Word cloud graphic of health, insurance and financial terms

Contractor Insurance

Contractors are hired to provide a specific service or skill-set to clients, often working on a designated project. But what would happen if you made an error which resulted in financial loss to your client? They will want compensation, and without insurance your mistake could be extremely costly.

Having the right insurance not only protects against potential legal and financial claims, it demonstrates to clients that you’re a reputable professional who respects the importance of health and safety. It can also be an advantage in helping to ‘fall outside’ of IR35.

So what kind of insurance should you get? As experts in contract recruitment, we’re often asked by candidates new to contracting what kind of insurance they need, so we’ve put together this quick reference guide.


The cost of your premium will be determined by factors such as:

  • annual turnover
  • the type of service you provide
  • number of employees in your company
  • level of cover required

Professional Indemnity Insurance

The risk of professionals falling victim to third party claims is extremely high. Professional Indemnity insurance provides cover against compensation claims and legal costs to protect anyone who provides advice, design work or other professional services such as:

  • Accountants
  • Architects
  • Engineers
  • Estate Agents
  • IT Consultants
  • Independent Financial Advisers

Limited Company contractors working through Fuel Recruitment are required to have Professional Indemnity Insurance with cover of at least £500,000.

Public Liability Insurance

Public Liability insurance is designed to cover your business in the event of third party claims being made against you for negligence. This could be anything from personal injury to damage of property. If your business brings you into contact with members of the public you will need Public Liability insurance.

Limited Company contractors working through Fuel Recruitment are required to have Public Liability Insurance with cover of at least £1,000,000.

Employers’ Liability Insurance

Employer’s Liability insurance is arranged to protect employers against claims for injury or illness brought by employees.

Limited Company contractors working through Fuel Recruitment are required to have Employers’ Liability with cover of at least £10,000,000.


These large figures may seem off-putting, but being properly insured is a vital part of responsible contracting, and is more affordable than you might think. There are many insurance providers that specialise in cover for contractors, so it’s worth shopping around to find the best deal.

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