Self employed insurance requirements: A quick guide

If you work on a self-employed basis, it is essential that you make sure that you have the right insurance cover in place to protect you. With an extensive range of business insurance policies out there, how do you identify the right policy for you and your business? We have put together a short guide to self employed insurance requirements and needs.

Why do I need insurance?

Every business needs insurance to protect them if a third-party makes a claim. Insurance can provide peace of mind in a range of scenarios: from protecting your property and equipment in the event of damage or theft, to protecting you if any negligence causes an injury to a third-party.

For example, an employee might make a claim against you after tripping over a box that has just been delivered and left in the corridor of your work-place. You could be faced with having to pay compensation and a significant legal bill of potentially thousands, your insurance policy will cover you in this situation.

What insurance policies are available?

There are a range of policies available for businesses and the specific insurance requirements will depend on the type of business you run, the size of the business, number of employees and turnover amongst others. The key areas covered by business insurance include:

Public Liability

Public Liability insurance can protect you from significant financial losses if a third-party makes a compensation claim because your business has caused an injury to them. For example, if you are a sports therapist treating a back injury and a client claims that your treatment has caused further injury.

Employers Liability

Most businesses with employees will be legally required to have Employers Liability insurance. This will cover you if any of your employees if they make a claim against you, for example if they trip and fall while in the workplace and they injure themselves.

Professional Indemnity

Professional Indemnity will protect you if you are ever in the unfortunate situation that a third-party claim that they have suffered losses due to your work or advice. For example, if you are a counsellor and a client claims that the advice that you have given was bad advice which has caused them further distress.

Contents Insurance

Just like your home contents insurance policy which protects the contents of your home, this will protect your business products and equipment from theft and damage. Policies can be tailored to cover them when away from your business premises too, so if you are a mobile therapist for example you can still be covered when out and about.

How do I know which is the right policy for my business?

It is best to look at the risks that you would like to protect against. For example, Public Liability Insurance is a must for most businesses. Consider where there is a potential for something to go wrong and make sure that you are protected. Some areas may not be relevant for your business and your exact requirements will depend on your business needs.

Policies can be tailored to fit these needs and make your insurance policy as unique as your business is. So, whether you have a dog walking business or are a therapist there is a policy available to get you the cover that you need.

Not sure what you need? Call our UK based team on 01494 887909 to get the help you require.