Becoming self employed can be both exciting and daunting. Whatever your chosen profession and however good you are at what you do, there will be many tasks that you will need to undertake that you will not have had to consider when you were an employee. For example you are now responsible for sorting out your National Insurance and Income Tax. You can visit the government website here to understand your obligations. Bear in mind that whilst you would like to focus on selling and providing the service that you offer, there will be things you need to spend your time doing that you may never have done before or even things you don't like. Probably insurance....
Do you know what business insurance you need? There's a vast range of different types of insurance available to you, some which are required by law and some that aren't but still need to be considered. If you are taking on staff, for example, the law says you must have employers liability insurance in place. Some of your clients will also insist you have insurance such as professional indemnity in place before they will consider doing business with you. Here are a few examples the types of business insurance you'll need to think about:
Professional Indemnity Insurance
PI insurance is a mandatory requirement for some professions (law, accountancy and architecture for example) whilst anyone who offers professional advice to their clients should consider having it. Do check through the policy before purchasing so you are clear on the excess (if any) that you would have to pay in the event of a claim, along with ensuring that it covers you retrospectively for previous work. PI is usually a specific requirement when tendering for a large company or governmental contracts.
Public Liability Insurance
Public Liability covers you against claims for injuries to members of the public as well as damage to property which belongs to another business or individual. Do customers and suppliers visit you at your business premises - whether that is an office or at home? If so, consider purchasing Public Liability Insurance. Whilst cover of £1 million should be sufficient for the majority of small businesses, do check if a potential customer stipulates a higher level of cover is required before they will award you the contract.
Employers Liability Insurance
Be aware that employers liability is a mandatory insurance if you take on staff.
Other types of insurance
You should consider if you require other types of insurance for your business, depending on the nature of your work. Office contents insurance, for example, particularly if you have a standalone office. Cyber insurance is another consideration for those who deal with sensitive data or are working with client databases. All of these covers are available as options when you purchase cover through our website. Each option will appear when you go through the quotation process. Good luck and call us on 0345 251 4000 if you need some expert advice.