Yes — even if you work alone, business insurance can protect you financially if something goes wrong. For example, if a client or member of the public is injured, or their property is damaged because of your work, you could be held personally responsible for compensation costs. Insurance ensures you won’t have to pay out of your own pocket.
FAQ Category: Freelancer
Some types of insurance are optional, while others may be required depending on how you work. For example:
- Employers’ Liability Insurance is a legal requirement if you hire anyone, even part-time or temporary staff.
- Other covers like Public Liability aren’t required by law but are strongly recommended — and often demanded by clients, landlords, or trade associations.
Freelancer insurance usually starts with public liability cover, which protects you if someone is injured or their property is damaged because of your work. Many freelancers also choose professional indemnity insurance, particularly if they provide advice, designs, or services where mistakes could cause financial loss for a client. If you rely on tools or technology, equipment insurance is another common option to safeguard against theft, loss, or accidental damage. Legal expenses insurance is often added to help with the cost of disputes or tax investigations. And if you employ staff, even casually, employers’ liability insurance is a legal requirement.
The right level of professional indemnity cover depends on the nature of your work and the potential financial impact if something went wrong. For example, a designer creating marketing materials may face lower risk than a consultant advising on large business investments. A good starting point is to consider the size of contracts you handle and the potential losses your client could claim if your work caused an issue. In many cases, clients, agencies, or trade bodies will specify the minimum level of cover they expect — often ranging from £50,000 up to £1 million or more. It’s always better to choose a higher limit if you’re unsure, as claims can quickly add up once legal fees are included.
Yes, in some cases you can be insured for more than one type of freelance activity under a single policy. This is particularly useful if you combine different services — for example, working as both a photographer and a web designer.
With Protectivity you can select multiple activities under a specialist category for example creative industry work, pet care, fitness instructors, therapists,
When arranging your policy, you’ll need to disclose all the types of work you carry out so your insurer can make sure you’re covered. If you take on new kinds of work later, you can usually update your policy to reflect this.