The Office for National Statistics report that the number of self-employed people is increasing massively year on year. The number of people self-employed in the UK increased from 12% of the labour force in 2001 to 15.1% of the labour force in 2017.

While many self-employed people made the move due to lack of job availability, almost all are reaping the benefits of being their own bosses. It gives you the opportunity to have full control over your career, but it also comes with a range of risks you cannot ignore. With no protection or support from an employer, self-employed insurance is more important than many people realise.

What is Self-Employed Insurance?

Self-employed business insurance policies protect you and your business financially in the event of an unexpected scenario. It protects you should the worst happen. Dependent on the cover you opt for, it can protect obvious things such as damage to your property. It can also cover less obvious things such as financial protection should your advice cause loss to your clients. If you work for yourself then it is likely you will need some kind of self-employed insurance. What you need will depend on factors including:

  • Whether you have any employees
  • Whether your business has shareholders
  • If your business has a high volume of valuable assets
  • The type of business you run
  • Whether you sell or create products
  • Whether you give out advice or information as part of your service

These are just some of the factors which will influence the kind of self-employed insurance you may need.

Protecting your Business against Liabilities

The most important kinds of insurance for a self-employed person relate to liabilities from clients and other third-parties:

Professional Indemnity Insurance

Professional indemnity insurance or professional liability insurance is essential if you offer advice or specific services. This insurance covers compensation costs should a client suffer financial loss due to a mistake or negligence made by you or an employee. Mistakes can happen and should your advice lead to a loss for your customer, they may need to make a claim against you. Professional liability insurance provides financial protection should this happen.

Employer’s Liability Insurance

If you have any employees you are legally required to have correct insurance cover in place. Most businesses must have at least £5 million of employers’ liability cover. This insurance protects your employees and business should the worst happen. This type of insurance will ensure legal fees and compensation are covered if an employee makes a work-related injury or illness claim.

Public Liability Insurance

Not all self-employed insurance policies will include public liability insurance. Public liability insurance is not a legal requirement. However, it ensures you are protected if clients or third parties visit your business premises. There are also policies which will provide cover if you visit client’s homes or their premises too. Public liability insurance provides compensation and legal fees cover if a third-party makes an accident, injury or damage to personal property claim.

Self-Employed Insurance with Just Quote Me

Just Quote Me works with business people from all backgrounds, including many self-employed business people. We can help talk you through a range of self-employed insurance quotes so you can find the right option for your business.