With advances in the transfer of information and the development of a boundless world we see more and more individuals turning to the internet to make their fortunes. Whether online or offline taking the plunge into self employment is always a big step, removing youself from the cosy world of employment – pension, sick pay and paid holidays all evaporate into thin air. Regardless of the business being online, offline or on any line for that matter it is important to consider your financial protection.
A large proportion of the UK economy is made up of small businesses and soletraders and these numbers are rising, with the majority of self employed individuals they have no-one to fall back, if you are not working then you are not earning. With hours worked, workloads and stress levels of the self employed tending to be higher than those employed it is vital to ensure you minimise the time period which you take off due to illness but also protect your income should you be rendered unable to work for a considerable time period.
The insurance market has really developed the range of self employed products with the increasing demand, providing really useful additional benefits aimed at easing the pressure should you require time off work due to illness or injury.
Take self employed health insurance, the main benefits of having a health insurance policy when you are self employed is speed, how quickly you can be treated and be back on your feet working again. In addition to receiving prompt treatment when and where you need it some insurers even provide secretarial services to notify clients and suppliers that you are off work receiving treatment.
Where self employed health insurance helps you receive treatment quickly for an acute condition to minimise loss of income, it does not cover any loss of income for the period of time you are unable to work. The truth is that every day you are unavailable for work eis another day you are not bringing in an income and if customer service happens to dip, this could unfortunately see you looking unreliable and customers could well turn elsewhere.
Should you suffer a serious illness or injury, there are policies available designed to cover your monthly financial obligations so yo do not have to worry. Take a self employed income protection policy, if you were unable to work for a prolonged period this could protect up to 65% of your income by providing a monthly tax free cash sum following your deferred period.
There are also other insurance policies which can assist with the running and protection of your business operation and ultimately reduce your potential liabilities going forward. In the early days when cash flow can be an issue and money is tight, cutting back on financial protection could seem a viable option however please weigh up the consequences if considering this, in many cases it can be a false economy and you could pay the price and more in the future. By reducing your financial protection you are simply increasing your risk exposure.
If you are self employed and looking for insurance then let us know, whether it’s health insurance advice, a term assurance quote or just a quick chat to make sure you are heading in the right direction, we are here to help.
For more useful information when setting up on your own visit start-ups.co.uk.
