Members of my Facebook group often ask whether they should take out business insurance and because the information out there can be complicated and hard to understand, I wanted to provide you with a summary of the various different policies so you can make an informed decision for yourself. Many Sole Traders I know don’t have any insurance, but should you?
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 will protect you against a client’s compensation claim for negligence or mistakes and covers any legal costs.
Professionals who may need this insurance include IT Consultants, Architects, Business Management Consultants, Coaches, Engineers, Project Managers and Financial Advisers.
This is the insurance I have and if you want peace of mind (especially if you post on social media for your client), this is the one you should get.
Policy Bee’s Virtual Assistants’ Professional Indemnity Insurance package came highly recommended by my Facebook group and are also the insurance company I use myself.
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.
Which one most VAs have and who they use
A recent poll of working VAs in my Facebook group revealed that most of them have professional indemnity insurance and some of them also have public liability, cyber and data risk insurance.
The most popular insurance companies mentioned were Hiscox, Policy Bee, and Markel. Monthly premiums seem to range from £9 to £23 a month.
* I am an affiliate for Policy Bee which means I get a small commission if you decide to buy from them. Please note that my reputation is extremely important to me and I only recommend products and services that I know will help you achieve the things you want to do. I also use Policy Bee myself and they only asked if I would like to be an affiliate after they noticed a lot of traffic coming from my site.