At Wealthy Student we know some of our readers are budding entrepreneurs and if you’re making some cash off your own back then good for you. There are many great things about being self employed, but you may not realise that doing so opens yourself up to personal liability if you’re not covered.
Over recent years, there has been a sharp increase in the number of people who are self-employed in the UK. In fact, according to the Chartered Institute of Personnel and Development, the number of self-employed has risen to record levels, helping to counteract some of the damage resulting from job losses during the recession.
Self-employment was once viewed as very risky, but in today’s fragile economy, where job losses have become commonplace, self-employment has become increasingly appealing. With greater control over the amount of work you do and how much you earn, you can reap the financial benefits from self-employment. However, you also need to ensure you have the right protection in place.
Taking out the right insurance plan
It is important to make sure you have appropriate and adequate business insurance if you are self-employed, as this can provide both peace of mind and financial protection. You will find a number of good, comprehensive insurance plans available that can suit people working in a wide range of trades on a self-employed basis.
The most important features of self-employed insurance plans will vary based on the type of business you are in. However, some of the key features that you should look for include the following.
- Public liability coverage: This is a feature that provides financial protection if you find yourself on the receiving end of a claim due to injury or damages sustained by a third party. These injuries or damages may have been the result of issues such as error or negligence.
- Product liability: If you provide or sell products as part of your self-employed business, this is an important type of coverage. This can provide financial protection in the event of claims arising due to injuries or damages resulting from the use of your products.
- Business interruption insurance: If you are self-employed, you are reliant on your ability to conduct business in order to earn your living. Business interruption cover can provide protection from financial losses resulting from unforeseen circumstances.
- Property damage: This covers damage or accidental loss of tools and equipment, which are items that you probably rely on in order to conduct your business. This can therefore prove invaluable to those who would not be able to operate if something happened to their equipment or tools.
These are just a few of the important features you may want to consider for your self-employment insurance. However, you need to make sure that before you make any decisions, you assess the needs of your self-employed business. This includes assessing the type of work you do and the greatest risks you face. By looking at these areas, you can better determine the type and level of coverage you will need.