Contractor income protection insurance

Have you planned for a time when you aren’t bringing home the same money you’re earning now?

Income protection insurance broker for contractors

What if you were suddenly getting less – or nothing – for a long time?

Income protection insurance for contractors insures against loss of earnings through injury or illness. It’s an excellent way for you to replace the sick pay benefit you would normally receive if you were employed on a permanent basis.

Generally, income protection is a monthly benefit that pays around 75% – 85% of your income while you’re unable to work and is based on your earnings prior to the claim. Policies can differ in duration, with short-term plans typically covering between 1-5 years, and longer-term policies paying out until retirement. As a contractor, your income can be open to interpretation, leading to the possibility of paying for a policy that doesn’t work for your situation. 

As a leading insurance and mortgage broker, Cleerly will be able to advise you on the best income protection insurance plan for you. 

Benefits of income protection

Solutions for contractors, self-employed professionals and people paid through an umbrella company

Protecting your family

With over 15 years' experience working with a wide range of contractors, our team of insurance specialists have the knowledge and expertise to find the right income protection plan for you - giving you and your family peace of mind when you need it most.

Just like mortgages, not every insurance option out there works for you and the way in which you work. Our contractor specialist protection consultants can help you find the most comprehensive, cost-effective and suitable income protection cover for you.

Income protection specialists

Do you want to safeguard your earnings for a time when you may not be earning as much?

Contractor income protection FAQs

Insurance protection works by paying you a monthly income if you are unable to work due to an accident or illness. It can cover approximately 65% – 80% of your earnings and you can choose how long you want to wait before the payments start - the longer the waiting period, the lower the premium. Income protection can help you maintain your standard of living and avoid financial stress while you recover. However, not all policies are suitable for contractors, so why not give Cleerly a call today on 02394 212912 to discuss your options?

As a contractor, you will know only too well what a prolonged period of no income can mean for you and your family. Income protection means you will be paid a monthly benefit which can be as much as up to 80% of your previous earnings. This can help you cover your essential expenses, such as mortgage payments, bills and family expenditure. Income protection can also give you financial independence and peace of mind while you recover. 

Income protection insurance for contractors does not cover:

  • Redundancy
  • Self-inflicted injuries
  • Illness or injury as a result of alcohol or drug misuse.
  • Travel to any country with political instability, significant conflict or an active epidemic.

Apart from these exceptions, income protection plans will usually pay out in most circumstances for contracting professionals. 

The cost of income protection depends on several factors, such as:

  • The amount of monthly benefit you want to receive if you are unable to work.
  • Your age, health and occupation.
  • The waiting period before the payments start, which can range from 4 to 52 weeks.
  • The duration of the payments.
  • The type of premium you choose.

Cleerly is committed to finding the right policy for you, at the right cost. Speak to one of our expert consultants today for more details.


Each insurer is different, but similar to a health insurance policy, any pre-existing medical conditions you've experienced or had treatment for will need to be declared. Based on this information, your income protection plan will either:

  • Cover the pre-existing medical condition on standard terms;
  • Offer to cover the condition for an increased premium; or
  • Exclude the medical condition from the policy

There is no definitive answer as it depends on your personal and business circumstances. If you choose to pay for income protection yourself, this will come out of your post-tax earnings. However, if you were to make a claim, you would receive tax-free payouts as you would have already paid tax on the money used to pay for the policy.

If you pay for income protection through your limited company, also referred to as “Executive Income Protection” you may be able to claim the premiums as a business expense which may be tax-deductible. It's important to be aware that with executive policies, any payouts would be treated as a trading tax receipt and taxed accordingly. You should speak with your tax adviser about tax implications before applying for this type of cover.

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