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What is freelance insurance?
Freelance insurance is a tailored business insurance package designed to protect self-employed freelancers from the risks of working independently. It can combine different types of cover depending on the services you provide and whether you work with clients in person.
Key covers often include:
Professional indemnity insurance – protects you if a client claims they suffered a financial loss due to mistakes, negligence, or poor advice in your work.
Public liability insurance – covers claims if you cause injury to a client or member of the public, or damage their property while working.
Business contents and equipment insurance – insures laptops, phones, and other tools of your trade against theft, loss, or damage.
Freelancers can tailor a policy to match their profession, giving peace of mind that both their work and equipment are financially protected.
Do I need freelance insurance?
Yes, many freelancers need insurance to comply with legal requirements, meet client expectations, and protect their livelihood. Employers’ liability insurance is a legal requirement if you hire staff, while clients often insist on public liability insurance if you work on their premises or meet them in person.
Even if not compulsory, insurance provides valuable protection. Professional indemnity insurance is particularly important for freelancers, as it covers claims if a client suffers financial loss due to mistakes or poor advice. Without the right cover, you could face significant costs for stolen equipment, client property damage, or legal disputes.
Why do freelancers need business insurance?
Clients are more likely to hire you
Many people are wary about freelancers who do not have comprehensive insurance policies in place, and many organisations have policies prohibiting them from hiring uninsured companies and individuals.
Government contracts, for example, will usually insist you have a public liability insurance policy of at least £5-£10 million.
Protect members of the public
Things can unexpectedly go very wrong when you are working in any profession. If anyone becomes ill or injured because of your work you could be responsible for the associated costs, including expensive compensation claims.
Public liability insurance covers harm to members of the public. It is not a legal requirement, but some clients will insist you have it.
Avoid a £2,500 daily fine
If you are a UK business and you have any non-family members working for you then by law you must have employers' liability insurance.
Without it, you can be fined up to £2,500 for every day you're not insured
Protection for staff injuries and illnesses
Employers liability insurance is a legal requirement if you hire anyone in the UK and covers the compensation costs if a worker is injured or becomes ill while working for you. This includes ex-employees.
For example:
If a worker is injured while operating faulty or poorly maintained gardening equipment, such as a lawnmower
They injure themselves while pushing heavy equipment like a wheelbarrow, due to a lack of training
They become ill as a result of working in extreme weather conditions
They could sue their current or old employer for failing to put adequate health and safety measures in place.
Your equipment damages someone's property
From spilling drinks or food on a client's carpet to accidentally breaking their furniture, there are many ways you could end up causing expensive property damage that owners may expect you to pay for.
With public liability insurance your insurance provider will pay the costs of accidental damage to other people's property, whether that's a client, supplier, or member of the public.
Legal support if you're sued
You can be taken to court if a client or a member of the public believe they have been physically or financially harmed because of your actions as a freelancer, including if their property is damaged.
Depending on the nature of your business, you could be found liable for anything from giving incorrect advice to accidentally leaving equipment where someone could trip and injure themselves.
Public liability insurance can cover the legal fees and compensation payouts in the event of a claim.
Did you know?
£68 million in insurance claims ^
That's how much was paid out in 2024. Without business insurance, those customers would have faced paying that bill themselves.
Why should I use MoneySuperMarket?
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What insurance should a freelancer have?
The types of insurance a freelancer should have depend on the nature of their work and whether they deal with clients in person. Common covers include:
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Professional indemnity insurance
Professional indemnity insurance is essential for most freelancers, protecting against claims of negligence, mistakes, or poor advice that cause financial loss to a client.
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Public liability insurance
Public liability insurance is important if you meet clients face-to-face or work in their homes or offices, covering injuries or property damage.
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Business interruption
Business interruption insurance protects against disruption from events like fires.
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Personal accident insurance
Personal accident insurance protects you if you're injured.
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Business contents insurance
Business contents insurance insures essential tools such as laptops, phones, and specialist equipment against theft, loss, or damage.
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Employers' liability
Employers’ liability insurance protects you if your staff become ill or injured at work.
