This can cover the cost of legal claims made against you if someone is injured or their property is damaged as a result of your business activities.
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Make sure your business is protected if you're self-employed
Self-employed insurance helps to protect yourself from being out of pocket from legal action, data breaches or personal injury.
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What is self-employed insurance?
Self-employed insurance refers to a collection of business insurance policies tailored for individuals who work for themselves. This includes sole traders, freelancers, consultants, and contractors across various industries.
These policies are designed to protect self-employed professionals from potential risks that could impact their business, finances, or reputation. Common types of cover include public liability insurance, professional indemnity insurance, and income protection, among others.
By having self-employed insurance, you can safeguard your business against unexpected costs, such as legal claims, accidents, or loss of income, ensuring peace of mind while you focus on growing your venture.
Why get self employed insurance?
You're not legally required to have any form of self-employed insurance unless you have staff. But even if you work alone, it’s strongly recommended. Without insurance, you’d be responsible for any costs associated with accidents, injuries, reputational damage, negligence or property damage that occur as a result of your business activities. This could lead to significant financial losses that could potentially put your business and personal finances at risk.
Overall, self-employed insurance can provide financial protection for individuals who have no employer to fall back on if something goes wrong. It's important to carefully evaluate your risks and choose the right covers to protect your business and assets.
Number of individuals who are self-employed in the UK[1]
4.28million
What types of self-employed insurance can I get?
Self-employed public liability insurance
This can cover the cost of legal claims made against you if someone is injured or their property is damaged as a result of your business activities.
Professional indemnity insurance
This protects you if a client makes a claim against you for negligence, errors or omissions in your work, which causes them to lose money.
Employers’ liability insurance
If you employ anyone other than immediate family members, even on a temporary basis, employers’ liability insurance is a legal requirement. This can cover the cost of compensation claims made by staff who are injured or become ill as a result of their work.
Income protection insurance
This covers you if you are unable to work due to illness or injury, by providing a regular income to replace your lost earnings.
What types of self-employed insurance can I get?
Self-employed public liability insurance
Professional indemnity insurance
This protects you if a client makes a claim against you for negligence, errors or omissions in your work, which causes them to lose money.
Employers’ liability insurance
If you employ anyone other than immediate family members, even on a temporary basis, employers’ liability insurance is a legal requirement. This can cover the cost of compensation claims made by staff who are injured or become ill as a result of their work.
Income protection insurance
This covers you if you are unable to work due to illness or injury, by providing a regular income to replace your lost earnings.
What does self-employed insurance cover?
Covers
Damages or legal fees that may arise if someone is injured or their property is damaged as a result of your business activities.
Damages or legal fees that may arise if you make a mistake or are negligent in providing your professional services.
Damages or legal fees that may arise if one of your employees is injured or becomes ill as a result of their work for you.
May cover the cost of repairing or replacing any equipment that is lost, stolen, or damaged as a result of your business activities.
Any lost income or expenses that may arise if your business is unable to operate due to unforeseen circumstances such as fire, flood, or other natural disasters.
Doesn't cover
Any injuries or illnesses you may sustain yourself while working.
Any damages or legal fees that may arise from intentional or illegal activities.
Losses that may arise as a result of poor business decisions or market conditions.
Limited coverage for cyber attacks or data breaches.
Keep in mind that the types of cover you select typically determines what’s protected or what isn't. All policies have exclusions and may also have payout limits for certain claims, so it's important to check with your provider.
How to choose self-employed insurance
Choosing the right self-employed insurance policy can be a daunting task, but here are some tips to help you make an informed decision:
Assess your risks
Identify the risks that are specific to your business and assess how likely they are to occur. This will help you determine which types of insurance you need.
Compare policies
The quality of coverage usually holds more significance than the cost. Opting for the cheapest option could leave your business inadequately protected. Compare different policies and pick the right one for you.
Check the coverage limits
Make sure the coverage limits of the policy you’re considering are adequate for your business needs. For example, if you work with expensive equipment, make sure the policy would pay the full replacement value in case of loss or damage.
Look for additional benefits
Some policies offer additional benefits, such as access to legal advice or a claims helpline. Consider these additional benefits when comparing policies.
Seek professional advice
If you're unsure about which policy to choose or what coverage you need, seek professional advice from an insurance broker or independent advisor.
How much does self-employed insurance cost?
The cost of self-employed insurance depends on the type and level of policies required, the size of the business, and other factors.
For example, the more employees you have the higher the risk that one of them could be injured in work. Or maybe the type of work you do carries a greater risk to the public - scaffolders and other trades can pose a greater risk than copywriters and similar startups, for example.
The amount of cover you take, and the excess you're prepared to pay, can all influence the overall cost too. It's important you pay for the cover you need - too much cover can mean you're paying more than you need to and too little cover can mean the policy isn't fit for purpose. If you have any questions you should check in with the insurance provider.
Learn more about our business insurance partner
We qualify, quantify and offer insurance using data, analysis and technology, and we serve a wide range of business types — from dog walkers and dieticians, to landlords and locksmiths. Enro Ltd t/a Superscript is authorised and regulated by the Financial Conduct Authority.
Why Superscript?
We make it quick and easy to find, buy and manage your business insurance.
Customisable cover for 1000s of business types
Superscript will help you find the different types of cover that are right for your business.
Adjust your cover as you grow
Amend your cover with no admin fees, to address your evolving needs as your business grows.
Simple claims process
Our customer portal allows you to enter the details we need to get your claim processed.
FAQs
Is self-employed insurance mandatory?
The necessity of self-employed insurance depends on the nature of your business and how you operate. For example, employers’ liability insurance is a legal requirement if you hire staff, whether they’re temporary or permanent. This cover protects against claims from employees who may become ill or injured due to their work.
Other types of insurance, such as public liability insurance, professional indemnity insurance, or income protection, aren’t legally required but can be crucial for protecting your business from unexpected costs. Additionally, some clients or contracts may require specific cover before they agree to work with you. For instance, professional indemnity insurance is often a prerequisite for consultants or freelancers working with high-profile clients.
Taking out self-employed insurance not only protects your livelihood but can also enhance your credibility and professionalism in the eyes of potential clients. It's always important to review your business needs and any industry-specific requirements to determine the most suitable level of coverage.
Can I get self-employed insurance quotes online?
Yes, many insurance companies, brokers and comparison sites like money.co.uk offer online quotes for self-employed insurance. It's a good idea to compare multiple quotes from different providers to find the best coverage and price for your needs.
Can I cancel my self-employed insurance policy if I no longer need it?
You can usually cancel your self-employed insurance policy at any time, although there may be fees or penalties for doing so. It's important to carefully review the terms and conditions of the policy before purchasing to understand the cancellation policy.
Do I need insurance if I’m running a business from home?
If you’re running a business from home, having the right insurance can offer valuable protection. For example, if you use specialist equipment, machinery, or other expensive work-related items, business insurance may be a good idea to safeguard your assets. Before taking out additional cover, check what your home contents insurance already protects, as some items may be included.
It’s also important to consider the nature of your business. If you host client meetings at home, you may need public liability insurance. This cover can protect you if a client is injured or their property is damaged while visiting your home.
In addition, if you’re storing stock or using your home as a base for operations, certain business insurance policies can provide tailored protection. Review your circumstances and talk to an insurer or broker to ensure you’re adequately covered.
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References
1. UK Labour Market Statistics May 2024