Insurance Information for the Self-Employed
If you are setting up as self-employed for the first time, you may be overwhelmed with the amount of admin and organizing that needs to be done to officialise your new endeavour. You need to make sure that everything is set up correctly from the start to ensure you don’t get into any trouble with HMRC or the law, as well as having all the processes and procedures you need for the day to day running of your business. Don’t stress – if you do all the planning and administration up front, being your own boss will be as great as you imagined.
One important thing that you need to remember to do is set up insurance policies relating to your business. Establish exactly what you need to be covered for in order to protect yourself against any problems that may arise. Insurance may seem like a big cost when you are just starting out, but treat it like an investment as it could save you huge amounts in the future. There are some insurances it is advisable for all self-employed individuals to have, whilst the type of business you are in will determine any industry specific policies you may require.
If you have customers or other parties come to your workplace, even if this is your home, you may want to get Public Liability Insurance. This is designed to protect you from claims should someone be injured or made unwell due to something which occurs on your premises. Even if you never host clients, contractors or any other business associates, you should still look into this insurance as it also protects you from claims should you damage someone else’s property whilst out conducting business.
Insurance against accidental damage should be taken out for your company equipment and premises. If your workplace is your home, you may believe that you would be covered for any incidents by your home insurance policy, however in most cases this is not correct. If your business equipment is stolen or damaged by an accident such as a water leak or power surge, often you will find you can’t claim for these losses. Taking out a separate business policy ensures you can get up and running again in no time, and keep business and home life separate too.
If your business claims to give positive effects from a product or your advice you should strongly consider taking out professional indemnity insurance. This type of cover protects you from any claims should your offering have an adverse effect. Even with the best will in the world you may have an unhappy customer at some point, and this insurance will cover your legal costs and any settlement to your customer should they take you to court.
Setting up on your own for the first time can be a daunting prospect, but by taking the time to plan, assess risks, and put processes in place from the beginning, you can save yourself a lot of hassle as you become more established.
This article was provided by Hiscox, a leading UK insurance company. You can get a public liability insurance quote from Hiscox online.