PayStream, an umbrella payroll and accountancy firm, has revealed that public liability and professional indemnity insurance are vital products for contractors to own. With a rising blame culture being noted in the UK, negligence claims are more likely to be filed against companies and individuals than before. In addition, with a turbulent economy, many firms would not survive the compensation costs resulting from claims without an appropriate insurance policy.

Contractors running their own businesses are directly responsible for any mistakes or errors that may be made in their work. As such, compensation claims filed for negligence fall back on individuals and, for most people, individual insurance will be required, as agencies and current clients will not provide cover.

Highlighting the important need for protection products, PayStream revealed that professional indemnity insurance would cover omissions or errors in services, and additional acts proved to be negligent. Public liability insurance would protect contractors from claims made by a third party because personal injury or property damage was noted. Additional insurance products could also be added to portfolios, including personal accident and employer’s liability, providing contractors the option to protect themselves against claims from employees and accidents.

With the New Year looming, and many individuals looking to make a fresh start, taking out insurance now is vital for contractors who want peace of mind in 2012. With the economy remaining turbulent, safeguards against financial ruin are extremely important to ensure continuation of business.