FAQ Category: Sole Trader

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.

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.

Yes — most insurers can cover home-based businesses, including your equipment and liability when clients visit your home.

If they are genuinely self-employed subcontractors, you may not need it. But if you control how they work, supply tools, or pay them regularly, HMRC may class them as employees, meaning you’re legally required to have cover.