Business insurance for sole traders
Working for yourself can bring fantastic rewards. But it can also bring risks.
Whichever way you spin it, you're in charge. On top of your day job, you could also be responsible for looking after marketing, accounts, sales, ordering stationery, equipment maintenance, cleaning, insurance…
But it doesn’t matter how organised you are, things can go wrong. Accidents happen, a client complains, or your equipment gets damaged or stolen. And you’ll need time and a large bank balance to sort it.
That’s where sole trader insurance comes in. It gives you a team of experts on hand to help smooth out a crisis and fight your corner.
Sole trader insurance can (among other things) pay legal costs and compensation if a client complains the job isn't A* quality. Or if you break a priceless possession or injure a client. It can also cover your kit for loss, damage, or theft.
It offers the support and security you need when everything’s on you.
Sole trader insurance FAQs
Who needs sole traders’ insurance?
Being a sole trader means you’re running the show on your own. So, having back-up in the form of insurance is a pretty excellent idea!
It doesn’t really matter what you do - from the building trade to hairdressing, and everything in between. All jobs carry risks of some kind.
And if you’re a sole trader, chances are, you don’t have a wealth of legal knowledge or a bottomless gold pot at the end of your business rainbow.
That’s why paying out a little each month for sole trader insurance is a wise move. It gives you the financial protection you need to ward off sleepless nights.
What insurance do I need as a sole trader?
That will all depend on what your business does.
Most sole traders will need professional indemnity insurance to deal with claims you didn’t do your job properly. Or public liability insurance for slips, trips, and other damaging mishaps. Often both.
If you have your own work premises, be it a yard or a salon, some commercial property insurance will be needed, and maybe stock insurance too. If you’re on the move a lot, portable equipment insurance is a good idea.
For anyone working online, in any capacity, cyber insurance is worth considering too.
And don’t forget, even if you’re a sole trader, if you employ anyone it’s the law for you to have employers’ liability insurance in place.
What does sole trader professional indemnity insurance cover?
When you’re the boss, the buck stops with you. And if someone says the work isn’t up to scratch, it can be a problem.
You give someone bad advice, or a job doesn’t go to plan, and you could end up with an unhappy client who says they’re out of pocket.
Sole trader professional indemnity insurance compensates your client and pays for a specialist solicitor if you need one.
What is sole trader public liability insurance and do I need it?
Accidents happen. It doesn’t matter how careful you are.
Spill a coffee over a client’s laptop, wreck their antique furniture or leave your toolbox out and they trip and injure themselves, and it can cost you. If your client says you’re liable, you’ll face a bill.
Legal fees, court costs, and compensation can run into thousands. Sole trader public liability insurance (PL) will cover all the bases. Even if it isn’t your fault, PL will help defend you.
How much does sole traders’ insurance cost?
Because sole traders’ insurance requirements differ so widely, we can’t give you a straightforward answer to that one. But we can help you build a better picture.
It might seem pretty obvious, but we’ll point out anyway, that the more different types of insurance you have, the more you’ll pay. So, think carefully about what you need.
Having said that, it’s always better to be over-insured than under-insured. If your level of cover is below what a claim costs in legal fees and compensation, you could still end up paying plenty from your own pocket.
If you speak to a broker, they can help you decipher exactly what you need. Working to get you a policy that’s both affordable and ticks all the boxes. To get an idea of cost, you can get a quick quote online.
Why choose us for your sole trader insurance?
You have your trade. And we have ours. (It’s business insurance, obviously.)
We don’t just sell you insurance, we’re recognised by the Financial Conduct Authority (FCA) as being qualified to give you advice too. So, you can be sure you’re getting the right policy for your business.
We promise that any advice we do give you will be jargon-free. That’s kind of our thing, making tough insurance talk a thing of the past. So feel free to give our team of expert advisers a call.
Don’t want to take our word for it? Head to our customer feedback page. We’re platinum-rated you know.
