# Income protection for contractors



## dreaddan (Mar 9, 2007)

HI, does any one know anything about income protection that covers contractors?
I'm looking at going contracting when im made redundent but not sure what the score is with it.

Cheers
Dan


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## rinns (May 24, 2008)

dreaddan said:


> HI, does any one know anything about income protection that covers contractors?
> I'm looking at going contracting when im made redundent but not sure what the score is with it.
> 
> Cheers
> Dan


I'm a contractor mate (IT) I pay around £38 a month which gives me £1800 a month after 3 days. I can claim this until I'm 65 !

The policy is with pioneer http://www.pioneer-friendly.co.uk/

I had to go thorugh my insurance broker to get this deal.


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## dreaddan (Mar 9, 2007)

How does it work? Ie is it just sickness/illness cover or is there a level of unemployment cover too?

Thanks


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## rinns (May 24, 2008)

dreaddan said:


> How does it work? Ie is it just sickness/illness cover or is there a level of unemployment cover too?
> 
> Thanks


Just sickness, I would think that it would be almost impossble to get unemployment cover as its too unpredictable


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## dreaddan (Mar 9, 2007)

Thanks thats what I thought but someone was on about cover for unemployment .
I'll have to coller them again and find out what they were on about.

Out of intrest do you use a umbrella org or have you set your self up?

Thanks


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## rinns (May 24, 2008)

I'm a ltd company. Didnt want to go down the route of someone else controlling my expenses etc


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## organgrinder (Jan 20, 2008)

Anyone using an umbrella company will eventually get their collar felt by HMRC since the HMRC view is that these companies only exist to evade tax!

If you are contracting make sure that your contract is outside the scope of IR35.


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