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"We can be let go at a moment's notice."

So can employees (albeit with notice pay, but many contractors have notice periods in their contracts too - though some contractors no longer include them in contracts due to concerns about IR35).

"We can be held financially liable for mistakes or bad work."

So can employees. It's very rare that either are actually sued, and the majority of contractors are insured against the risk so there's no actual risk.

"Market conditions can change, benching us for months at a time."

This happens to employees too.

"If we are sick, we get nothing."

Statutory sick pay is £94.25 per week - or annually less than £5K. It's better than nothing, but nowhere near enough to live on. Both employees and contractors are generally advised to insure against getting sick. (Some employers do pay full pay to employees off sick, though usually only for a strictly limited period of a few weeks a year.)

"Clients can decide not to pay us."

Happens to employees too. In both the contractor and the employee case it rarely happens.

"Clients can go bust, leaving us unpaid."

Happens to employees too. (They can usually reclaim some money from the Insolvency Service, though anyone on over £28K will not get the payments capped as if they only earned £28K.)

"Agents can decide not to pay us."

"Agents can go bust, leaving us unpaid."

I'll give you those two. They're relatively rare though, and not all contractors work through agencies.