Every business needs certain types of insurance to stay protected against common risks and avoid the possibility of being sued for not being properly insured. Of course, different business models will have varying risks, which is why there are different kinds of commercial insurance policies available. Currency traders often operate as solo workers, but they’re typically incorporated as limited liability companies (LLCs) or sole proprietorships. As such, they face many of the same insurance obligations as other small businesses. With that said, here’s a quick guide to help you understand what kind of insurance you’d need as a currency trader:
1. General Liability Insurance
If you’re looking for the most inclusive coverage that will take care of the vast majority of problems you’ll encounter as a currency trader, commercial general liability insurance would be your best bet. If you’re wondering how much a general liability insurance policy will cost, you can use a quote comparison platform to help determine a ballpark figure for your business insurance cost. Generally, you’ll pay no more than $1-$10 per day in insurance depending on the size of your business and the coverage limits you require.
2. Commercial Property Insurance
If you’re operating your currency trading business out of a physical office location outside of your home, you might want to obtain commercial property insurance to cover the cost of lost, stolen, or damaged real estate, supplies, equipment, and other assets. This kind of insurance can help you fend off debilitating debts caused by theft, disasters, and other causes of unexpected property loss.
3. Business Interruption Insurance
Since currency trading requires constant hands-on work, running into a situation in which you’re unable to work could prove to be disastrous for your business. Business interruption insurance will protect you in the event that your business is interrupted due to factors that are beyond your control. This is a useful kind of insurance for many small businesses that deal with any sort of market speculation, as unexpected interruptions can easily occur in these industries.
4. Commercial Umbrella Insurance
Finally, just to cover any lapses or gaps in coverage that might still exist even with the above three policy types in place, you may want to consider getting an umbrella policy. This kind of policy will kick in if the limits of your other policies are reached, so it acts as a safeguard against inadequate coverage. Umbrella insurance can become particularly useful if you encounter a costly lawsuit or other legal proceedings that goes beyond all of your other coverage limits.
Not Having Insurance as a Currency Trader Isn’t Smart
While it might seem like business insurance is an unnecessary investment for a currency trader, going without it could expose you to significant financial risks in the long run. When you consider the fact that most business insurance policies are relatively affordable and will barely even put a scratch in your monthly profits, it really doesn’t make sense to forego this minor yet pivotal expense.