Blog Information

• Posted By : insurance advisernet
• Posted On : Mar 15, 2022
• Views : 148
• Category : General
• Description : The Individual is responsible for all aspects of the business, including debts and liabilities. If you work for yourself, then you're a sole trader. If you don't have any employees – either people who work for you on an ongoing basis or casuals – then you're a sole trader.

Overview

• Your business is interwoven into your daily life when you're a sole trader. What insurance do I need for my business? It's an important question which we are often asked. Whether you're a sole trader, run a small business or have a large corporation, there will always be some risk involved when running a business.

   

  

   

  What Is A Sole Trader?

  A sole trader is an individual who owns and runs their business as an individual, with no distinction between the person and the business.

  The Individual is responsible for all aspects of the business, including debts and liabilities. If you work for yourself, then you're a sole trader. If you don't have any employees – either people who work for you on an ongoing basis or casuals – then you're a sole trader.

   

  Why Is Insurance Important for A Sole Trader?

  Insurance is an essential part of protecting your business from unexpected events that could cause financial loss.

  Sole traders and partnerships may not be legally required to have insurance, but it's essential for protecting your livelihood and giving your customers peace of mind.

  If you employ staff, you will also likely be required to hold certain types of insurance. You are personally responsible for any losses or debts your business incurs as a sole trader. If a third party sues you or if one of your employees is injured during their duties, you could be forced to pay out thousands.

  The simplest way to protect yourself from this financial risk is to take out insurance.

  There are many different types of insurance available, and not every policy will be suitable for each sole trader's needs.

   

  What Insurance Do I Need as A Sole Trader?

  There are four main types of insurance policies sole traders need to consider when running their business: business liability insurance, employee insurance, cyber insurance, and commercial vehicle insurance. There are several variations within these four categories; business liability includes commercial property protection and public liability insurance. It is essential to have enough coverage to ensure that you can continue operating the business if a claim is made against it by a third party or employee.

   

  If you are a sole trader, it is vital to have the right insurance cover. The right policies will help protect you, your home and your business against some of the worst possible problems that could occur. Consider working with an insurance adviser like Insurance Advisernet. Contact Insurance Advisernet New Zealand today to learn more about the various services for a sole trader.