Whether through entrepreneurial endeavour or pragmatic necessity, the economic downturn saw an awful lot of people set out in business on their own.

This trend has continued and in the second quarter of this year an extra 257,000 people became self-employed, bringing the total to 4.79 million people – some 15.1% of all people in work.

The attraction and flexibility of being your own boss is obvious, but there are also perils too.

If you are the only or even the main bread-winner in the household, your new venture is responsible for keeping a roof over the family’s head and food on the table.

So what happens if you are sick or have an accident and are unable to work for a while?

What many self-employed people fail to take into account is that once they go it alone, there is no employer around to pay them sick pay. It’s true, there is some state support, but that is around £109 a week. Could you pay your mortgage and all your other bills with that?

Take a moment to tot up what you spend each month on your mortgage, your council tax, your gas, electric and water bills, food, clothes and so on. It all adds up doesn’t it!

According to the Association of British Insurers, a million people a year are forced to stop work for more than four weeks due to illness or injury.

Income protection insurance kicks in after an agreed period – often three or six months – and helps until you get back to work. Some policies even start straight away, though the longer you can defer, the lower the premium.

All policies are different and need looking at on an individual basis to ensure you get the right policy for your exact needs.

If you’re self-employed – or even if you’re not – give me a call and we’ll talk through the best options to protect you and your family.