Self employed business insurance – UK guide to types, features, policies and prices

Last checked and updated on 26 July 2022

If you work for yourself, then you need to have the right insurance in place, and that’s where self employment insurance comes into play.

This guide will tell you everything you need to know about self employed business insurance in the UK, including the different types of cover available, what features to look for, and how much it costs.

What is self employment insurance?

Self employed business insurance is a type of insurance that covers you if you work for yourself. It can cover things like your equipment, stock, and premises, as well as liability for injury or damage caused to other people.

Is it a legal requirement to have insurance as a self employed person?

No, it’s not a legal requirement to have insurance as a self employed person in the UK. However, it’s a good idea to have some form of cover in place, as it can protect you financially if something goes wrong.

However, if you have employees on payroll then Employer’s Liability Insurance is a requirement.

What types of self employment insurance are there?

There are several different types of self employed business insurance available in the UK. The most common types are public liability insurance, employer’s liability insurance, and professional indemnity insurance.

Public liability insurance for the self employed

Public liability insurance for the self employed covers you if you damage someone else’s property or injure them while working.

Common features of public liability insurance include :

  • Coverage for legal expenses
  • Compensation for damages and injuries
  • Protection against third party claims

Public liability insurance is important for self employed people who work in customer-facing roles, as it can protect you against claims from members of the public.

Employers liability insurance for the self employed

Employer’s liability insurance is a type of insurance that covers you if an employee is injured or becomes ill as a result of working for you. It’s a legal requirement to have this type of insurance if you have employees on payroll.

Common features of employers liability insurance include:

  • Cover for legal costs and expenses
  • Cover for medical expenses
  • Death benefits
  • Income protection

Employers liability insurance is sometimes only available as part of a package policy. However, some insurers do offer standalone policies.

Professional indemnity insurance for the self employed

Professional indemnity insurance covers you if you make a mistake while working that causes financial loss or damage to a client. It’s an important type of cover for professionals such as consultants, advisers, and architects.

Common features of professional indemnity insurance include:

  • Cover for legal expenses: If you are sued by a client, your professional indemnity insurance policy will cover your legal expenses.
  • Product liability cover: This covers you if you sell products that turn out to be faulty and cause injury or damage.

Professional indemnity insurance is not a legal requirement in the UK, but it is something that most clients will expect you to have. If you don’t have professional indemnity insurance and something goes wrong, you could be sued and liable for any damages that result.

What features to look for in an insurance policy

When you’re looking for a self employed business insurance policy, there are a few important features to look for.

Make sure that the policy covers your specific needs, and that it has enough cover to protect you financially if something goes wrong.

It’s also a good idea to look for a policy that offers additional cover such as legal expenses cover or product liability cover. These types of cover can give you extra protection if something goes wrong.

You should also check the excesses and exclusions, to make sure that you’re not left out of pocket if you need to make a claim. This is especially important for things like public liability insurance, where the excess can be quite high.

How much should self employment business insurance cost?

The cost of self employed business insurance varies depending on a number of factors, including the type of cover you need, the level of cover, and the size of your business. You can get an idea of how much it might cost by getting quotes from different insurers.

How to choose the right insurance provider for your needs

When you’re looking for self employed business insurance, it’s important to choose an insurer that offers a good level of cover at a competitive price. It’s also worth considering things like the claims process, customer service, and financial stability of the insurer.

To get the best deal on your self employed business insurance, it’s a good idea to compare quotes from a few different providers.

FAQ

Do I need to have insurance if I’m self employed?

No, it’s not a legal requirement to have insurance as a self employed person in the UK. However, it’s a good idea to have some form of cover in place, as it can protect you financially if something goes wrong.

What types of self employed business insurance are there?

There are several different types of self employed business insurance available in the UK. The most common types are public liability insurance, employer’s liability insurance, and professional indemnity insurance.

How much should self employed business insurance cost?

The cost of self employed business insurance varies depending on a number of factors, including the type of cover you need, the level of cover, and the size of your business. You can get an idea of how much it might cost by getting quotes from different insurers.

What features should I look for in a self employed business insurance policy?

When you’re looking for a self employed business insurance policy, there are a few important features to look for. Make sure that the policy covers your specific needs, and that it has enough cover to protect you financially if something goes wrong. You should also check the excesses and exclusions, to make sure that you’re not left out of pocket if you need to make a claim.

I’m self employed – do I need Employer’s Liability Insurance?

If you have employees on payroll then Employer’s Liability Insurance is a requirement. If you don’t have any employees, then it’s not a legal requirement, but it’s still a good idea to have some form of cover in place.

What does public liability insurance for the self employed cover?

Public liability insurance for the self employed covers you if you damage someone else’s property or injure them while working.

What does employer’s liability insurance cover?

Employer’s liability insurance covers you if one of your employees is injured or becomes ill as a result of their work.

What does professional indemnity insurance for the self employed cover?

Professional indemnity insurance protects you against claims of professional negligence. If you give professional advice or provide a service to clients, then this type of cover can protect you financially if something goes wrong.

Do I need insurance if I work from home?

If you work from home, then your home insurance policy will usually cover you for business-related activities. However, it’s always a good idea to check with your insurer to make sure that you’re covered. You may need to take out an additional policy or upgrade your existing policy if you work from home on a regular basis.

Do I need insurance if I’m a freelance worker?

If you’re a freelance worker, then you may not need business insurance, as most personal liability policies will cover you for work-related activities. However, it’s always a good idea to check with your insurer to make sure that you’re covered. You may need to take out an additional policy or upgrade your existing policy if you work freelance on a regular basis.

Do I need insurance if I’m a contractor?

If you’re a contractor, then you’ll usually need some form of business insurance, as most personal liability policies will not cover you for work-related activities. The type of insurance you need will depend on the nature of your work and the contracts you have in place.

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Important – The information provided in our articles is intended to be for general purpose use only, and not advice for you or your business. We strive to publish accurate information, but encourage you to fact-check and seek expert guidance. We recommend that you always speak to a qualified professional to get advice about how to operate your business under your specific requirements and circumstances.