subject: Limited Company Sickness Cover [print this page] As we all are well aware, this December is bringing with it what feels like another ice age, and with that comes runny noses, slippery floors and a whole pallet of general illnesses. Because of this, and because Christmas time seems destined to ruin the human body until a few months into the following year, the importance of sickness insurance suddenly becomes more apparent. Accident and sickness insurance is obviously very effective to anyone who falls ill or has an accident, but as most working professionals receive employee benefits such as sick leave anyway, as a policy it does not apply to everyone.
For an insurance product covering accident and sickness, the prime candidates for policy holders is of course, one man bands, sole traders and contractors. This is because above all others, sickness insurance could be the most important cover they have in any event of unforeseen misfortunes, and in the current climate, illness and accidents are prime candidates. Why contractors I hear you ask? The reason why contractor sickness insurance is so important to limited company professionals is because as owners of their own companies, contractors are not under the protection of any other form of health insurance (such as employee sick pay as mentioned earlier). Contractor are not employees, therefore a company that they may be working for will not provide them with any advantages that benefit any member of staff, instead they must implement their own means of professional protection, enter sickness insurance.
The importance of sickness insurance for contractors is vast, the policy basically acting as a month by month wage to those unable to earn money due to the factors that the insurance covers (unsurprisingly these are accident and sickness). Take a contractor who has broken their leg for example and as a result cannot work for 6 months. If this contractor had taken out contractor sickness cover as a policy prior to their injury, then they will benefit from a cash package paid to them every month (time periods differing regarding the terms and conditions of the insurance policy). This is essential to almost every UK contractor who relies on their pay check to sustain a professional lifestyle, and for some sole traders earning 200 a day for example, continued pay checks will be vital.
Contractor sickness insurance is a life assuring policy that can save contractors from any life changing occurrence. Accidents and illnesses are often unavoidable calamities that can devastate a limited company contractor's finances and working life, but with the implementation of a policy such as this, many of life's misfortunes can be covered enough to ensure financial stability. Professionals working via their own limited company are obviously subject to many greater perks than PAYE employees, but running a business does require putting certain reassurances in place. Above all other insurances, covering health and sickness is highly recommended because as well as providing an essential cover, the policy guarantees peace of mind to the contractor.
