Working as a contractor offers flexibility and independence, but it also means you're responsible for protecting your income.
Unlike permanent employees, many contractors working through umbrella companies, CIS arrangements or self-employment don't automatically receive benefits such as company sick pay or death-in-service cover.
If illness or injury prevented you from working tomorrow, how long could you continue paying your mortgage, rent and household bills?
That's why it's worth understanding the different types of protection insurance available.
1. Income Protection
Income Protection is often described as your own personal sick pay.
If you're unable to work because of illness or injury, it can provide a regular income until you're able to return to work, helping you cover essential living costs such as:
- Mortgage or rent
- Household bills
- Food and everyday expenses
- Family commitments
For many contractors, this can be the most valuable form of protection because their income stops when they stop working.
2. Critical Illness Cover
Critical Illness Cover provides a tax-free lump sum if you're diagnosed with a specified serious illness, such as:
- Cancer
- Heart attack
- Stroke
The payment can be used however you choose, whether that's:
- Paying off debts
- Funding private treatment
- Making home adaptations
- Supporting your family during recovery
Rather than replacing your income, it helps reduce financial pressure at what can be a very difficult time.
3. Life Insurance
Life Cover helps protect the people who depend on you.
If the worst were to happen, it can provide money to:
- Pay off a mortgage
- Replace lost income
- Cover funeral expenses
- Support your family's future
For contractors with partners, children or financial commitments, it can provide valuable peace of mind.
Why This Matters for Contractors
Research consistently shows people are more likely to experience a period of long-term illness during their working life than many realise.
For contractors, even a few months without income can have a significant financial impact.
Having the right protection in place can help ensure that an unexpected illness or injury doesn't become a financial crisis.
Odyssey's Partnership with Cleerly
At Odyssey Contractor Solutions, we believe supporting contractors goes beyond payroll.
That's why we've partnered with Cleerly, independent protection specialists who understand the unique needs of contractors and self-employed professionals.
They can provide personalised advice to help you understand what protection may be appropriate for your circumstances, with no obligation.
Learn more about contractor protection here: 👉 https://www.cleerly.co.uk/odyssey-protection/
Please note: Protection insurance is arranged by Cleerly, an independent specialist. Odyssey Contractor Solutions does not provide regulated financial advice. Any recommendations regarding insurance products will be made by Cleerly based on your individual circumstances.