27/07/2026
Insurance: Why Contractors Face More Than One Type of Risk
Operating through a limited company offers contractors flexibility, tax efficiency and independence, but it also brings greater responsibility. Alongside delivering specialist services to clients, contractors must manage commercial risks, comply with tax legislation and protect their business against potentially significant financial losses.
Two of the biggest risks facing UK contractors come from very different directions. Clients may pursue claims if professional advice or services result in financial loss, while HMRC may investigate whether a contract genuinely falls outside IR35.
Professional Indemnity Insurance and IR35 Insurance protect against these separate risks, but together they create one of the strongest risk management strategies available to contractors.
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Learn why Professional Indemnity and IR35 insurance work together to protect UK contractors from client claims, HMRC investigations and financial risk