Handy Guide To Contractor Income Protection
This blog will outline what contractor income protection is and why you should always make sure you have this protection in place if you are a contractor. By the end, you will fully understand what this cover does and be prompted to make sure you have cover in place, should you need it.
What is contractor income protection?
To put it simply, it does exactly what it says on the tin; as a contractor, it protects your income in an event where you cannot work. Unfortunately, you do not get the normal perks that a permanent employee would get because you only get paid when you’re working.
So, what happens if you are off work sick for an extended period? You suffer a personal injury that prevents you from working? Perhaps a contract is terminated early through extenuating circumstances?
Contractors income protection can replace up to 70% of your lost income and can prevent financial disaster in your hour of need. You will need to consider how much income you should protect; what type is suitable for your requirements and how long you might need the cover for.
Why you should get contractor income protection
No one can predict the future and no matter your industry; the risk factors are there, whether you work in IT or Construction, Landscaping or Graphic Design. Anything could happen that could affect your ability or availability to earn an income, but what about your outgoings? Expenditure like your rent, household bills and grocery shopping will all still need to be paid for.
CIP will pay you an agreed monthly payment whilst you’re out of work and can even cover a longer period of time if required. The benefit you can receive is dependant upon your contract income and the ‘deferred period’ length you choose upfront.
Where to get a CIP quote
With all insurance policies, it is always worth doing research, especially if the provider isn’t one you’ve heard of before. Don’t always expect that the most suitable contractor income protection cover to be from a well-known company or from the cheapest source. It’s much more important to find a provider that suits your needs than try to save the odd pound here or there, after all, your health and protecting your livelihood whilst you’re unable to work are not areas to skimp on.
As an alternative, you can choose to source cover for your CIP through a broker like 1st Choice, we’ll always give you honest feedback about the insurer we determine best suits your circumstances. We want to provide you with peace of mind, whilst saving you time, hassle and money. You can speak to a knowledgeable member of the team today by calling us on 01743 770 500.