Contractors’ Questions: Can I claim income protection while on sick leave?

Contractor’s Question: Can I claim income protection and receive payments during sick leave?

Expert’s Answer: Before I tackle the particulars of your question, you must be telepathic! We will soon share with ContractorUK a few key scenarios that income protection will, and will not cover and even - perish the thought - the circumstances in which a provider could actually take back monies paid to you!

For everything else, there’s ContractorUK’s comprehensive income protection guide – a must-read for contractors like you, and of course don’t miss 5 reasons you need income protection in the first place.

Sick leave or sick pay?

But your ask is whether you can claim income protection on sick leave.

For the purposes of this question, I’m going to take it that you do only mean sick ‘leave,’ and not sick ‘pay’ – which is touched upon here.

As to whether you can claim income protection while on sick leave, the answer is a resounding ‘Yes.’

‘Activities of daily living’

However, your claim will be assessed on the ability to perform “activities of daily living,” instead of the ability to carry out your “own occupation.”

This means that the insurers will instead assess you on the ability to walk a certain distance -- without the use of walking aids, dress yourself, reach cupboards that are high up, and various other activities which you need to do on a daily basis.

Reduced benefit

Be aware, the benefit you receive will also reduce the £1,500 per month -- the maximum amount any insurer would provide you with for this option.

You can quickly see why it becomes important to review your income protection policy regularly, and potentially have to go further -- keep a beady eye on it in the event that there is a change in your circumstances. Good luck!

The expert was Daniel Gibbs, head of protection at Freelancer Financials.