 IR35 disputes and, as such, can provide the expert assistance required in these cases.
Tax Liability Cover
What is Tax Liability Cover?
Tax Liability Cover or TLC35 is a fully comprehensive policy which builds upon the defence costs cover provided by FTP. In addition to funding representation against HMRC in respect of an IR35 enquiry, it will also indemnify the policyholder for an tax, NI, penalties and interest for which they may be found liable in the case of an unsuccessful defence.
TLC cover can also be purchased to cover liabilities incurred following a Section 660 enquiry.
Who needs Tax Liability Cover?
Defending an IR35 enquiry can be a costly exercise, however they may potentially be far exceeded by the tax bill resulting from unsuccessfully defended a dispute.
Potential liabilities in respect of IR35 can be estimated using our free IR35 calculator.
Unlike FTP, TLC35 is a risk-assessed policy but is available to any contractor whose working practices allow for our reasonable chance of a successful IR35 defence.
Freelancer Jury Service and Legal Protection
What is Freelancer Jury Service and Legal Protection?
Freelancer Jury Service and Legal Protection or FLP provides cover for representation costs in the event of contract disputes or debt recovery proceedings.
Representation in many other forms of legal dispute are included under the policy – full details are available on the ‘more info’ product page.
In addition to funding legal action, the policy will provide a fixed benefit payment to a policyholder who is required to carry out Jury Service to compensate for lost earnings.
Who needs Freelancer Jury Service and Legal Protection?
Legal Expenses Insurance is a staple area of cover for commercial insurance packages aimed at businesses. Qdos have arranged a policy in the same vein that is tailored for the unique needs of the freelance contractor.
The policy is available to any contractor operating on a Ltd company basis.
What is Travel Insurance?
Qdos Travel insurance will provide cover in the event of difficulties whilst overseas including, but not limited to, loss of luggage/property, flight cancellation, and medical emergency.
The policy is primarily geared towards business use, however it will also protect policyholders on non-working holidays, and can be upgraded to include cover for winter sports and/or adventure activities.
Additionally, Qdos Travel Insurance policies can be extended to include family members.
Who needs Travel Insurance?
Contractors who travel on business may find that the travel insurance purchased to cover holidays will not provide any protection in respect of business trips. Similarly, some travel insurance providers will charge extra to cover business trips under their policies.
The Qdos Travel Insurance policy is designed to be the only travel policy a contractor will require.