Energy Sector Contractor - Insurance Requirements
What insurance policies do those contracting in the energy sector need?
As a provider of contractor insurance policies, we are often asked which policies are needed. Whether working on site, offshore, or in an office in the energy sector, the types of policies applicable to you may differ.
For any self-employed person, Public Liability Insurance is generally recommended as it covers you for third party claims relating to injury or property damage. This policy of course becomes even more relevant if you are undertaking manual work as part of your services, however you will often find this policy as a basic requirement of your contractual agreement with the agency or end client regardless of the type of work you undertake.
We provide a minimum of £5million indemnity for energy sector contractors, at specially negotiated premiums. You should always review your contractual agreement before purchasing.
In the large majority of cases for contractors, Employers Liability insurance is not necessary, as it covers you for claims made by employees should they suffer injury/death as a result of their employment.
However, if you employ another person, be it a spouse completing administrative tasks or another fee-earner, you may be legally required to hold this policy.
It is once again worth reviewing your contractual terms, as this policy can sometimes be stipulated, particularly in standardised agency contracts. We can provide £10million cover as an add-on to your Qdos Public Liability Insurance cover.
Professional Indemnity insurance is another policy which is commonly stipulated in contracts. It is generally more applicable to those in office roles who may be offering some form of advice or service which could cause the client a financial loss, but is often a feature of contractual agreements regardless of the role undertaken and may apply to more manual roles as well. PI Insurance covers for claims made against you for a financial loss caused by error, omission, or negligence in the provision of your services.
Qdos Contractor provide Professional Indemnity policies at competitive premiums, with a range of indemnity limits available to suit your needs.
As a contractor, particularly if operating via a limited company, you may be at risk of the IR35 legislation. IR35 is a piece of tax legislation which seeks to differentiate between a genuine business, and a worker who is using a limited company for tax advantages. It is a complicated and ambiguous piece of legislation which can leave a contractor faced with large tax bills - click here for more information on IR35.
In addition to being a market leader for energy sector contractor insurance, Qdos are a leading authority on the IR35 legislation, and as such can provide contractors with insurance policies to mitigate the risk of such investigations, including expert representation in a large range of tax enquiries.
Policies include Tax Enquiry Insurance for representation only, and Tax Liability Cover which in addition to the defence, covers the ultimate debt if found caught by the IR35 legislation following investigation.
Other insurance risks which may be relevant to you as an energy sector contractor include contractor sickness cover, legal expenses insurance for legal disputes such as contract disputes, jury service cover, and travel insurance.