Business insurance for self-employed and sole traders

As a self-employed person or sole trader, finding the right level of insurance should be high on your list of priorities. While you should be confident in the quality of the service you provide, things don’t always go exactly to plan. If your freelance business incurs significant costs defending a claim, self-employed insurance could prove essential.

Our insurance for sole traders and freelancers is designed to protect you from the potential risks associated with being a one-man-band.


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Need more help? Speak to our UK-based experts. Call us on 0800 2800 351

Mon - Fri, 8am - 7pm, Sat, 9am to 2pm, excluding bank holidays. Calls are free from a landline and some mobile contracts

What insurance does a self-employed person or sole trader need?

The insurance requirements of a sole trader, freelancer or contractor will depend on the industry you work in, the type of work you do, and where you work from. When deciding what level of cover you need, it’s wise to think of how you would cope financially should you be unable to work or face a legal battle. The following introdction to the most important self-employed insurance covers should give you an idea of the appropriate package for you.

Professional indemnity insurance, for example, is worth considering if you offer professional advice or consultancy, provide an expert service, or handle client data. Sole trader professional indemnity insurance provides cover for the costs of correcting mistakes, settling a claim, and legal fees for defence if a client accuses you of making a professional mistake. Most self-employed people will also need public liability insurance to protect them in case they are accused of injuring someone, or of damaging someone else’s property. Hiscox have provided more information on freelance public liability insurance below.

Whether you work from home, office or another form of workspace, office insurance is important for protecting you against damage to your business premises, the contents within it, and for any loss of income caused by business interruption as a result of this damage.

Other types of cover you may want to consider are cyber and data risk insurance - which protects from a data breach or hacking of computer systems – and personal accident insurance - which protects you financially if you suffer from an injury that leaves you unable to work.

Public liability insurance for freelancers

If you’re a sole-trader or contractor, self-employed public liability insurance  can protect your business against the cost of settling or defending a claim for bodily injury or property damage from a client or member of the public. For example, if you have members of the public on your premises, it is important to ensure you have protection in place should they trip over a piece of your equipment and injure themselves. This can also apply if you visit them on their premises and, as an example, accidentally damage their property.

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Other self-employed insurance covers

As well as the above mentioned, there are various additional forms of cover that you may want to consider if you are self-employed.

What is your profession?

Find out more about the range of insurance covers we offer to specific industries and professions in the list below:

Self-Employed Guides, Articles & Answers