Sole Trader’s Liability Insurance

In cooperation with LähiTapiola , we offer the most comprehensive insurance in the industry for your protection.

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Insurance

What does the insurance cover?

The insurance covers, within the insured business operations, damage caused to third parties, including:

Personal injuries
Property damage
Financial losses directly related to personal or property damage
Data protection (GDPR)–related damage to natural persons
The insurance also covers the investigation of compensation liability related to the above, determination of its amount, and legal expenses in the event of a dispute.

Good to know

Business liability insurance does not cover, for example, the insured’s own work or product (e.g. correcting or redoing work), pure financial loss without associated personal or property damage, damage caused by software, or breaches of contract.
Property that is the object of work is insured with a coverage limit of €10,000.

This guidance is a generalized summary of the agreement between the policyholder and LähiTapiola and does not create any rights for third parties. In the event of a claim, the valid insurance policy document, insurance terms, and safety instructions apply. You can also find the insurance terms and product descriptions on our website at:
www.lahitapiola.fi/yritysasiakkaille/yritysasiakkaiden-materiaalit

FAQ

Is liability insurance mandatory for a sole trader?

Liability insurance is not legally mandatory for most sole traders. However, it is strongly recommended, as the entrepreneur is personally liable for damages caused to third parties in the course of business.

What does a sole trader’s liability insurance typically cover?

Liability insurance usually covers personal injury, property damage, and related financial losses caused to third parties during business activities, as well as legal costs arising from compensation claims.

Does liability insurance cover the entrepreneur’s own work or mistakes?

No. Liability insurance does not cover correcting or redoing the entrepreneur’s own work or product. It also does not cover pure financial loss without personal or property damage, or contractual disputes.

Is personal property or business equipment included in liability insurance?

No. Liability insurance does not cover the entrepreneur’s own property or equipment. These require separate insurance, such as property or equipment insurance, depending on the business activity.

Does liability insurance cover work performed abroad?

Coverage depends on the policy terms. Many sole trader liability insurance policies are valid within Europe, but activities outside the insured area or in excluded industries may not be covered.