What insurance do I need if I am self-employed?

What insurance do I need if I am self-employed?

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2023 February 23

Having your own business is a big undertaking. There are lots of things to get to grips with such as your tax obligations, ACC, invoicing, and insurance.

Here’s a brief summary of what you may need to think about when considering your insurance requirements, depending of course on the type of business you are running.

Working from home and/or out on the road?

If you are operating your business from home, you need to check with your home and contents insurer to make sure this doesn’t negatively impact your cover.  Some contents insurance policies provide cover for business equipment used at home, but please make sure you check it’s the right cover for you. 

It’s also worth thinking about your motor vehicle cover if you use your car for commercial use. If you have a private vehicle policy and damage your car while out running business errands, your claim could be declined, and you could face a hefty repair bill.

Also, if you are reliant on a vehicle to carry out your business and you have an accident, which results in your vehicle being off the road, you may have an option to cover the cost of a hire vehicle whilst yours is being repaired. 

If you’re on the move, make sure you have cover to protect you if you are the victim of theft.  Laptops and tools are regularly stolen from vehicles.

Operating from a commercial premise?

You need to make sure you have cover to protect your business assets, and that you have the right cover to continue your operations.  Buildings, plant and equipment should be insured so that you can reinstate those assets.

What if I can’t continue to operate for a period of time or something happens to me?

You can also insure your loss of profit following damage to your insured building, plant or equipment.  It’s important that you structure cover to suit your specific business activities.

Whilst it’s important to insure your physical assets, the most important asset your business has is you.

Would your spouse or partner be able to continue to pay the mortgage if you passed away? How would the business keep running if you were ill for an extended period? No one likes to think about these things but it’s important that you do.

At a time of considerable emotional stress, such as when someone passes away or is terminally ill, financial worries can become overwhelming. Having life cover helps put your loved ones in a stronger financial position and creates a sense of security for both you and for them.

Do I need liability insurance?

Liability insurance can be complex.  If you are in business you will need liability insurance - what type of insurance depends on the nature of the business you are operating.   

No doubt you use a smart phone and/or a computer, making you susceptible to viruses, scamming and hacking. Cyber insurance helps cover your liability here – especially if you end up having a data breach or being held to ransom by a cyber-criminal.

Who can help me? Anything else to think about?

Our brokers at ICIB BROKERWEB are experts in designing the right insurance at the right price for you so why not drop us a line.