Being a sole trader offers freedom and opportunity, but it also comes with risks. That’s why understanding insurance for sole traders is essential. Key covers to consider include Public & Product Liability, Plant & Equipment and Personal Accident insurance. If you hire contractors or employees, Workers’ Compensation may apply, and if you provide advice or professional services, Professional Indemnity or IT Liability cover should also be considered.
Insurance to consider:
- Public & Product Liability Insurance: Critical for businesses interacting directly with the public. It covers legal costs and compensation claims if someone is injured, or their property damaged from goods or equipment sold or when visiting your business.
- Professional Indemnity Insurance: Necessary if you provide advice or professional services. It covers both legal defence costs and court-awarded compensation arising from negligent advice or services which cause a financial loss to clients.
- Personal Accident Insurance: covers your weekly income to pay bills and expenses if you get injured on the way to or from work or at work. It also pays a lump sum to you if you are permanently injured or even killed. As you are working for yourself, it’s important that you protect yourself and the people that depend on you.
- Property and Equipment Insurance: covers tools and equipment on the site, in lockups/ storage or in your vehicle. It covers accident loss or damage, including if the tools are stolen.
- Motor Vehicle Insurance: covers you for loss or damage to your vehicle and damage to third-party property. This is not covered by Compulsory Third Party (CTP) Insurance, which is a different compulsory insurance and only covers injury to people, not damage to other people’s cars or property.
- Commercial motor vehicle insurance has two main options. Comprehensive cover, which covers damage to your own vehicle, as well as damage to other people’s cars or property, or limited third-party property damage (TPPD). This is not covered by Compulsory Third Party (CTP) Insurance. You can also add extra cover, such as hire car costs following an accident or theft.
Protecting yourself and your business financially is key to having a successful business.
If you are looking for information and advice about insurance options for sole traders, contact us today. We specialise in helping businesses of all shapes and sizes find the right insurance cover and cost to meet your budget.
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