While the UK remains in lockdown, we know that many contractors are working reduced hours, and many are currently not working at all. Financial pressures may mean that you are looking to manage your outgoings and reduce spending where possible. This may cause you to question the money your currently spend on your insurance, wondering if it's a cost you could do without, or even if the cover is still valid.

It is important to remember that cancelling or reducing your insurance could leave you exposed to risks that you may continue to face.

Some of the key elements which make up your commercial insurance are still just as essential during this time, even if you are currently working less, or not at all:

Property and vehicles insurance 
Whether you’re working or not, it’s vital to have cover for the tools, property, stock, and vehicles you own. If for example, your vehicle was stolen during lockdown, it could take longer to get back up and running when the lockdown is lifted. Without it, could you afford to recover the costs or replace these items? Unoccupied premises and laid up vehicles will still be covered by your insurance if you follow any recommendations from your insurer.

Public liability cover
It is a requirement of your NAPIT membership to have a minimum of £2 million public liability cover in place. Public liability insurance is vital because it protects you if a claim is made against you by a customer or member of the public for damage caused to them or their property. If you provide emergency services during the lockdown, your public liability insurance will still be valid as long as you follow the latest government advice – such as social distancing, and wearing a mask and gloves.

Employers liability insurance
It is a legal requirement to have employer's liability insurance if you employ people, even on a part-time basis and even if they are not currently working every day. Without it you could face fines of up to £2,500 per day that you're not covered. Cover is designed to help with compensation and legal fees if an employee falls ill or is injured at work.

Professional indemnity insurance 
Professional indemnity is important as it protects you if a customer makes a claim against your business alleging an error or omission in your professional advice and services. Cover is extended to include work you have done in the past, so even if you are not currently working, if a claim arose you would still be covered if your insurance was in place at the time the claim is made, regardless of when the work was completed. Without professional indemnity cover you could face costly legal fees or compensation.

If it is time for you to renew your policy, or you are currently searching for new cover, our team at NAPIT Insurance are still on hand to help. If you have questions about changing your cover, get in touch with us first. Remember that if you make changes now, you must revisit your policy when you get back to working normally, to make sure you don't run the risk of being underinsured. 

If you would like to speak to us, please call 03455 646 173 or email [email protected]

i https://www.gov.uk/employers-liability-insurance