Sole Trader Insurance

It is not a legal requirement to have Public Liability Insurance as a sole trader. However, you may find that some of your clients require it.

Even if your customers do not need you to have Public Liability Insurance, it can give you some peace of mind. This is because it can financially protect you should you injure a member of the public or damage their property, such as spilling paint over their newly installed carpet.

Without Public Liability Insurance for sole traders in place, you will have to foot the bill for any repairs, replacements, compensation or legal costs. 

The cost of Public Liability Insurance for a sole trader will depend on several factors. These include what your work involves, where you work and what your business turns over.

If you’d like to get an accurate quote for your Public Liability Insurance, simply get in touch with our helpful team.

Employers’ Liability Insurance financially protects business owners who employ others to work for them. This means that if an employee is injured or becomes ill as a result of carrying out work for you, the cover will help you to cover the costs of compensation and legal fees. 

As a sole trader, this may not apply to you. 

However, if you do at any point hire someone to work for you, even on a short-term or voluntary basis, you are legally obliged to take out Employers’ Liability Insurance. This includes if you hire labour-only subcontractors. According to the law, labour-only subcontractors are considered to be employees, and you will therefore need to have the right insurance policy to cover them.

The right Sole Trader Liability Insurance will depend on your individual business risks. However, you may want to consider the following:

• Public Liability Insurance for sole traders: This cover will financially protect you should you injure a member of the public or damage their property. This will be very useful should your work take you out and about, or if you have customers visit your business premises.

• Sole Trader Professional Indemnity Insurance: If a customer isn’t happy with the service you have delivered and decides to make a claim, this insurance will help you to cover the costs of any compensation or legal fees.
• Employers’ Liability Insurance: If you hire someone to work for you, you are legally obliged to get Employers’ Liability Insurance. This will financially cover you should an employee, labour-only subcontractor or volunteer become ill or injured while carrying out work for you.
  
• Commercial Building Insurance: If you operate your sole trader business from a premises you own, it’s a good idea to protect the structure from the risk of damage or destruction. It may also be a requirement of your mortgage lender.
  
• Tools Insurance: This will cover you should your tools be lost, stolen or damaged while stored in your premises.
  
• Commercial Contents Insurance: This insurance can cover items such as your office equipment in case they are stolen, damaged or lost.

To find out exactly what Sole Trader Business Insurance you need, chat to our knowledgeable team today.

Unless you hire anyone to work for you, you do not legally have to have any kind of Sole Trader Business Insurance.

However, getting the right insurance can give you some much-needed peace of mind. Working as a sole trader means you only have yourself to rely upon, and if something goes wrong, you may find that you need to pay a significant sum in compensation or to replace valuable equipment.

But with insurance for a sole trader in place, you can rest assured knowing that you have financial help to cover the costs. 

Technically, no you don’t. But although you don’t need to have it by law, it is something worth considering if you provide advice, recommendations or professional services.

This is because the costs of legal fees and damages can be very high should a client claim that you have given them bad advice or made an error. But with Professional Indemnity Insurance, you can more easily cover these costs, as well as any compensation.

You may also find that some trade bodies and associations require their members to have Professional Indemnity Insurance. You should therefore check the regulations of membership when you are deciding what Sole Trader Liability Insurance you need.

The cost for your insurance will depend on the exact risks you face. This will be determined by what you do, where you operate and how much your company turns over, among other things.

The best way to get an accurate idea of how much it costs is to speak to a member of our helpful team.