The Entrepreneurial Generation

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.

Self-employment has increased from 3.3 million to 4.8 million over the last sixteen years*, yet many are not covered for the associated risks.

A-Plan’s recent research** shows that 50% 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. This confusing area is one where expert advice can be invaluable to ensure what cover consumers need is safely in place, not based on guesswork.

The lines between employment and self-employment are becoming increasingly blurred, with many people working for businesses but still considered self-employed.

According to A-Plan’s Insurance Spotlight Report, 2019, 42% 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 84% 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 whilst at work, then ‘business use’ must be included on their car insurance to ensure they are correctly and fully covered. 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. 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.

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 one of our business insurance experts means that you can get the right cover for your business at the right price.

*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 our behalf.