Contractor and sole trader services are a key resource for many industries, in fact, they form a large and particularly important majority of the energy sector.
As such a specialist industry, it’s not uncommon to see offshore or energy sector workers required to hold insurance policies that are not widely understood.
In this article, we break down insurance requirements for the industry and, with the help of Qdos Head of Insurance, Elliot Fox, highlight some key considerations when purchasing.
Public Liability provides cover for disputes with third parties relating to property damage or personal injury. Whilst Public Liability can be purchased as a standalone policy, our most frequently purchased product for energy sector customers here at Qdos is joint Employers and Public Liability.
Outside the core policy coverage, one of the main benefits is the valuable expertise that claims handlers and legal professionals can provide in the event of a claim, enabling claims to be dealt with in the most efficient way possible, and guiding the policyholder through an unfamiliar process.
Employers Liability covers the policy holder for their legal responsibility for injury or accidental death sustained by employees. As previously mentioned, at Qdos, Employers Liability can be purchased alongside Public Liability as a joint policy.
It is often the case that energy sector contractors are unable to go offshore without valid Public and Employers Liability insurance documentation.
Professional Indemnity (PI) provides cover for the policy holder in the event of a negligence dispute wherein a client alleges there has been an error or omission in the services provided by the professional. If a client relies on the professional services provided and suffers a loss that should reasonably have been avoided had an error or omission not been present, they may look to recover such costs from a professional.
PI is typically only purchased by those providing advice, design, or consultancy. This is usually due to the nature of claims and negligence disputes.
Those working in a more manual capacity may not need it, however, similarly to Employers and Public Liability, this policy can be found a contractual requirement.
Contractor Sickness cover is designed specifically for contractors, this provides a monthly benefit in the event that a doctor signs the policyholder off from work in relation to disease, sickness, or bodily injury that prevents the insured from undertaking the normal provision of services.
Sole traders and limited company contractors lack the safety net an employer provides of payment in the event of illness or injury.
Personal Accident Insurance provides cover for the policy holder in the event that the insured person suffers an accident resulting in an insured injury or illness. This provides a lump sum of up to £50,000 and ensures that the policy holder’s income is protected during difficult times.
Given the nature of work within the energy sector, accident and health insurance policies are particularly popular among the self-employed.
“As with any insurance policy, those purchasing need to be aware of the terms and conditions and go through all policy details carefully, reaching out to the provider for assistance as required.
When buying energy sector insurance, here are some other key considerations:
Ask away! One of our team will get back to you!