How much does freelance insurance cost?
Cheapest Annual Price | Average Annual Price | |
|---|---|---|
Public liability | £64.94^ | £80.76^ |
Professional indemnity | £66.99^ | £94.93^ |
Employers liability | £107.56^ | £228.72^ |
The table shows the average prices paid by our customers for the most common types of business insurance.
Average price means 51% of customers paid this amount or less. Cheapest price means 10% of customers paid this price or less.
What’s the cheapest price I could pay for business insurance?
£5
.41^ per month
According to our latest data, 10% of customers paid this when taking out an annual public liability insurance policy.
How much is the average business insurance claim?
£3,377^
The cost of fixing insurable problems yourself is usually significantly more expensive than taking out insurance.
How likely is it that my insurance claim will be accepted?
Almost 9 in 10
All insurance has conditions and exceptions, so you should read your policy documents carefully to make sure you know what is and isn't covered.
When it comes to business insurance, the cheapest option may not be the best option for you. Sometimes it is worth paying a little more to get a better level of cover.
What types of cover are included in freelance insurance?
Freelance insurance can be tailored to your profession, combining different types of cover into one policy. Depending on your needs, it may include:
Professional indemnity insurance – protects you if a client claims they suffered a financial loss due to errors, negligence, or poor advice in your work.
Public liability insurance – covers compensation claims if you injure someone or damage their property while working.
Business contents and equipment cover – insures laptops, cameras, and specialist tools against theft, loss, or damage.
Legal expenses insurance – helps with the cost of disputes such as tax investigations or client contract issues.
Personal accident cover – provides financial support if you are seriously injured and unable to work.
Employers’ liability insurance – only required if you hire staff.
Like all business insurance, there are exclusions. Freelance insurance won’t normally cover deliberate damage, poor workmanship, wear and tear, breach of contract, or incidents involving drugs or alcohol. Vehicle cover also requires you to declare business use to your insurer.
Our expert says…
There were 1.7million workers suffering from ill health in 2022/23 and if you’re self-employed, there’s no sick pay and no one to stand in for you. That means you either have to use your savings, if you have them, or you need to find another means of funding your missed income.
Business insurance can be a real lifeline here and you can use it if you’re unable to work but it has many other uses too. They range from covering you if your equipment is stolen to covering the legal cost of paying out for compensation if someone is injured while in your business premises.
Rebecca Goodman Personal Finance & Insurance Expert
What other trades could I get insurance for?
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Contractors
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Tradesmen
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Caterers
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Hairdressers
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Painters / decorators
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Electricians
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Plasterers
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Dog walkers
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Frequently asked questions
Do I need indemnity insurance as a sole trader?
You may need professional indemnity insurance if you want to join a professional body or if a customer will only hire you if you have it. This can happen with some contracts and professions, including architecture and law.
Even if it’s not required, professional indemnity insurance can be useful as it can protect you if someone makes a claim against you for work you’ve carried out.
How much public liability insurance do I need?
The amount of public liability insurance you need will depend on the size of your business, and the type of work you carry out. Most policies will offer up to £5 million in cover but you might not need this much.
What insurance do I need to start a business?
The only insurance you legally need to start a business is employers’ liability insurance if you are hiring other workers. However, there are lots of other policies that can be useful financially when you start a business.
These include policies to protect your business building, equipment and stock and cover for legal claims made against you.
What insurance do I need when self-employed?
You don’t need insurance if you’re self employed unless you hire other people, and then you will need an employer’s liability policy.
However, insurance is highly recommended and can protect you from a wide range of scenarios from losing your income because you’re unable to work to having your equipment damaged or stolen.
How to protect yourself as a sole trader?
If you’re a sole trader, there is no back up if you’re ill or injured and can’t work. There’s also no IT department to fix your computer or company to replace missing or broken tools. That’s why having insurance in place can save you a lot of money in the long run if you do need to make a claim.
How much can a sole trader earn before paying tax in the UK?
Most UK workers, including sole traders, are given a tax-free allowance of £12,570 before they start earning tax. Anything they earn over this amount will be taxed at the standard rates.
