Business insurance for Sole traders

Running your own business can be hard work – juggling responsibilities means you can’t be everywhere at once. That’s why as a sole trader, insurance is so important, so you’re just as well prepared for the things you don’t see coming. Hiscox will provide tailored coverage based on your needs, to give you the reassurance that you’re covered for the times when things don’t go to plan.

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Insuring your sole trader business

Every day is different for a sole trader. From new business leads, client deadlines, to preparing the accounts. But what if the unexpected happens? Having business insurance for sole traders provides peace of mind that you’re covered, whether it’s for losing client data, a customer claiming you provided the wrong advice, or you’re unable to work after an accident.

Why you need business insurance for sole traders

Unhappy clients

Imagine that information about a customer’s potential IT contract ends up in a competitor’s hands and they win the work. The customer believes it was leaked by their self-employed sales agent and they take legal action against them. Having business insurance with professional indemnity cover means the sales agent is covered for the costs of defending and settling the legal dispute.

Confidential customer data loss

When a cyber attack happens the hackers may infect your IT system with a virus and then demand a ransom to remove it and to return the data. Cyber and data risk cover as part of a sole trader’s business insurance policy will cover the cost of the ransom and several days of lost business, as well as giving you access to our cybercrime experts.

A broken leg prevents work

If you suffer a fall on holiday and it means a lengthy stay in hospital, you might be unable to work or meet clients for some time, with no other income to rely on. Personal accident insurance provides a weekly pay-out, which means the mortgage is taken care of while you’re off work and recovering.

Not sure what you need?

If you’re not sure what you need, tell us a little more about your sole trader business. We’ll help you to build your quote and explore any other insurance needs.

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Sole trader vs. self-employed & freelance

The main difference between sole traders and self-employed, freelance professionals is that ‘sole trader’ describes your business structure; ‘self-employed’ means that you are not employed by somebody else or that you pay tax through PAYE. There can be crossover between the two – sole traders are self-employed, as they run their business by themselves. 

If you are working on a freelance basis, ensure that your business insurance is geared towards protecting you from the common risks that come with self-employment, as well as risks associated with your industry. 

Find out more about the commercial policies we offer as part of Freelancers Insurance

Key types of cover for sole traders

I needed PI insurance quickly for a new company formation and was frustrated at brokers who couldn't provide a simple quote without giving a hard sell over the phone first. Hiscox sorted my policy quickly online without any drama. Very happy indeed.
Pippy Business Limited
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These are just some of the types of business insurance for sole traders that we can offer. We can provide other specific types of cover and build them into a policy that’s tailored to your exact needs.

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Sole trader guides, articles & answers

What type of business insurance does a sole trader need?

With self-employment at an all-time high, it seems we’re becoming a nation of sole traders. While there’s a wide range of insurance available for small business owners, what about if it’s just you? Here are the types of business insurance you could benefit from if you’re self-employed.

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How freelancers and small business can chase late payments

One of the joys of being your own boss is the ability to choose your own working hours, but it’s no fun if these hours are spent chasing late payments. Here are some tips to help you prevent late payments, as well as some guidance about how to deal with clients who pay late.

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A guide to controlling your finances, for the self-employed

Being self-employed means that you always stand to feel the gains and losses of your business acutely. In this article, we discuss the financial pitfalls and opportunities that the self-employed should be aware of, to have control of their business finances.

Read the full article