This advised that under new rules companies who employ only themselves (one person) and cannot afford to buy compulsory Employers Liability Insurance will no longer need to buy it from 7th March.

Caunce O'Hara launched a scheme for IT Contractors nearly 10 years ago. This scheme was significant at the time in that it provided Employers Liability Insurance well under the standard minimum premium charged at that time and this is still the case today.

Within our Property and Liability package, which starts from £112, the Employers Liability premium element is less than £30.

I would though encourage contractors to keep this cover as:-

• The cost is not prohibitive
  
• Many personal service companies have their wives as employees, and others employ part time help at times , not always comprehending their responsibilities and duty to have Employers Liability cover in place
  
• A contractor is likely to have written into their contract a Substitution clause. By having such a clause within your contract this no doubt helps you not fall within the IR35 legislation. If you fail to carry Employers Liability insurance you cannot fulfil the Substitution clause without breaking the law.

We understand the decision against the background of where many of those affected were paying high minimum premiums to the insurance industry.

As stated the original intention behind this decision arose because of the prohibitive cost of Employers Liability cover to some. This does not apply in this sector or under our scheme and not to have it invites unnecessary risk and exposure as well as not helping any argument over IR35 you may need to have.

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Caunce O'Hara