Business insurance for sole traders
Working for yourself can bring fantastic rewards. But it can also bring risks.
Whichever way you spin it, you're in charge. On top of your day job, you could also be responsible for looking after marketing, accounts, sales, ordering stationery, equipment maintenance, cleaning, insurance…
But it doesn’t matter how organised you are, things can go wrong. Accidents happen, a client complains, or your equipment gets damaged or stolen. And you’ll need time and a large bank balance to sort it.
That’s where sole trader insurance comes in. It gives you a team of experts on hand to help smooth out a crisis and fight your corner.
Sole trader insurance can (among other things) pay legal costs and compensation if a client complains the job isn't A* quality. Or if you break a priceless possession or injure a client. It can also cover your kit for loss, damage, or theft.
It offers the support and security you need when everything’s on you.
Sole trader insurance FAQs
Who needs sole traders’ insurance?
Being a sole trader means you’re running the show on your own. So, having back-up in the form of insurance is a pretty excellent idea!
It doesn’t really matter what you do - from the building trade to hairdressing, and everything in between. All jobs carry risks of some kind.
And if you’re a sole trader, chances are, you don’t have a wealth of legal knowledge or a bottomless gold pot at the end of your business rainbow.
That’s why paying out a little each month for sole trader insurance is a wise move. It gives you the financial protection you need to ward off sleepless nights.
What insurance do I need as a sole trader?
That will all depend on what your business does.
Most sole traders will need professional indemnity insurance to deal with claims you didn’t do your job properly. Or public liability insurance for slips, trips, and other damaging mishaps. Often both.
If you have your own work premises, be it a yard or a salon, some commercial property insurance will be needed, and maybe stock insurance too. If you’re on the move a lot, portable equipment insurance is a good idea.
For anyone working online, in any capacity, cyber insurance is worth considering too.
And don’t forget, even if you’re a sole trader, if you employ anyone it’s the law for you to have employers’ liability insurance in place.
What does sole trader professional indemnity insurance cover?
When you’re the boss, the buck stops with you. And if someone says the work isn’t up to scratch, it can be a problem.
You give someone bad advice, or a job doesn’t go to plan, and you could end up with an unhappy client who says they’re out of pocket.
Sole trader professional indemnity insurance compensates your client and pays for a specialist solicitor if you need one.
What is sole trader public liability insurance and do I need it?
Accidents happen. It doesn’t matter how careful you are.
Spill a coffee over a client’s laptop, wreck their antique furniture or leave your toolbox out and they trip and injure themselves, and it can cost you. If your client says you’re liable, you’ll face a bill.
Legal fees, court costs, and compensation can run into thousands. Sole trader public liability insurance (PL) will cover all the bases. Even if it isn’t your fault, PL will help defend you.
How much does sole traders’ insurance cost?
Because sole traders’ insurance requirements differ so widely, we can’t give you a straightforward answer to that one. But we can help you build a better picture.
It might seem pretty obvious, but we’ll point out anyway, that the more different types of insurance you have, the more you’ll pay. So, think carefully about what you need.
Having said that, it’s always better to be over-insured than under-insured. If your level of cover is below what a claim costs in legal fees and compensation, you could still end up paying plenty from your own pocket.
If you speak to a broker, they can help you decipher exactly what you need. Working to get you a policy that’s both affordable and ticks all the boxes. To get an idea of cost, you can get a quick quote online.
Why choose us for your sole trader insurance?
You have your trade. And we have ours. (It’s business insurance, obviously.)
We don’t just sell you insurance, we’re recognised by the Financial Conduct Authority (FCA) as being qualified to give you advice too. So, you can be sure you’re getting the right policy for your business.
We promise that any advice we do give you will be jargon-free. That’s kind of our thing, making tough insurance talk a thing of the past. So feel free to give our team of expert advisers a call.
Don’t want to take our word for it? Head to our customer feedback page. We’re platinum-rated you know.
FAQs
You can usually choose between £50,000 and £5 million of professional indemnity insurance. Your regulator, professional body or client contracts may tell you the minimum amount you need. Think too about the scope of your projects and the potential compensation demand if something went wrong.
