Insurance Made Simple: A Practical Guide for Self-Employed Business Owners

When it comes to sorting the administrative details out for your business, there are some elements that just feel beyond painful. One of those is ironically insurance, given that it is supposed to be something that gives you absolute peace of mind that your business is safe in the event something unexpected should occur. That said, it doesn’t need to be the headache that it so clearly is, and it can be a lot easier than you might think.

As far as self-employment goes, we’ve seen a steady increase over the last couple of decades, though COVID-19 brought with it an inevitable decline in self-employed people in the UK. That said, with COVID seemingly in the rear-view mirror, we are seeing some signs of a recovery regarding the figures relating to those that choose to work for themselves. This is something definitely worth celebrating, but also the perfect opportunity to consider what makes a business successful, but above all bulletproof in the face of adversity.

Of course, there are countless things that make a business successful – above all, a steady income and a solid customer base. But just how reliable are those things when it comes to maintaining the business? What if something goes awry along the way? Can you afford not to take out insurance to ensure your company’s future? These are all questions well worth asking yourself when you think about the longevity of your business.

Think about yourself

It goes without saying that if you weren’t the kind of person to take risks, you wouldn’t have a business in the first place, though of course there is an element of caution required. This insurance tends to fall into two categories; personal and business insurance. That’s not to say there aren’t other kinds of categories, but these are the two primarily worth focusing on.

The priority for you should always be personal, so life insurance is a necessity, especially if you have a family that depends on your income. As well as this, you should look for insurance in the event of something unexpected happening – for example, illness or injury. If this prevents you from doing what you do best, then can you really afford to carry on without a requisite plan in place?

Income protection is also something to really think about, and this does naturally tie in with thinking about your business. But if anything should go wrong with that business, it’s always good to know you have a failsafe plan in place.

Taking care of yourself and your family is paramount, as without this foundational step, business success would be nigh on impossible regardless. Even having said that, your health and wellbeing, as well as that of your family, are much more important than any success in business.

Then think about your business

If you have the foundation in place, then there’s a good chance success for your business will generally follow suit, but of course there are many important things to consider for the safety and security of your business in the longer-term future. As mentioned, income protection is important, but liability insurance should be a priority.

Public liability insurance pays out in the event of any error from your business that results in injury or damage to a member of the public. An example of when this might be required is when someone slips due to a spillage within your commercial property. In many cases, customers may wish to see proof of insurance when doing business with you.

As well as this, professional indemnity insurance for bookkeepers is an absolute must-have. Professional indemnity insurance (PI) offers protection in the event that a customer or client claims that they have received poor advice that has resulted in loss of profits or harm to their own business. Much like with public liability insurance, you may feel that it’s unneeded, but it’s a vital safety net in any case.

Then we come to some of the more practical and tangible kinds of insurance, such as buildings and contents insurance, equipment insurance, and goods-in-transit insurance. These are all fairly self-explanatory, but they are crucial in the event of a fire or a burglary of your premises. As with most insurance, hopefully you won’t need it, but it’s always there if you do.

In any case, insurance should be a priority if you are self-employed, because life is highly unpredictable at the best of times. We only have to look at the pandemic, the cost-of-living crisis, and countless other political maelstroms to recognise that insurance matters big time.