Do you need insurance?

Do Virtual Assistants need insurance?

People often ask whether they should take out business insurance and, although I usually direct them to various online articles (because well, that’s why Google exists!) I thought I should cover it on my website too. Many Sole Traders I know don’t have any insurance, but here’s a summary of the different types so you can make an informed decision for yourself.

Public Liability insurance

This protects you if a client suffered personal injury or property damage because of your business. It covers the costs of subsequent legal expenses or compensation claims and is used by businesses that interact regularly with customers.

You may want this if you go to peoples’ offices or homes a lot and think you may accidentally burn them down.

Professional Indemnity insurance

This protects you against negligence or mistakes. Claims can arise from a client who is unhappy with the professional service or advice you have provided and feel they have suffered a financial loss as a result. It could protect you against a client’s compensation claim for negligence or mistakes and cover any legal costs.

Professionals who may need this insurance include IT Consultants, Architects, Business Management Consultants, Engineers, Project Managers and Financial Advisers.

It is highly unlikely anything you do would destroy a clients’ business but if you want peace of mind, then this is the one to get.

Employers’ Liability insurance

You only need this if you employ people but you don’t need this if your Limited Company has just one employee, who owns 50% or more of the share capital (i.e. you). If you’re a Sole Trader and do not employ anyone, or you only employ close family members, you should also be exempt.

Products Liability insurance

You only need this cover if your business involves the sale of products to members of the public.

If you do want to get insurance and are still not sure which one to choose, I recommend you do some more research or ask HMRC or an Accountant for more advice on which type you should get.

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2 Comments

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Do you mind if I quote a few of your posts as long as I provide credit and sources back to your site? My blog is in the very same niche as yours and my visitors would really benefit from some of the information you provide here. Please let me know if this ok with you. Thank you!

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