What business risks do the self-employed face

Starting a new business? Make sure you’re covered.

Posted on 30th September 2021 by

What business risks do the self-employed face

Starting a new business is a big step for anyone, whether you are starting out on your own for the first time or whether you are experienced in starting and growing new businesses.

After what is typically months of planning and number crunching you are ready to begin with your new business venture, but a common oversight for small businesses and freelancers starting their own limited company, is ensuring that a comprehensive business insurance policy is in place from the outset.

It is important to bear in mind that from day one you are at risk of a liability claim being made against you. An insurance claim in the early days of your fledgling business could spell disaster and put you in financial difficulty if you’re not covered.

We’ve dedicated this article to highlighting the key business insurance policies that you should consider to protect your new business from the outset.


Which insurance policies will help to protect my new business?

There are a number of business insurance policies available for start-ups that will give you the peace of mind that, if a project doesn’t quite go to plan, you will be covered.


Professional Indemnity Insurance

Widely regarded as the most essential business insurance type, professional indemnity insurance will provide cover for allegations or claims made against you for negligent work or advice. If you are starting your own business it is important to ensure you carry this type of insurance before you undertake any work.

Freelancers, contractors, consultants, teachers, designers and marketers are among those professionals who should give consideration to this insurance policy. Professional indemnity insurance is regularly stipulated in contracts of work by clients before they will award you the contract. It is also required by many professional bodies as part of membership.

To arrange cover in just a few minutes, simply click the quote button.

Start your quick online insurance quote here


Public Liability Insurance

Essential for any business that comes into contact with members of the public. This includes clients visiting your premises and you visiting theirs. If you cause any damage to a third-party or to their property, then public liability insurance will provide cover for the legal expenses and costs incurred in defending the claim. The policy will also provide cover for the compensation awards and damages if you are unsuccessful in defending the claim.


Employers’ Liability Insurance

If your start-up business will be employing staff, then you will need this type of insurance by law. It is a legal requirement to carry a minimum level of £5 million of cover in the UK. The employers’ liability policy provides cover for your employees for claims due to injury or illness as a result of the work they do while in your employment.


Directors & Officers Insurance 

If you are starting your own business it is important to be aware that you will become a company director, as such you may be held personally responsible for your business actions and will have unlimited personal liability. Only shareholders have limited liability.

This important cover can provide protection against potential claimants including;

  • Creditors
  • Employees
  • Regulatory bodies (including HSE and HMRC)
  • Customers/suppliers.

Directors & Officers insurance protects your personal assets in the event of a claim. Even to defend an action can prove to be extremely costly. Can you afford to be without the cover?


Business equipment and office insurance

Whether you work in an office or from home, this insurance will cover your office contents including computers, electronic office equipment, furniture, stationery and documents whilst within your property.

These items owned by the business would not be covered under a household insurance policy. Your contents are covered for all risks which includes but not limited to theft, fire, water damage from burst pipes and malicious damage.

At Caunce O’Hara, we also offer portable equipment insurance providing cover for when you are working away from your own premises or when based at a client’s site. The insurance will cover accidental physical loss, including theft or damage.

Business equipment insurance is offered as part of our business combined liabilities insurance policy. For details please call 0333 321 1403 today.


Business interruption insurance

This type of business insurance has been widely publicized recently due to the negative effects of the Coronavirus pandemic on businesses. Business interruption insurance will cover against loss of income and/or additional expenses incurred to continue trading due to an unforeseen incident that prevents you from using your usual place of work. This could be due to fire or flood damage which causes you and your staff to be displaced.


Making a claim on your insurance

It is important to inform your insurer straight away if you are aware of any circumstance when you might be subject to a claim. The sooner you notify your insurer the sooner they can help you.

Caunce O’Hara can provide instant cover for your start-up business. Simply call us today on 0333 321 1403 for a quote.

Start your quick online insurance quote here


Related Articles:

Key points to consider before starting your own business

Freelancers Guide to Professional Indemnity Insurance 

A simple guide to contractor insurance

Why freelancers need professional indemnity insurance 

What business risks do I need to be aware of if I am self-employed?