Who do sole traders need insurance?
What insurance is available for sole traders?
A sole trader may also choose to tailor their policy with other relevant products to meet their requirements, including cyber and data insurance, portable equipment cover and legal protection.
Tell us more about what you do as a sole trader and we'll help build an insurance policy that's right for you.
Get a quoteHow does a sole trader differ from self-employed or freelance?
The primary difference between sole traders and self-employed professionals is that ‘sole trader’ describes the structure of your business. Meanwhile, ‘self-employed’ simply means you are not employed by someone else. Self-employed people also often pay tax through PAYE.
There can be crossover between the two – sole traders are self-employed, as they run their business by themselves. However, not all self-employed people and freelancers are sole traders – if you’re a sole trader, you’ll typically register with the government (external link), either under your own name or a business name.
If you are instead working on a freelance basis, gearing your business insurance towards the common risks that come with self-employment – as well as risks associated with your industry – may bring extra reassurance.
How much does public liability insurance cost for a sole trader?
The cost of public liability (PL) insurancefor asole trader will depend on the type of work your business carries out, where you carry it out and how much coverage you think you’ll need.
Hiscox public liability cover starts as low as £5.30 per month*. Our experts work with you to understand your sole trader business and seek the best insurance cover to suit your requirements.
Depending on the type of contracts you have or intend to have, we also offer PL cover up to £10 million for legal costs, compensation pay-outs and expenses.
*Figures based on an average of all public liability policies sold to at least 10% of our customer base between August 2024 and September 2025.
What insurance do I need for running my business from home?
As a sole trader or self-employed professional, you may run your business from home – even so, your insurance requirements will usually line up with those operating from commercial premises.
Your professional risks may be similar when you work from home, so you may still consider a policy including public liability insurance, professional indemnity cover, personal accident insurance, cyber and data cover and legal protection.
It may be wise to check your home insurance policy as this may not account for your business assets – so contents cover, with portable equipment cover as an add-on, could also be helpful.
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