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Everyone knows that big businesses need insurance. But what if you’re working for yourself? Sole traders don’t face all the same risks as corporate giants – but operating as an individual has its own set of risks that can be just as bad for business. In this article, we’ll let you know these key risks, and what are the available options for business insurane for sole traders.
Accident and illness
As a sole trader, you work for yourself. This means you don’t have access to the same safety-net as an employee. Because you’re not considered to be an employee, you can’t take out Worker’s Compensation Insurance to protect yourself. What’s more, if you’re unable to come to work there is no one who can keep your business running without you. A troublesome injury could mean a serious or crippling loss of income with no recourse.
Fortunately, you can take out insurance to help protect you from financial difficulties if you find yourself unable to work. Personal Accident Insurance keeps you covered against injuries you may sustain in the work place, and helps protect against loss of income if you are unable to work.
Product and public liability
Product and public liability can be two of the most expensive risks that businesses face, and the situation for sole traders is even more perilous. As a sole trader, you are not incorporated, and this means that you are personally liable for any public or product liability you incur. This could mean you have to pay tens of thousands out of your pocket! For this reason, it is vital you take out product and public liability insurance to cover you if a third party becomes injured in the course of your business.
Hiring others
As a sole trader, you’re used to working alone. But there are times you need to hire others to get the job done. When you hire other people, they may be legally considered employees. If they are, you will be required to take out Worker’s Compensation Insurance to make sure those you hire are covered in the event of workplace injury. The exact cover you need will depend on the state you trade in. Different states have different legislation, so make sure you’re getting the cover that meets the legal requirements of your state.
Basic protection
On top of the unique considerations, we’ve mentioned above, you will still need to take out insurance to cover yourself against risks that can affect any business. When you’re working for yourself, it’s important to be protected. Storms, property damage, theft and trading interruptions can all cause your business significant loss. An option such as a small-business pack may provide the perfect solution to keep you covered against major risks so you can breathe easy. Make sure you talk to your insurance provider to find a policy that meets your needs.
Brought to you by Allianz Insurance
