The majority of limited company contractors will have insurance requirements stipulated within their contracts. The most common of these is Professional Indemnity and Public Liability. Occasionally Employers Liability will also be included – this will only apply if you have employees however some agencies/clients insist on the insurance regardless, particularly if it is mentioned in the contractual terms.
For sole traders and freelancers, most will take out Public Liability insurance in order to protect against risks involving damage to third party property and injury to a third party caused during the provision of services. Depending on the nature of the work, Professional Indemnity may also be a key policy to hold, particularly if you are providing some form of advice for your clients.
Limited company contractors may also be interested in IR35 insurance products which seek to protect you in the event of an IR35 enquiry from HMRC. This legislation doesn’t impact those operating as sole traders, however sole traders may look to protect themselves against other HMRC enquiries with a tax enquiry insurance policy.