Business Insurance For IT Contractors And Sole Traders
Every business owner needs to be aware of all the challenges and risks that come with every entrepreneurial journey. Learning how to overcome those challenges can significantly increase a business owner’s chances of success. The best way to protect a business against risks is to purchase insurance policies to cover those risks. Buying the right policy from the right insurance company will help to ensure the business has a better chance of success. If you run your own business, be sure to get business insurance for sole traders.
Types of Liabilities
There are many types of liabilities that every sole trader should seek to get coverage. This includes:
i) Property Loss
Sole traders have machines, inventory, computer equipment, furniture, and fittings among other types of assets. These assets can be damaged in fire incidents, burglaries, theft, natural disasters, flooding, and vandalism among other things. To protect yourself and your business from incurring losses when your business property is lost or damaged in any way, you must purchase a business insurance policy that offers commercial property coverage. The ideal policy should cover the full value of your business property against all kinds of risks. Be sure to read the terms and conditions of the policy document before deciding to commit yourself to any insurance policy.
ii) Injury Lawsuits
It is important to note that getting sued in court is a real risk in business. Disgruntled customers, employees, shareholders, and members of the public may decide to file a lawsuit against you for one reason or another. Whether the lawsuit is merited or not, you may be forced to spend thousands of dollars in legal fees to fight the lawsuit. Similarly, if you lose the lawsuit, you will be forced to pay tens or hundreds of dollars in damages awarded by the court. By purchasing a public liability or general liability insurance policy, you will be able to protect yourself and the business from these costs. Please note that sole traders usually absorb all the liability as they are not indistinguishable from their business.
iii) Work-Related Injuries
Workplace injuries are commonplace in most businesses. An employee can slip and fall or get injured in any other way while discharging their duties. The cost of medical treatment, pain and suffering experienced, missed wages, and rehabilitation can be too much for one person to bear. To ensure injured employees do not file an injury lawsuit against you and at the same time ensure that they are well-taken care of, be sure to purchase workers’ compensation insurance. The ideal worker’s compensation insurance policy should cover every possible scenario that may lead to injuries. Workers’ compensation insurance usually requires employees to forego their right to sue their employer for injuries in exchange for medical benefits and wage-replacement benefits.
iv) Auto Accidents
Sole traders also own or lease trucks and vans for use in everyday operations. Since these vehicles can get into an accident and cause huge losses, you must purchase commercial vehicle insurance to cover both the vehicle and the goods it carries. This means that you’ll be compensated for any financial losses you incur if your vehicle is involved in a carjacking incident, auto crash, vandalism incident, or theft among other things.
What to Consider When Purchasing Auto Insurance
You must consider a variety of factors before purchasing auto insurance. First, check the types of liabilities covered. Go to the inclusion clauses of a policy to see what is covered. Be sure to also check the exclusion clauses to see what’s not covered. Secondly, check the extent of liability coverage. You want a policy that offers maximum coverage.