If you are a sole trader or freelancer, you have the opportunity to work for yourself. If you are a photographer, a tradesperson, a graphic designer, or run an online retail store, you have one thing in common: the need for business insurance. This insurance protects your business and could mean the difference between keeping your business afloat and shutting it down. In our guide, we explain the different types of business insurances and how they can protect your sole trader or freelance business without all the jargon. First, we’ll start with one of the most important types of business insurance: public liability.
A Guide to Business Insurance: Sole Traders and Freelancers
Business insurance for sole traders and freelancers is a lot of things. It is necessary, affordable, and a way to protect your business, yourself, and your family from large financial losses. This is why understanding your options and knowing the jargon is so important.
What is Public Liability Insurance?
If you run a business that provides a service to the public, you will need public liability insurance. Public liability insurance protects your business from legal action by your clients and service recipients. It is a way to ensure that you and your family are protected if your client is hurt or suffers damages during their interaction with your business.
What does Public Liability Insurance typically cover?
Public liability insurance covers compensation for injuries and damages to a third party that may be affiliated with your business. This includes service recipients, customers, clients, contractors, and anyone else who may be affiliated with your business. Some examples of the types of harm covered from public liability insurance may include:
1. Accidents in a retail store
2. Business-related injuries
3. Employee-related accidents
4. Damage to property
5. Cover for the wrongful act of the insured
The list of coverages under public liability insurance is extensive. Public liability insurance is required if your business regularly serves the public, and it is especially important if you have employees.
If you are a sole trader or freelance business and you are not sure if you need public liability insurance, this article is a great starting point.
What is Professional Indemnity Insurance?
Professional indemnity insurance is a type of insurance coverage that protects your business from legal action. When your business is providing a service to the public, it is likely that there may be lawsuits and legal action taken against your business. This can be particularly risky if your business provides a professional service like a photographer, a tradesperson, a writer, a graphic designer, an online retailer, or any other business that provides a service to the public.
Conclusion
The reality is that these lawsuits are becoming more and more common. Business owners need to protect themselves from legal action taken against them. If a sole trader or freelance business does not have professional indemnity insurance and a claim is made against them, they could be completely responsible for the damages caused. These costs can be crippling to a business and make it difficult to operate.
When you are a sole trader or freelance business, you work hard to provide a service to your clients. You have a passion for what you do, and you put in long hours to guarantee your clients the best possible service. The last thing you need is to have to worry about a lawsuit that could be taken against you. This is why professional indemnity insurance is so important. It protects you from the risk of being sued by your client and is a way to ensure that if you are sued, you will be able to pay for the legal fees and damages incurred by your client.
If you are a sole trader looking for business insurance, come to New Wave Insurance! We help you find the right insurance for your assets, business and vehicles. Call (07)55041999 today!