Indemnity Insurance Cost for Contractors

Liability and professional indemnity insurance requirements for contractors may include:

Professional indemnity
Public liability
General property
Business Interruption
Small business “business pack”
Personal health and sickness

Professional Contractors will typically require Professional Indemnity Insurance and Public Liability Insurance.

Trade contractors usually will at least need Public Liability Insurance.

Both professional and trade contractors should strongly consider health and sickness cover to help protect their income.

Do contractors need professional indemnity insurance?*

All contractors providing advice for a fee need professional indemnity insurance.

Professional indemnity insurance , also known as errors and omission insurance, is a key cover requirement for contractors providing professional services.

Professional contractors need Professional indemnity insurance as it can help pay damages suffered by a client based upon your services, advice or negligence. It may also cover legal bills for ambient claims against you when you have done nothing wrong.

When a client’s project goes wrong, and/or they don’t meet their objectives, the client may come looking for someone to blame and foot the bill. You could end up liable for a bill far greater than the fees you charged.

If there is another party between you and the client, such as a primary builder or primary agency, the lines of responsibility become even more blurred. Who is responsible? Professional indemnity insurance may cover damages and legal bills.

Do contractors need public liability insurance and other covers?*

Public Liability : public liability is a core business insurance cover – its required for all types of businesses big and small- including all contractors – to cover you against damage to a third person or their property.

Contractors need public liability insurance as it can provide you with financial protection in the event of injury or damage to a third party property.

As a contractor it is important to take out public liability insurance cover to protect yourself against claims due to negligence. If you make a mistake which leads to an incident causing injury or damage to property of the client, it will result in a public liability claim that you will be legally held responsible for.

General Property – eg: loss of cameras, laptops, computer equipment.
Business Interruption – to protect against loss of business income.

Public liability, general property and business interruption may be able to bundled into a “business pack” for affordability and ease of managing.

In addition to the above covers trade contractors should also vehicle cover, tool insurance, and trailer insurance.

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What type of contractors need professional indemnity insurance?*

All contractors that charge a fee for advice or a service need professional indemnity insurance.

For example, any contractors performing the following services need professional indemnity insurance.

Bookkeeping Contractors
Business Advisers
Business Coaches
AV, Audio and Studio Engineers

For a more detailed list of contractors that may need professional indemnity insurance please click here or call 1300 542 573.

How much does insurance cost for a contractor*

For many self-employed contractors combined professional indemnity and pubic liability insurance policy start from $680.

Contractors business insurance cost: from $680 for $1 million professional indemnity PLUS $5 million public liability insurance

Please note : pricing may vary significantly from the above based on your size, clients, experience and specific contractor business activities. Contractors working on large commercial clients and government typically represent greater risk; require greater limits and higher premiums.

For a contractors professional indemnity and public liability insurance cost for your business TALK to a SMART Business Insurance broker on 1300 542 573.

How do I get a contractors liability and professional indemnity insurance quote?*

Depending on the nature of your contractors activities, the size of your projects, the size and type of clients you service and whether you engage sub-contractors , different insurance companies and underwriters are likely to provide suitable and affordable cover.

For a suitable and affordable liability and professional indemnity contractors insurance quote TALK to a SMART Business Insurance broker on 1300 542 573 or contact us online.

Why should contractors use an insurance broker?*

If you are a contractor deciding on whether to use an insurance broker for your professional indemnity insurance it is important to consider that brokers act in the interests of the small business owner. Direct insurers and agents act for the insurer. This can be important especially if you need to claim.

Brokers can help contractors by sourcing competitive quotes on policy inception, negotiate with the insurance companies to prevent or limit increases on renewal, remarket your policy to other suitable insurance companies where appropriate, talk to underwriters about policy wordings, industry classifications and terms, talk to insurance assessors during the claims process and repairers where necessary.