IR35 Insurance Requirements

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Essential insurance requirements for contractors working inside or outside IR35, including PI, PL, tax liability cover and contractual obligations.

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INSURANCE FOR IR35 CONTRACTORS

IR35 and Insurance Requirements

Contractors working inside or outside IR35 are expected to hold core business insurance policies. These protect against claims, meet contractual obligations, and support IR35 compliance.

Insurance Requirements for IR35 Contractors

  • Professional Indemnity (mandatory for most contracts)
  • Public Liability (required by agencies and clients)
  • Employers’ Liability (if subcontracting or employing staff)
  • Tax Liability Insurance (IR35 tax investigation cover)
  • Cyber Liability for IT & digital contractors
  • Tools, Equipment & Business Contents
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FREQUENTLY ASKED QUESTIONS

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Do IR35 contractors need Professional Indemnity?

Yes. PI is required for nearly all professional contractor roles and is a core indicator of operating as a genuine business.

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Is tax liability insurance needed for IR35?

Tax liability policies provide legal and financial support if HMRC challenges your IR35 status or raises a tax investigation.

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Do agencies require Public Liability?

Yes. Most recruitment agencies require PL before they will place a contractor with a client.

Related Covers

IR35 contract wording and insurance requirements often overlap when clients assess status, indemnity levels and onboarding risk. These guides help contractors move between IR35 guidance, contract-requirement pages and the core cover types they may need.

IR35 Guidance

Core Cover

Client and Sector Context

Contractor insurance review points

Contractor insurance should line up with the contract wording, the work being performed, the legal entity, site rules, professional duties and the certificates clients expect before work starts.

For ir35 contract requirements enquiries, the strongest quote presentation usually combines the immediate cover request with wider risk information, contract obligations and evidence of controls.

Contract checks

  • Required liability limits, professional indemnity wording and any named-insured or principal clauses
  • Whether the work is design, advice, project management, physical contracting or labour-only supply
  • IR35, agency, public-sector, NHS, BBC, BT, utilities or large-client insurance conditions

Cover areas to compare

  • Professional indemnity, public liability, employers' liability and cyber liability
  • Tools, plant, contract works, temporary works, goods in transit and personal accident
  • Working at height, bona fide subcontractors, labour-only subcontractors and on-site exposure

Quote evidence

  • Contract excerpts, statement of work, turnover, fees, wage roll and subcontractor split
  • Activities, qualifications, site type, claims history and required start date
  • Certificate name, trading style, company number and any client-specific wording