The cost of insurance depends on lots of different factors – such as what your business is, where it’s located and how many employees you have.
With that in mind, it’s tricky to give an average cost but it’s important to realise that cheap self-employed business insurance policies don’t always represent the best value.
A policy should always reflect your business needs and at the very least include:
- Public liability insurance for self-employed workers – this covers the cost of compensation and legal fees if a member of the public takes you to court, for example if a client tripped and fell in your home during a business meeting.
- Professional indemnity insurance for self-employed workers – covers compensation and legal fees if a client believes your work has resulted in them making a loss, for example if you’re an accountant and your miscalculation directly led them down an unprofitable route.
- Product liability insurance – covers compensation costs and legal expenses if a product has caused a customer injury or damaged their property.
When you’ve thought about the essentials, consider the levels of cover you might need and whether there are any particular expectations within the industry you’re in. For instance, if you work with local councils (or would like to) then you may be expected to have a minimum level of public liability cover as required or advised by the council or professional body.
If you’re an architect, accountant or surveyor then some professional organisations and trade bodies may also expect you to have a certain level of professional indemnity insurance before you can join.