How to claim sick pay if self-employed?
Self-employed workers do not qualify for sick pay, from an employer or from the government. This means if you’re self-employed and you’re too ill to work, you will have to use savings to fill the income shortfall.
If you have insurance though and it covers your income, you can use it to cover any time you’re unable to work.
How does MoneySuperMarket make money?
We get paid by the companies we work with, but the payment we get doesn’t have any bearing on the information we provide. We get paid in different ways, depending on the type of product or service you buy through us. Our goal is to search deals from as wide a range of companies as possible, but we only show results from our partner providers.
Our comparison service is, and will always be, free to use.
Why should I use a price comparison website?
One of the best ways to get the lowest prices and best deals is to compare quotes from different companies. We do the work for you, comparing quotes side-by-side and giving you all the information you need so you can choose the right deal for your needs and your wallet.
We don’t give recommendations or financial advice, but we give you clear information so you can choose financial products that suit your circumstances.
Does MoneySuperMarket work with all the providers on the market?
No, not every company can be included in our service. This is because some companies don’t want their products included on comparison sites, and some decide that they would rather not pay a fee. There are also a few smaller providers who can struggle to cope with the volume of customers that can find their products if they appear on MoneySuperMarket.
Our goal is to search deals from as wide a range of companies as possible so that you can choose the deal that suits you.
Is business insurance eligible for SuperSaveClub and rewards?
No, at this time business insurance is not an eligible product for unlocking our SuperSaveClub rewards. It is also not included in our Price Promise.
Who are Simply Business?
Simply Business is one of the largest insurance brokers in the UK. They work with leading and specialist insurers to provide cover for small business owners, landlords and self-employed workers.
MoneySuperMarket has a commercial partnership with Simply Business. They offer various business and landlord insurance policies from different insurers through our platform, allowing our customers to find affordable quotes and policies that suit your specific needs.
Reviewed on 10 Dec 2025 by
According to Simply Business data, 10% of customers paid £5.41 or less monthly for a public liability insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £2 million of public liability insurance and excludes the extra costs for paying monthly
Source: Gov.uk
YouGov Survey 1st July 2024 to 30th June 2025. Net Recommend score derived from “Which of the following online service websites would you recommend to a friend or colleague, or tell them to avoid?” Base: Current Customers of (MoneySuperMarket n=18,382, Compare the Market n=16,802, Go.Compare n=10,162, Confused.com n=8,229, Uswitch n=528).
From 01.06.23 to 31.05.24 MoneySuperMarket customers received £1.59bn estimated savings based on (i) SuperSaveClub reward redemptions, and (ii) savings claims per product multiplied by the number of sales. Products included - Car, Home, Pet and Travel insurance, Broadband, Credit Cards, Loans and Mortgages.
According to Simply Business data, 10% of customers paid £64.94 or less annually for a public liability insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £2 million of public liability insurance and excludes the extra costs for paying monthly
According to Simply Business data, 51% of customers paid £80.76 or less annually for a public liability insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £2 million of public liability insurance and excludes the extra costs for paying monthly
According to Simply Business data, 10% of customers paid £66.99 or less annually for a professional indemnity insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £1 million of public liability insurance and excludes the extra costs for paying monthly
According to Simply Business data, 51% of customers paid £94.93 or less annually for a professional indemnity insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £1 million of public liability insurance and excludes the extra costs for paying monthly
According to Simply Business data, 10% of customers paid £107.56 or less annually for a employers' liability insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £10 million of employers' liability insurance and up to £2 million public liability limit and excludes the extra costs for paying monthly
According to Simply Business data, 51% of customers paid £228.72 or less annually for a employers' liability insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £10 million of employers' liability insurance and up to £2 million public liability limit and excludes the extra costs for paying monthly
88% of business insurance claims made by MoneySuperMarket customers were accepted in the 12 months before March 2025. Data from SimplyBusiness.
Simply Business data 2024
Average claims value for MoneySuperMarket customers who claimed on their business insurance in the last 12 months. Data provided by SimplyBusiness.