Income Protection for Contractors
Contractors can get income protection via limited company, umbrella, or sole trader. 50-70% income covered. Prove income via accounts, dividends, contracts. 2-3 years history usually needed.
As a contractor, you're unlikely to have statutory sick pay or employer benefits to fall back on. Income protection provides a regular monthly payment if illness or injury prevents you from working, giving you financial security to focus on recovery rather than finding the next contract.
Cover is subject to policy terms. Pre-existing conditions may be excluded.
Key Points
- 1Available for limited company, umbrella, sole traders
- 2Cover 50-70% of gross income
- 3Proof via accounts, dividends, SA302
- 4IR35 status affects income calculation
- 52-3 years trading history typical requirement
- 6Covers illness/injury, not contract gaps
Eligibility Criteria
- Minimum trading history (usually 2-3 years)
- Income evidenced by accounts/tax returns
- Current active contract or recent history
- Occupation must be insurable
- Health declaration required
Typical Timeframe
Applications take 1-4 weeks. Claims pay after your chosen waiting period (typically 4-13 weeks for contractors who have some savings buffer).
Next Steps
- 1Gather company accounts or tax returns
- 2Calculate average income over 2-3 years
- 3Consider appropriate waiting period
- 4Check IR35 implications with accountant
- 5Compare quotes from contractor specialists
Why This Matters for Your Mortgage
Understanding these details helps you make informed decisions during the mortgage process. Every element of your application—from deposits to documentation—affects your approval chances and the rates you can access.
Lenders assess applications holistically, weighing multiple factors together. Knowing what they look for allows you to present the strongest possible application. This is particularly important for non-standard situations where lender criteria varies significantly.
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Related Questions
For more detailed information about this topic, visit our comprehensive guide:
Protection
Content reviewed: January 2026
CeMAP awarded by The London Institute of Banking & Finance. Cert CII (MP) awarded by the Chartered Insurance Institute.