Public liability insurance quotes for one person businesses such as tradesman, small offices and shops. Instant online business insurance quotes for sole traders.

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Sole Traders Businesses are run by an Individual

A sole trader is an individual trading in his or her own name or under a suitable trading name. Sole traders are self-employed, for example as shopkeepers, electricians, hairdressers, consultants or advisors. Even though public liability insurance cover is not a legal requirement for sole traders to have, it is still very important for most sole traders to have some form liability cover. Most customers in the building and construction trade usually insist on seeing a copy of the public liability insurance certificate before they consider giving you a contract for the work.

The essential feature of this type of business is that the sole trader has full responsibility for the financial control of his or her own business and for meeting running costs such as marketing the business, stationary, tools and sole trader insurance etc and also capital requirements. The sole trader has the full responsibility for all the debts of the business.

Advantages to being a sole trader

• Freedom – The sole trader is his/her own boss and has complete control over decisions.
• Profit – The sole trader is entitled to all the profit made by the business.
• Simplicity – There is less form-filling than for a limited company. Bookkeeping is less complex. Employers Liability Insurance cover is not required as part of the sole traders insurance policy until they employ staff.
• Savings on fees – There aren’t any legal costs like you’d get with drawing up a partnership agreement or limited company documentation.

Disadvantages to being a sole trader

• Risk – There is no one else to share the responsibilities of running the business with.
• Time – Sole traders often need to work long hours to meet deadlines.
• Expertise – the sole trader may have limited skills in areas such as accounts and tax.
• Vulnerability – There’s no cover if the trader gets ill and cannot work.
• Unlimited liability – the sole trader is responsible for all the debts of the business.