Sole Trader Insurance

As a sole trader you are what many people dream of being - your own boss. And with this privilege comes the ability to adapt to changes in your business with minimal paperwork, along with the knowledge that the buck stops with you.

Whether you have set up as a carpet cleaner, chimney sweep, contract cleaner, decorator, gas fitter, gardener or painter, you must register with the Inland Revenue as self-employed. You can either operate under your own name or with a registered business name and as a sole trader you will be responsible for all debts and liabilities. It follows that as soon as you decide to become a sole trader you need to get a suitable sole trader insurance policy.

As a sole trader you will be responsible for all liabilities should anything go wrong; taking out sole trader insurance is vital. Your business success will in part be determined by your confidence and positive outlook and on the face of it you may prefer not to consider worst-case scenarios when planning your business activity. This must be considered naive and not good business sense. Think positively but consider your business risks as well.

Finding a sole trader insurance policy, matched to your specific tradesman needs, means you will have insurance cover to protect you against identified business risks. You can then place all your efforts into building your business and worry less about things that might go wrong.

It is advisable to carry out a comprehensive assessment of your business risks at the outset to help you secure the correct insurance policy. You may be happy to do this yourself or if you feel you need help or advice then an insurance broker will be able to help you.

As you assess your insurance needs, you may discover that you need to take out tradesman liability insurance, depending on your business setup and trade. But regardless of whether you are a heat engineer or a builder, you will need to consider how best to protect your business and personal assets, including your family home, from the risk of being sued or a claim being made. As a sole trader the assets that you own are more exposed to risk because your liability is unlimited, so you need to take as many steps as you can to protect yourself and your business. One of these is sole trader insurance.

There are a number of points to consider when searching for the best sole trader insurance quote:

• It is vital that you disclose to the insurer everything about your business that may be relevant, that this information is accurate and kept up to date, otherwise your policy may not be valid.
• Be careful to insure your assets for their current replacement value. If you are not sure of the replacement cost, you may need the services of a qualified valuer to establish what your assets are worth
• Be sure to read the policy cover in detail and be clear as to what is and what is not covered under the terms of the sole trader insurance policy. Ensure that specific activities related to the nature of your business are not excluded
• Check the key facts are correct, such as when cover commences, how much liability cover is included
• Make sure that your sole trader insurance cover offers a straightforward and prompt service, not just for the purchase in the first place but importantly in respect of claims you might make. You are taking out your tradesman insurance to provide cover in the event of an insurance claim,it is therefore critical that the insurer provides a high quality, prompt claims handling service

Price is obviously important but remember the saying 'you get what you pay for'. The cheaper option may be the best, it may not. Don’t be blinded by price, make sure you carefully consider the cover provided and match this against what you need

As a sole trader cash flow is no doubt important. You may need to use a provider that offers monthly instalments for your premium. Consider interest costs though.

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To talk to an expert in your area and get a quote.