How to calculate pi insurance? ›
There's no exact formula for calculating an accurate level of PI cover and many professionals do not always appreciate or even imagine the scale of the worst-case scenario risks to their business.
Do traders need insurance? ›
Yes. The need for public liability insurance is not determined by your turnover; it depends on whether you come into contact with the public. However, many insurance providers will consider your turnover when calculating your insurance premium. If you have a low turnover, your premium is likely to be lower.
What insurance do I need as a self-employed consultant? ›
Levels of Coverage
The amount of insurance you will need will depend on many factors including the type of clients you work with and the industry you are in. However, expect most clients to require a minimum of $1,000,000 in general liability insurance and another $1,000,000 in errors and omissions coverage.
How many decimals of pi is enough? ›
It turns out that 37 decimal places (38 digits, including the number 3 to the left of the decimal point) would be quite sufficient. Think about how fantastically vast the universe is. It's certainly far beyond what you can see with your eyes even on the darkest, most beautiful night of sparkling stars.
How many digits of pi are enough? ›
Using Decimal Digits of Pi Practically
In real-life applications, when we consider a scale of 1km diameter for a circle, errors of the order of 1cm or lesser are more than acceptable in most cases. So, I would say that 6 decimal digits of Pi are more than sufficient for most real-life applications.
What does PI insurance cover you for? ›
Professional indemnity insurance protects you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered.
What is the limit of PI in insurance? ›
The limit of indemnity under a Professional Indemnity Insurance policy is the maximum amount an insurer will pay in respect of any one claim. In some cases, this will also be the maximum an insurer will pay in aggregate (or put another way, in total) during the policy period.
What is the limit of indemnity in PI insurance? ›
What is Limit of Indemnity? The Limit of Indemnity (LOI) is the maximum amount the insurer will pay under a policy during the policy period. Legal costs may be included within the Limit of Indemnity or may be covered as an additional amount, depending on the policy purchased.
What qualifies you as a trader? ›
You must trade frequently and regularly.
This is, by far, the most challenging criterion to hit. But what does “frequently” mean, exactly? The stock market is open 252 days per year. The IRS states that you must actively trade in at least 189 days of the 252 days.
The Securities and Exchange Commission (SEC) says that day traders "typically suffer severe financial losses in their first months of trading, and many never graduate to profit-making status. Securities and Exchange Commission. Day Trading: Your Dollars at Risk.
Can I become a trader with no money? ›
Trading is often viewed as a high barrier-to-entry profession, but as long as you have both ambition and patience, you can trade for a living (even with little to no money). Trading can become a full-time career opportunity, a part-time opportunity, or just a way to generate supplemental income.
How does insurance work for the self-employed? ›
Generally, if you run your own business and have no employees, or are self-employed, your business won't qualify for group coverage. You can purchase qualified health coverage through the Marketplace for individuals and families. With an Individual Marketplace plan, you can: Find coverage for yourself and your family.
What insurance do you need for a 1099? ›
Do 1099 workers need insurance? In general, 1099 workers should have general liability insurance. This kind of coverage protects you if you're accused of damaging someone's property or causing them injury.
What is self-employed insurance? ›
If you run a business that produces income and has no employees, you're considered self-employed. You can buy health coverage through the individual Health Insurance Marketplace ®. You're not considered an employer only because you hire independent contractors to do some work.
How many pi coins does the average person have? ›
An average of 688 Pi per person
Of course, early adopters and super-active clickers likely have balances far exceeding the average.
Is pi likely to be worth anything? ›
Therefore, our Pi coin price prediction estimates a possible low of $0.4, a high of $1.2, and an average price of $0.8 by the end of 2025. This would equate to a 100% increase from its average 2024 price.
Can pi be worth anything? ›
Will PI ever be worth anything? It might be, but only when its mainnet comes out and it comes onto the open market. Even then, how much money it will be worth is a matter of pure speculation.
Is 3.14 enough for pi? ›
In just about every physics class, we use 3.14—two digits—to represent pi.
