help, I think I need some kind of insurance - am a bit worried

[lucysnowe]

Hi all

(bit long, sorry)

I have a new freelance role with an employer I previously worked for permanently. It is a great big company but the bit I am working for is small, and it's all my past colleagues who are all friendly and nice. Ive worked for them freelance for about four years now, never with a contract, and it's all been fine (payment etc confirmed via email). But now my role is much bigger and I am making much more money, and I feel the need to safeguard myself against losing the job or - much, much worse - getting sued by the big company (v. unlikely, but the mere thought gives me a cold sweat!)

So please anyone in the same position without a contract, can you tell me if you have indemnity insurance or any other safeguard? Any advice appreciated!

Hello

I am no legal expert (so maybe not the one to help!) but I would have thought you would need a contract in order to make insurance valid or at least support any claims that get to court...So if it got to court etc what evidence would you have to show you were working there , what you were doing, what was the agreement? Obv v unlikely that would happen and I might be wrong..

I got a contract drawn up by a freelance legal person via www.peopleperhour.com after somebody didn't pay me and I also have PI (am marketing freelancer) with Finsbury. I work with a few different clients though, so it felt like I had to after being fleeced!. I also think it gives a good impression with new clients, that not being an issue with yours as they know you.

Depends what the contract is for (on-going/project based) as to whether or not they'll be up for break clauses/notice periods. But I guess that would be less risk than having no contract where as you mention they could just drop you.

You don't mention this and you prob already know but there are issues (IR35) if you are only working for one client as a freelancer as it could be viewed they are avoiding employing you etc.

Getting a contract and insurance won't take much and will cost a couple of hundred, but it sounds like it might put your mind at rest?

HTH

As far as I'm aware, any offer and acceptance of work is classed as a contract, so having something in writing by email is fine. But, as PP says, the company could be liable to put you on their payroll (their problem, not yours) depending on how the work is carried out. A simple contract could be helpful for both of you setting out how much and how often you'll be paid, etc.

I've worked freelance for a few years now and wouldn't pay for someone to write a contract for me - you can find examples online or DM me and I can send you an example.

Professional indemnity insurance though, yes, definitely recommend that to cover yourself against being sued.

oh, also should say, the insurance doesn't protect you against them dropping you - a contract which states what work you're doing for them, for how long, does though. It would be worth having one that lasts a year so you can review the terms (including your fees) annually. I'd also recommend trying to have more than one client - for peace of mind in case something happens to them or the relationship you have with them. Otherwise you are working as an employee but without the benefits of redundancy legislation, etc

Oh guys, thankyou so much! The payroll thing is very interesting - I will bring it up with them, because I don't want them to run into trouble. And I will look into doing the odd bit of other work, too. The contract is an ongoing thing but a yearly update is a good idea. It is a relief that the email is a contract!

watersign, could you post the website of your insurer pls, as I can't seem to google it?

FM> understand completely what you are saying. If the job is terminated abruptly I would have some other resources to fall back on but it would take time to build them up. I am going to put together an 'emergency fund' as well.

An emergency fund is a v good idea - it makes it easier to feel confident around clients when you know you can cope if they leave (a bit like any relationship!).

This link might help you
www.freelanceuk.com/news/3211_print
In explaining why some emails weren't a contract in one case, it helps show how to make sure it is in your case!
I make a point these days of writing up in an email what it is I think we've agredd to verbally (fees, work, dates, etc) and then ask if they can confirm I have it right. That way I know I've got something in writing.

A college I taught for got stung for a huge NI bill and back-tax because the freelance lecturers were deemed by HMRC to be employees. A pain for us (no more expenses to offset tax) but a massive pain for them