There are a whole range of insurances you may need to consider now you're running your own show!

There is a range of insurances which you may as a self-employed person ask yourself: "Do I really need this?" Your position may change as your business evolves, so always ask yourself these five key questions before deciding:

1. Who are you?

2. What service are you going to offer?

3. How will you provide the service?

4. Where will you operate from?

5. What do you expect to get out of it?

Once you've answered these questions it'll be a lot clearer in your mind - and in the mind of any broker you see - whether you need the protections listed below.

They'll enable you to make certain that your insurer knows exactly what sort of work you're going to do, who with, where and whether you're suitably qualified to undertake the service/trade being provided. This is vital because if, for example, you provide a professional service and your client suffers a loss as a result, they can bring a legal action against you, so your insurer needs to be reasonably confident you're qualified to carry out the work you're planning to do.

Injury cover

If you're trading as a Limited Company, you have a statutory obligation to take out Employer's Liability Insurance, with an indemnity of not less than £5 million to cover potential injury or illness suffered by an employee (including yourself) performing their job in conjunction with your business. This can be either in your offices or on other premises specified for your business. However it doesn't apply to anyone working for you as a self-employed person. Even if you're a sole trader operating with a Limited Company you must have this insurance to comply with the law.

What if someone suffers injury or loss to their property or person due to your negligence in the course of carrying out work for you? Like the person who tears their designer suit on your office furniture or visiting consultant who's injured by a swinging door at your office? Consider Public Liability Indemnity - this covers against any third party suffering injury or damage arising from your business activities. You should look to have at least £2 million cover.

A broker will be able to negotiate a combined insurance package for you. Those working from home could look at an Office at Home Policy. This covers business assets like office furniture, employer's liability and public liability.

Protecting property

"If you're in a position to provide a service or give advice then you need to look at having Professional Indemnity cover."

You need to consider your own business's assets like office property and stock including items taken out of your premises such as laptop computers and goods in transit to customers or clients. These should be insured for "All Risks" including Accidental Damage and include fire, flood and acts of God.

If you're working from home, let your household insurers know. Some will allow home workers to use their home insurance when it comes to office claims, while others will ask that you take out a separate policy, depending on the nature of your work and what equipment is involved.

You can insure for any loss as a result of your premises being damaged or destroyed, the costs involved in getting your business back on track, and the loss of revenue that you may have suffered.

Professional protection

The next one is every consultant's nightmare. If you're in a position to provide a service or give advice, such as an accountant, builder or solicitor, then you need to look at having Professional Indemnity cover. This will protect your business and personal assets, if as a result of your alleged negligence, your customer/client suffers a financial or other loss.

Some vocations like a doctor or accountant are required by law to take out this insurance - ask your insurance broker to advise you if it's necessary. Premiums depend on the type of business you do but they start from around £500 per annum and rise sharply.

Your car

If you're using your car for business then your vehicle insurers need to be told - or you may not be covered! If you're simply making trips to see clients, expect to pay around 10 to 15% more on your premium.

However if your business involves using your car for hire or reward, or for commercial travelling (sales trips etc), then expect your premium to increase by between 25 and 50%. The good news is that premiums for all the different types of business insurance are tax deductible.