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: Self Employed
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.
- Public Liability Insurance protects you if someone is injured or their property is damaged because of your work.
- Professional Indemnity Insurance protects you if a client claims they lost money due to mistakes, poor advice, or negligence in your services.
Many self-employed professionals’ benefit from having both, as they cover different but equally important risks.
The terms are often used interchangeably. A sole trader is a specific type of self-employed business structure, but the insurance needs are broadly the same. What matters most is the type of work you do and the risks involved, rather than the label you operate under.
At Protectivity, our self-employed policies are designed to be flexible enough to suit both sole traders and other self-employed professionals.