What Insurance Do I Need If I Am A Sole Trader
When talking about a ‘sole trade’ we are referring to both self-employed individuals as well as those who have their business set up as a sole trader too. The two are usually put together but plenty of sole trader businesses actually employ people too.
When it comes to insurance for sole traders there are two instances why insurance may be required. This may be because the client requires them too or they are aware of the risks they might face if they didn’t have the right insurance in place.
Many freelancers and professionals are required by their contracts to have the right insurance in place before taking on a project and many large corporate companies expect their contractors to be covered by professional indemnity insurance Llandudno and public liability insurances.
You may find that smaller companies and individuals also require it, which is usually the case with work that involves sharing of sensitive information, personal data or intellectual property.
What I need to consider
When it comes to getting the right insurance for your needs you need to consider what is best for your business. We have come up with a few questions you should ask yourself.
What’s the worst that can happen?
This is pretty pessimistic but in this case it is important to be. Think about the worst case scenario, which is unlikely to happen, but doesn’t mean to say it won’t. Making sure that you are covered for the worst will put you in a much better and more comfortable position. If you are worried about damage to your property and equipment make sure to add up the expense of everything so you can make sure you can replace it in the event of fire or burglary.
Does your home insurance cover you?
Before rushing out to buy cover, it is important to find out what other insurances you have. Home insurance sometimes can cover you but you can’t always assume. Say you were using your laptop for work and you spill coffee over it or a flood in your house destroys some of your stock. As this isn’t the contents of your ‘home’ you may not be covered so it’s best to check first before assuming.
What can you afford?
There is no point opting for a policy you can’t afford. Whilst it makes sense for your business to have the best cover possible you also need to make sure you can afford it too. Liability insurances can range from £1million to £10 million in coverage, which may sound like huge amounts but it’s worth getting a range of quotes for different levels so you can see what you can afford.
