Insurance and the entrepreneurial generation
PUBLISHED: 08:51 28 February 2019 | UPDATED: 08:51 28 February 2019
Setting up as self employed? Insurance should be top of your to-do list.
With an increasing percentage of the population choosing to become self employed, it could be assumed that this is reflected in the uptake of relevant insurance policies. However, alarmingly this is not the case. As of September 2018 there were 126,600 self-employed people in East Anglia*.
Self employment nationally has increased from 3.3 million to 4.8 million over the last 16 years*, yet many are not covered for the associated risks.
Recent research by insurance broker A-Plan shows that 50pc of self employed people are perplexed as to which policies are required, and with options such as Public Liability Insurance, Professional Indemnity Insurance, Employers’ Liability Insurance, Online Retailers’ Insurance and Business Interruption Insurance, it really is not difficult to see where this confusion stems from.
“There is little advice out there as to which policies are required for which type of businesses, with many sites allowing online policy purchases with no prior consultation or advice,” says Krushal Patel, manager at the Norwich branch of A-Plan. “This confusing area is one where expert advice can be invaluable to ensure what cover consumers need is safely in place.”
The lines between employment and self employment are becoming increasingly blurred, with many people working from home for businesses but still considered self employed.
According to A-Plan’s Insurance Spotlight Report, 2019, 42pc of people do not realise that it is up to them to put public liability and employers’ liability insurance in place when they become responsible for a work project, and 84pc admit that self-employment and flexible working puts them at risk of not being properly covered.
“Many people don’t realise that if they work at more than one place, or use their vehicle while at work, then ‘business use’ must be included on their car insurance to ensure they are correctly and fully covered,” continues Krushal. “For example, a school teacher who takes a pupil to hospital following a trip, a bank clerk working at different branches to their normal place of work, or a builder driving to a customer’s house to provide an estimate or to visit their accountant – they all need to consider whether they’re covered.
“There’s also a common misunderstanding about the cost of this additional cover, which in many instances can be no extra at all, or if there is a charge, it may be very small, depending on how many ‘business miles’ are driven.”
This general confusion around work-related insurance cover is intensified when carrying out an internet search for insurance policies for the self employed. It quickly becomes clear why expert insurance advice is a necessity for self employed and flexible workers.
“Being self employed brings such variations depending on the type of business; by talking to a local broker you can ask any questions and go through individual requirements to ensure you have the right insurance policy in place,” says Krushal.
Starting a business, going freelance or acting as a consultant comes with huge challenges, whether it’s creating a website or doing the admin. It is an extremely energy-intensive career move.
Getting professional advice from insurance experts means that you can focus on your business with complete peace of mind around your insurance.
*Source: Office of National Statistics
** The A-Plan Insurance Spotlight Report, 2019 aims to start a conversation about increased transparency – investigating consumer attitudes and behaviours towards home, car and personal insurance to establish where knowledge gaps exist and generate ideas to help consumers and communities better protect themselves. Statistics quoted are based on the results of nationally representative independent research of 2,000 UK consumers conducted by Netfluential on A-Plan’s behalf.
The Norwich branch of A-Plan is at 1 Surrey Street, Norwich, NR1 3NX, call 01603 863020, or visit www.aplan.co.uk/norwich