Contractors should ensure they take out professional indemnity insurance, one expert has said.

Adrian Stewart, business development executive at Caunce O'Hara, has said that it appears that going into contracting is becoming a trend in the UK job market.

He explained that freelancers need to invest in professional indemnity insurance which covers advice they give their clients and public and sometimes employer's liability insurance.

"It is common for freelancers to buy sickness and accident policies as they are mindful of the fact that they require substitute income in the event of not being able to do their work and this is often considered alongside income protection and critical illness plans," Mr Stewart added.

This advice could come in handy to older people, with one expert saying that this age group is increasingly choosing to start their own businesses.

Rachel Krys, director of Inclusive Employers, said that older people responded to the recession by starting their own business and that this explained the rising number of over-65s in work.