Seven Things To Expect When Attending What Business Insurance Do I Need As A Sole Trader | what business insurance do i need as a sole trader

If you're a sole trader or an entrepreneur looking for business insurance that best meets your needs, then you'll want to read this article. In particular, we'll discuss the two most common forms of business insurance – risk management and assurance. We'll also discuss some of the more obscure types of business insurance available – although these too are useful in many ways. Finally, we'll review some of the options open to you as a sole trader or business owner when it comes to business insurance. After reading this article, you should be better informed about what business insurance do I need as a sole trader or business owner.

Businesses face unique risks throughout their day-to-day operations – from customer fraud to product recalls and legal liabilities. To protect themselves from these potential problems, businesses need to have both an assurance and risk management policy. What is the difference between these two different policies?

Insurance that focuses on risk takes the form of a risk management policy. Rather than attempting to offset every possible loss, the company secures its assets with a set premium. As a business owner, you will pay this premium on a monthly basis. Should you ever have to make a claim against the policy – for example, if your product causes an injury, this claim will be paid by the business. While you will lose your cash value and your earnings, you can still continue to run your business as usual.

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Conversely, a risk management assurance policy takes the opposite approach. Instead of aiming to avoid potential losses, the company aims to reduce the risk to the point where there is virtually no risk at all. The way in which this works is simple. If a customer does not purchase your product, but rather buys something else, the company has chosen to mitigate the risk by issuing a refund.

As I mentioned earlier, the aim of both types of risk management is to protect your business by reducing the risk you are exposed to. However, there are differences between the two. The type of assurance policy which can be bought by a sole trader is called 'business interruption' insurance. This type of policy provides cover for any interruption to the supply of your business such as flooding or storm damage. It is also worthwhile remembering that this type of policy only provides protection whilst your business is closed. You will have to take out standard business insurance for your premises when your business is open.

Another type of assurance policy which can be taken by a company is known as 'shop insurance'. This protects your business against theft and loss during the period when your premises are not in use. Again, you will need to take out standard business insurance for the duration of your business premises being unoccupied. For example, if you shut your business down because you are relocating to a different area, your company will not be covered for the period your premises are unoccupied, so you may consider this type of assurance policy. In addition, this type of insurance does not typically provide cover for liability if a member of staff suffers an accident whilst at work.

What Business Insurance Do I Need? - what business insurance do i need as a sole trader

What Business Insurance Do I Need? – what business insurance do i need as a sole trader | what business insurance do i need as a sole trader

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Insurance for Sole Traders – Everything You Need to Know – what business insurance do i need as a sole trader | what business insurance do i need as a sole trader

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Insurance for Sole Traders - Everything You Need to Know - what business insurance do i need as a sole trader

Insurance for Sole Traders – Everything You Need to Know – what business insurance do i need as a sole trader | what business insurance do i need as a sole trader