Sole Trader Insurance

Whether you have set up as a carpet cleaner, chimney sweep, contract cleaner, decorator, gas fitter, gardener or painter, you will be responsible for all liabilities should anything go wrong so taking out sole trader insurance is vital.

Buy a sole trader insurance policy  that matches your specific tradesman needs and 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 assist you.

Whether you are a heating engineer, a builder or any other trades person, you will need to consider how best to protect your business and personal assets, including your family home, against the risk of being sued or a claim being made.

As a sole trader, your assets are more exposed to risk because your liability is unlimited, meaning that you need to take as many steps as you can to protect yourself and your business. One of these is having 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 and 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.
• 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 relating to the nature of your business are not excluded.
• Check the key facts are correct, such as when cover commences and 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 also in respect of claims you might make. You are taking out your insurance to provide cover in the event of a claim and 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 is not necessarily the best option. Don’t be blinded by price. Make sure you carefully consider the cover provided 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.

Take your time and get the best sole trader insurance to meet your needs.

Last updated - 01/2010

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