Self-employed business insurance can provide vital financial protection for sole traders, freelancers, and consultants across the UK. Whether working from home, visiting clients, or running a mobile service, risks such as accidents, theft, or claims against your work could carry serious consequences.
We help arrange policies that support self-employed professionals in safeguarding their businesses. Below, we outline the key types of cover that should be considered, forming an essential self-employed insurance checklist.
Why Self-Employed Insurance Matters
While some policies may not be legally required, many clients expect businesses to have insurance in place before offering contracts. More importantly, having cover could protect your personal finances in case of an unexpected event.
1. Public Liability Insurance
Public liability insurance protects against third-party injury or property damage caused by your business activities.
Typical examples:
- A client trips over your equipment during a visit.
- You accidentally damage property while working in someone’s home.
Even if risk seems low, public liability claims can lead to expensive legal costs. Many clients may ask for proof of cover before agreeing to work with you.
2. Professional Indemnity Insurance
For consultants, designers, and service-based professionals, professional indemnity insurance is key. It covers claims arising from:
- Mistakes in your work
- Incorrect advice
- Breach of confidentiality
Without it, defending even unfounded claims could lead to significant legal bills.
3. Tools and Equipment Cover
Self-employed tradespeople and mobile businesses often rely on specialist tools. Tools and equipment insurance could cover the cost of repair or replacement if your tools are lost, stolen, or damaged.
Points to consider:
- Does cover apply to tools left in vehicles overnight?
- Are mobile phones, laptops, or tablets included?
We help find policies that match specific requirements.
4. Business Contents Insurance
If you work from a business premises or dedicated home office, business contents insurance may be useful. It could cover:
- Office furniture
- Stock or products
- Electronic devices
Standard home contents policies often exclude items used for work, so it is important to check where business contents cover might be needed.
5. Income Protection Insurance
While not strictly a business insurance product, income protection insurance could be essential for sole traders. It helps cover a portion of income if you are unable to work due to illness or injury.
Without sick pay or employee benefits, this can offer peace of mind that regular expenses are still covered.
6. Employers’ Liability Insurance (If Applicable)
If you hire any staff, even on a casual basis, employers’ liability insurance is a legal requirement in the UK. It protects against claims made by employees for work-related illness or injury.
Self-employed individuals with no staff do not usually require this cover, but anyone taking on help should check.
Key Takeaway
Having the right insurance arrangements in place helps self-employed professionals protect their business, clients, and financial stability. From public liability insurance to tools cover, reviewing your policies regularly ensures the right level of protection as your work evolves.