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Self-Employed Insurance: What Cover Do You Need When You Work for Yourself?

Self-Employed Insurance: What Cover Do You Need When You Work for Yourself?

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.

Protect your Livelihood with Self-Employed Insurance

Protect your Livelihood with Self-Employed Insurance

The Office of National Statistics found 4.8 million people in the UK were self-employed in 2017. This is a growing section of the popular and many self-employed people don’t know the ins and outs of protecting and managing their business. Whether working from home or on dedicated premises, all individuals working for themselves should protect their businesses with self-employed insurance.

What Self-Employed Insurance do you need?

The insurance relevant for your business varies dependent on many factors. One of the most important things when arranging your self-employed insurance is understanding what types of cover you need.

Most self-employed businesspeople will require public liability insurance as standard. This helps provide financial protection should a third-party claim for accident, injury or property damage due to your business or work.

Self-employed insurance options may also include:

  • Professional indemnity insurance: if you provide advice and guidance
  • Commercial buildings and contents insurance: if you work from a separate premises than your home for business
  • Business interruption insurance: should your business be interrupted for any reason, you can access financial support
  • Office insurance: whether at home or on separate premises, you can get insurance to specifically cover your office equipment and specialist tools where needed

The Risks of No Insurance

Many self-employed people believe the small nature of their business means there could never be an issue requiring insurance. However, smaller businesses have less cashflow and therefore, should there be a problem, finding the funds to deal with it is much harder. This makes it even more important to have financial protection in the form of insurance. It is a safeguard for your business should you be faced with an unexpected event or claim.

Self-Employed Insurance with Just Quote Me

Working with businesses of all sizes, Just Quote Me can help you find the right insurance. We work with business owners to look at their individual requirements and can offer quotes from a range of insurance providers to suit your needs. Contact us today to find the right cover for your self-employed business.