When you’re a self-employed sole trader it’s up to you to ensure your business succeeds. While it’s a tremendous opportunity, as any big wins are yours to enjoy, many things can go wrong.
Whether you’re a tradesman, financial advisor, freelance creative or in another role entirely, business insurance can help protect you from financial ruin.
We explain more below about these products.
Business insurance can cover the cost of a variety of unfortunate events which could otherwise cause severe financial stress. From accidents and injuries to theft and legal action, there are various policies available to protect against a variety of risks. Sometimes these products may be mandatory.
Consider the below list of insurance policies that can be relevant to sole traders to see which ones may apply to you.
Public liability insurance can come in handy whether you’re out and about or working on your own in a workshop or office. Public Liability insurance is helps protect you and your business in the event a customer, supplier or a member of the public brings a claim against you if they get injured or have their property damaged as a result of negligent business activities.
If you’re a sole trader providing advice and services to clients. such as an accountant or consultant, then you may wish to consider a professional indemnity insurance policy.
Imagine you provided some bad advice, overlooked something or otherwise failed to meet your duty of care. Professional Indemnity (PI) is designed for businesses that offer specialist services or give professional advice. It covers claims against you for losses as a result of actual or alleged negligent acts or omissions when you provided a professional service or advice. Professional Indemnity insurance also helps out with legal costs associated with responding to or managing claims covered by the policy.
There are also a number of business insurance package policies* designed to cover your physical assets and these can often include public liability cover. A few examples include:
What else can be covered by business insurance? Check out our list of different types of business insurance to find out more.
Work from home? Learn more about business insurance for home-based businesses.
Looking for information about your industry? Our handy list of industry guides may be useful.
The level of cover you need as a self-employed sole trader will depend on a number of factors, such as:
To get an idea of what your premiums could cost, complete a quote for business insurance with us. It only takes a few minutes, you’ll see the kind of value such a policy could provide, and it doesn’t cost you a cent.
Cyber liability insurance is handy if you collect and store client information on a digital system, such as customer emails for digital marketing, or personal customer details such as names and addresses. Cyber Liability insurance helps to protect you from claims and supports your profitability in the event of a cyber breach or attack.
Are you a registered sole trader with employees working for you? If so, you’ll need to provide workers compensation.* However if you do not have any employees as a sole trader you aren’t eligible to take our workers compensation.
This brings up a serious question, how would you or your family get by if you’re injured and forced to take time off work to recover?
You may wish to consider an income protection policy instead, which will pay a cash benefit to you if you’re unable to work due to serious illness or injury.