What insurance do virtual assistants need?
What insurance do Virtual Assistants need is a guest blog from PolicyBee.
As a business insurance broker, we often get VAs asking us what insurance they need. Truth is, there’s no easy answer. One VA’s workload differs from the next and there’s no one-size-fits-all solution.
That said, VA work can be risky. Whether balancing the books, assisting with marketing strategies, or going out to meet clients, there’s potential for something to go wrong.
Insurance is a must. But different types of insurance do different things, which can be confusing. So let’s take a closer look at them:
Professional indemnity (PI): for slip-ups, mishaps, and mistakes
Being your own boss is great – but it comes at a cost. If you make a mistake and your client loses out, they can sue you. If that happens, the person who’s footing the bill could be you.
PI insurance is your safety net. It rights the wrongs resulting from your mistakes and pays for any court costs, legal fees or compensation you owe. Cover usually includes things like defamation, document loss, intellectual property infringement, and confidentiality breach. Either way, it helps to check the policy wording. That way you know what you’re protected for.
Claims example: A mix-up between two (very similar) email addresses means you send your client’s sales report to their competitor by mistake. Lots of confidential sales data gets seen by the wrong people and the client sues you for breach of confidentiality.
Public liability: for slips, trips, and spills
Public liability insurance covers you for claims of physical damage and injuries caused by you or your business. It’s useful if you go out to run errands and meet clients, or if people come to see you.
It really doesn’t take much to be held liable for a claim: a client tripping over an ill-placed briefcase; a coffee-soaked laptop; or someone slipping on a loose bit of carpet. For many VAs, public liability is a ‘peace of mind’ insurance which means they sleep better at night.
Claims example: You’re visiting a client’s home and accidentally brush up against an expensive piece of artwork. It falls to the floor and breaks. Your client promptly asks you to replace it.
Office and business insurance: for your office and portable equipment
Arguably as important as what you do is what you do it with. Tot up the cost of all the equipment in your office, from PC to printer, pencils to potted plants. At a guess, we’d say it’s a lot.
Office insurance covers property owned by your business for loss, damage, or theft. Portable insurance is for your mobile phone, laptop, and any other equipment you take out and about with you.
Claims example: You’re taking the train back from a meeting and your laptop gets stolen. You’re faced with the prospect of having to pay out of your own pocket so you can get back to work on an important project.
Cyber insurance: for hacks, breaches, and data loss
The internet is great for connecting you to your clients but it’s also a double-edged sword. Juggling lots of tasks for lots of different people can mean your cybersecurity falls by the wayside. Unfortunately, cybercriminalsare great at exploiting weaknesses, leaving you as vulnerable to cyber-attacks as any other business.
As always, it pays to be protected. Cyber insurance covers the cost of repairing, replacing and restoring your systems, data and websites following a hack or a breach. If your business is disrupted, it pays for temporary equipment to get back you back on track. And if you’re sued, it covers any compensation you’re liable for.
You can even add on the option for cyber insurance to cover your lost income, which is a huge bonus when you might be unable to work for a few days.
Claims example: Cybercriminals infect your PC with ransomware, leaving you unable to access your client’s files and data. What’s worse, they demand payment for its release. You let your client know of the situation and they threaten to sue you for unauthorised data collection.
Legal expenses insurance: everything from contract to employment disputes
This insurance covers your legal expenses if you’re involved in a commercial dispute that’s not your fault. Often, these are to do with employment issues and tax investigations. It also covers property-related civil disputes and lost earnings due to jury service.
It can make getting access to expensive legal support a lot easier and save you a lot of money in a time of crisis. Which could be vital as a sole trader.
Legal expenses insurance is usually sold alongside another type of cover, like virtual assistants’ professional indemnity insurance.
Claims example: Your assistant is called up for jury service. During this time, you decide to continue paying them so they don’t fall behind on their bills. You then claim this money back from your legal expenses insurance.
Real protection in the virtual world
When it comes to being a VA, you never know what’s around the corner. You’re asked to wear so many hats for your clients that a mistake can come from anywhere, at any time.
Having the right insurance in place can make a huge difference. Whether it’s a claim that your work wasn’t up to scratch, or a client has a fall at your offices, it’ll protect your bank balance and reputation.
Have some questions about what VA insurance you need? Call the friendly experts on 0345 222 5370 or visit the PolicyBee website to get started.
