In a one-person business every forint is visible – including what goes on insurance. That's exactly why the aim here isn't to "cover everything", but to cover the three most painful risks: what you could do to someone else, what you work with, and yourself. That is the logic of the minimal portfolio.
- First layer: liability – because damage caused to others comes out of your personal assets.
- Second layer: your working equipment – if the equipment goes down, so does your income.
- Third layer: yourself – in a one-person company, the owner is the only "key person".
First layer: liability
As a sole trader, your entire personal assets are liable for your obligations – there's no limited company (Ltd.) to absorb the claim. That's why liability insurance here isn't a corporate luxury but part of your family's financial security: if your work causes damage to someone else, the liability policy provides cover according to its terms – within the insured scope of activity, up to the chosen limit, above the deductible. For some activities, a law or a chamber even requires it. For an overview of the types, see the liability article.
Second layer: what you work with
The laptop, the toolkit, the small van, the workshop – a sole trader's equipment is small but critical: there's no spare machine in the department next door. That's why cover for equipment matters not because of the value involved, but because of how urgently it needs replacing. Those working from home should pay special attention to the line between personal and business assets: the home office article. For vehicles, alongside MTPL, whether to add casco (comprehensive) cover depends on the vehicle's value and its role in the work.
Third layer: yourself
In a one-person company, the biggest risk isn't in the equipment but in the person: if the owner goes down – accident, illness – income drops to zero while the costs stay. This is what the personal insurance layer answers: cover for accident- and illness-related loss of income, and lump-sum benefits for more serious cases. This already leads into personal financial planning – the key point here is simply that this is the layer most often missing from the minimal portfolio, even though it replaces the loss that is hardest to absorb out of pocket.
And what can be left out?
An honest close: a minimal portfolio doesn't need everything. For rarely justified elements – such as the much-misunderstood business interruption cover – a reserve, not a policy, is typically the right answer here. The right order is: first get the three layers in place, then fine-tune. For the wider questions facing starting businesses, see the first business insurance.
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