What is self-employed business insurance?
Self-employed business insurance refers to a range of covers designed to protect individuals running their own businesses from financial losses due to accidents, legal claims, or damage to tools and equipment. It’s not a one-size-fits-all solution — you choose what you need based on how and where you work.
Do self-employed people need insurance?
You might not legally need insurance to trade as self-employed in the UK, but many clients will ask for proof of cover. Public liability is often expected if you work around other people or visit client sites. Professional indemnity is common if you offer advice, consulting, or creative work. Employers' liability is a legal requirement if you hire anyone, even part-time or on a casual basis.
Beyond that, insurance can give you peace of mind and help you win more work.
What does self-employed business insurance include?
That depends on what you do. You can pick from:
- Public liability insurance—If someone is injured or their property is damaged as a result of your work.
- Professional indemnity insurance—If a client claims you’ve made a mistake, given poor advice or failed to deliver a service properly.
- Business equipment insurance—If your tools, laptop or kit are stolen or damaged.
- Legal expenses—For contract disputes, tax investigations, or help chasing unpaid invoices.
- Employers’ liability—If you hire anyone to help with your work.
Liability insurance for self-employed
Business insurance for the self-employed often starts with liability protection — cover that helps when something goes wrong and you're held responsible. Two of the most common types are public liability and professional indemnity.
Self-employed public liability insurance
Public liability insurance is a smart choice if you deal with people face-to-face, whether at their premises, yours, or on-site. It protects you if someone claims you caused them injury or damaged their property in the course of your work. For many self-employed tradespeople and freelancers, it's the first cover clients ask for.
Example scenarios:
- A self-employed gardener accidentally knocks over and breaks a client's garden sculpture while working.
- A mobile hairdresser spills hair colour, causing a bad skin reaction to a customer during a home treatment.
- A plumber’s toolkit left in a hallway causes someone to trip and injure themselves.
Professional indemnity insurance self-employed
If your work involves giving advice, consulting, or handling intellectual output — from reports and designs to recommendations — professional indemnity insurance covers you if a client claims your service caused them financial loss. It’s especially relevant for self-employed consultants, coaches, designers, and freelancers.
Example scenarios:
- A self-employed web developer delivers a site that goes offline during a client’s major launch, leading to lost revenue.
- A freelance business consultant gives advice that unintentionally contributes to a client making a poor strategic decision.
- A graphic designer uses a stock image without the correct license, and the client is threatened with legal action.
Other business insurance for the self-employed
In addition to liability cover, self-employed individuals may need protection for their business assets, whether working from a home office, workshop, studio, or on the move. These types of insurance help ensure you're not left out of pocket if something goes wrong.
Commercial legal expenses insurance
Commercial legal expenses insurance covers the cost of legal disputes related to your business. Whether it's a contract dispute, employment issue, or debt recovery, this insurance helps cover the fees associated with legal proceedings, including lawyer fees, court costs, and compensation claims.
Business equipment and tools
Your tools, kit, or tech are essential to keeping your work going. This cover protects them against theft, loss, or damage, so you can get back to work without delay.
Stock & materials
Whether you’re a tradesperson or a self-employed retailer, you may keep stock or materials for your business. This cover protects the value of those items from theft or malicious damage.
Owned & hired-in plant
If your self-employed work involves the use of large machinery or specialist equipment, owned & hired plant insurance helps protect it against theft or damage, whether the kit is yours or hired.
Contract works
If you work on longer-term physical projects—like construction or renovations—contract works insurance can protect work-in-progress against unexpected damage, helping cover the cost to restore it.
