Self-Employed Business Insurance

At Park Insurance, we love working with self-employed business owners. Independent and bold, you took the brave step to grow a business on your own terms. Though the road to success isn’t always smooth for the sole trader, the right self employed business insurance cover offers financial protection and allows you to focus on reaching your goals.

From public liability insurance for the self-employed to protection for your staff or premises, the right insurance offers you ultimate peace of mind.

The best insurance cover for the self-employed individual is one that reflects the unique nature of your business. At Park Insurance, we carefully select bespoke coverage to reflect your needs, considering factors such as the size of your business and the type of operation you run. To help you learn about self-employed insurance, read through our handy guide and find out how the right insurance can protect all your hard work.


Self employed business insurance - Shows a sole trader at a desk


Why do you need insurance as a sole trader?

If you’re a sole trader running a small business, you may feel that self-employed business insurance is an unnecessary expense or something that is only needed by large business owners. This is simply not true. Would you be able to cover the legal fees and compensation were a member of the public to make a claim against you? If an accident rendered you unable to work, how would your business survive?

No matter what size a business is, if it represents an important portion of your income, it is wise to protect it with insurance and secure your finances. Risks you may face in self-employment include:

  • Claims made against you by members of the public
  • Personal accident
  • Data breaches
  • Property damage
  • Vehicle breakdowns or theft
  • Equipment theft or damage

Self-employed insurance provides financial protection against such risks, offering your business stability.


What is covered by liability insurance for the self-employed?

Also known as self-employed business insurance, this type of policy protects you and your business from the most commonly encountered risks. The foundation of a self-employed insurance policy comprises:

  • Public liability
  • Professional indemnity
  • Employer’s liability
  • Business premise cover.

Additional types of cover can be added to meet your needs and the level of each can be carefully set to reflect the risk associated with your business operations.


Shows a man carrying a briefcase


Why is self-employed public liability insurance so important?

If, during the course of your business, you deal with the public or their property, self-employed public liability insurance serves to protect you against claims made for personal injury or damage to personal property. Self employed public liability insurance is used to cover the legal costs of a claim and any compensation you are ordered to pay.

Many forms of self-employment would benefit from public liability cover.  If members of the public can visit your premises or if you enter homes or workplaces, a claim could be made against you if something goes wrong. If a client trips and hurts themself in your office or if equipment you have brought into someone’s home scratches an expensive item of furniture, you could face a costly legal claim.

You can choose your level of public liability cover to reflect the realistic levels of risk associated with your self-employed work, so you can work alongside the public safe in the knowledge that you’re financially protected.


Do I need professional indemnity insurance as a self-employed individual?

Professional indemnity insurance offers you protection for the work you carry out in the course of your self-employment. Whether you provide a physical service for members of the public or offer advice, a negligence claim could be made against you.

You may want to take out this type of cover as part of your self-employed business insurance, making sure that you’re financially protected in the event of a claim for loss or damage attributable to your work.


Self employed public liability insurance - Selection of post-it notes on a board


What types of cover can I add to my policy?

When you turn to an insurer such as Park Insurance, you can put together a bespoke self-employed business insurance policy that groups all the different elements of cover your business needs.

In addition to the foundation of public and employer’s liability, professional indemnity and business premise cover, you may like to consider:

  • Personal accident – to help should you find yourself injured and unable to work.
  • Equipment cover – which allows you to repair or replace accidentally damaged equipment.
  • Business interruption – which supports you financially if your business has to close due to unforeseen circumstances.
  • Goods in transit – a useful cover if you transport products to customers, as it protects items in transit from loss, theft or damage.
  • Vehicle or fleet cover – which can conveniently be added to your self-employed business policy to cover any vehicles used in the course of your business.
  • Cyber cover – which may be of interest to those who store confidential data or information on their business IT system.
  • Product liability cover – a cover which can be used to protect you against claims for damage or injury attributable to a product that you make or give your clients access to.


Are there any legal requirements for self-employed insurance?

As of 2022, the only legal requirement relating to insurance cover for self-employed individuals in the UK is the need to hold employer’s liability insurance if you hire any members of staff.

As a self-employed individual, whether you employ just one part-time worker or large numbers of staff on a full-time basis, you are required to hold at least £5 million in employer’s liability cover.

At Park Insurance, we have decades of experience working with the UK’s inspirational entrepreneurs. Dedicated to offering your business the tailored insurance protection it deserves, our friendly, knowledgeable insurance experts devise comprehensive cover for Britain’s sole traders.

Whether you’re working from home or running multiple business premises, Park Insurance can create a self-employed business insurance policy that takes away the worry and lets you focus all your energy on making your business boom. Get in touch today to find out how we can support you.