Public liability
This covers the costs of third-party compensation claims made against you if you damage someone’s property or cause an injury or death
Self-employed business insurance
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What is self-employed insurance?
Self-employed business insurance protects sole traders, freelancers and contractors from the financial risks of running your own business.
Depending on the type of work you do, it can include cover for things like accidental injury or property damage, legal claims, lost or stolen equipment, and professional mistakes.
There isn't a single policy called "self-employed insurance". Instead, you choose the types of cover that suit your business, such as public liability insurance,professional indemnity insurance or employers' liability insurance if you hire staff.
Do I need business insurance if I'm self-employed?
Business insurance isn't legally required for most self-employed people, but it can protect you from costly claims, legal fees and accidental damage that could otherwise leave you out of pocket.
The only exception is employers' liability insurance, which is a legal requirement if you employ staff, including some temporary, casual or apprentice workers.
Some clients or contracts may also require you to have certain types of cover, such as public liability or professional indemnity insurance.
Approximately
4.5 million people
Are self-employed in the UK, accounting for approximately 13% of the workforce
The most common cover for sole traders is
Public liability
For those who work with customers or in public spaces
UK insurers pay out roughly
£7
.6 million per day
On liability claims, according to The Association of British Insurers (ABI)
What type of insurance do I need if i'm self-employed?
There are a few different types of business insurance that can provide cover sole traders. These include the following:
-
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Professional Indemnity
If a client isn’t happy with your work and takes you to court, this covers you for legal fees plus any damages you have to pay
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Business contents insurance
Protects your equipment, stock and business belongings against risks like theft, fire and accidental damage
-
Income protection insurance
Provides a replacement income if you’re unable to work due to illness or injury
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Business building insurance
If you have a business premises, or even if you work from home, this keeps you protected against damage to your building
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Employers’ liability insurance
This protects employers from financial loss in the event of employee injury or illness arising from work-related activities.
How much does self-employed business insurance cost?
The cost of self-employed insurance will vary based on your occupation, location, size and turnover, and previous claims.
Cheapest Annual Price | Average Annual Price | |
|---|---|---|
Public liability | £60.54 | £78.75 |
Professional indemnity | £80.42 | £93.05 |
Employers liability | £114.86 | £200.16 |
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.
Public liability tends to be the cheapest, with the average policy price of £80.76, while the lowest 10% of customers paid £64.94.
What’s the cheapest price I could pay for business insurance?
£5
.05^ 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.
Which professions can get self-employed business insurance?
Virtually all sole traders and self-employed professions can get business insurance, including:
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Hairdressers
-
Tradesmen
-
Café owners
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Online retailers
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Dog walkers
-
Caterers
-
Domestic cleaners
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Freelancers
Our expert says…
Self-employed individuals face a different set of challenges to those in full-time employment. From having no paid sick pay that leaves you vulnerable when ill or injured to potential public or professional liability if you interact with people or give advice as part of your job. Despite over 4.5 million people in the UK being self-employed in 2026, many do not have sufficient insurance.
When you compare self-employed business insurance with MoneySuperMarket, we’ll help you find a policy that offers all the coverage you need for the best price possible - giving you confidence and your business room to grow.
Jake Edmonds Travel & Commercial Insurance Expert
Compare self-employed business insurance
We’ve partnered with Simply Business to help you find the cheapest quotes on business insurance for self-employed people. It’s quick, easy, and free – here’s what you’ll need on hand:
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Your trade or industry
Tell us what line of work you’re in, and whether you’re a sole trader or if you own a small business
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How long you’ve been self-employed
We’ll need to know how long you’ve been working for yourself to bring you the right deals
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Your expected turnover
Tell us how much you expect to make in the next year – this is one of the main factors insurers use to give you a quote
Do I need public liability insurance if I’m self-employed?
Public liability insurance isn’t a legal requirement – but some companies that work with self-employed people might demand that you have public liability insurance in place before they’ll do business with you.
Even if that’s not the case, self-employed people should still consider getting public liability cover, depending on the kind of work they do. Public liability covers you if you harm a member of the public – by either damaging their property, or causing an injury or death.
If you’re self-employed, there’s still a risk this might happen. For instance, if you work in construction, falling tools or scaffolding could injure someone on the street.
Even if you work from home, it’s worth thinking about – visiting clients or customers might injure themselves in your home, and you could still be held liable.
Do I need employers' liability insurance if I'm self employed?
Employers’ liability insurance financially protects business owners should their staff make a compensation claim for an incident that causes injury or damage to their property.
This means that if you’re self-employed and you employ others, then you are likely to be required to get employers’ liability insurance by law. This can hold true not just for regular staff but also subcontractors and even volunteers.
If you don’t need employers’ liability insurance, then you might still want to consider public liability, professional indemnity and business building insurance as a self employed individual.
Do I need business insurance if I work from home?
Working from home doesn’t automatically mean you need business insurance, as your standard home insurance typically covers basic equipment like a laptop or printer.
However, you will most likely need additional cover for business equipment, stock or employees and customers visiting your home.
Is self-employed insurance tax deductible?
Business insurance premiums are usually an allowable business expense for self-employed people, meaning you may be able to claim them as a business cost when calculating your taxable profit. It’s always worth checking with HMRC or an accountant for your specific circumstances.
What is cyber insurance and do I need it?
Cyber insurance helps protect businesses against the costs of cyber attacks, data breaches and online security issues. It's worth considering if you store customer information, use online systems or rely on digital equipment to run your business.
Can I get business insurance if I only work part-time?
Yes. Many insurers offer cover for part-time businesses, freelancers and people running a business alongside another job. The level of cover you need will depend on your type of work and potential risks.
What's the difference between a sole trader and self-employed?
The terms sole trader and self-employed are often used interchangeably, but they aren’t exactly the same.
Being self-employed means you work for yourself rather than an employer, while a sole trader is a specific business structure where you are the only owner of your business and are personally responsible for its finances.
Many self-employed people, such as freelancers, contractors and small business owners, operate as sole traders. Other self-employed people may choose a different structure, such as setting up a limited company.
For insurance purposes, both sole traders and other self-employed workers may need cover such as public liability, professional indemnity or business contents insurance, depending on the type of work they do.
Do I need business insurance for a side hustle?
It depends on the type of side hustle you run. While many small side businesses don’t legally need insurance, cover can help protect you against unexpected costs, claims or damage.
Examples of side hustles that may benefit from business insurance include:
Etsy and handmade sellers – cover can help protect against customer claims if a product causes injury or damage
Amazon, eBay and online sellers – insurance can help protect stock, equipment and against product liability claims
Vinted, Depop and eBay resellers – if you regularly sell items for profit, you may need cover beyond standard insurance
Freelancers and content creators – professional indemnity cover can help if a client claims your work caused financial loss
Home-based businesses – business insurance can protect equipment or stock that may not be covered by your home insurance
If your side hustle is growing, you’re making regular sales or working with customers, it’s worth checking what cover you might need.
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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.
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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.
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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 12 Aug 2026 by
According to Simply Business data, 10% of customers paid £60.54 or less annually for a public liability insurance policy. Figure based on annual quotes purchased between 1st May - 31st Jul 2026. 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 £78.75 or less annually for a public liability insurance policy. Figure based on annual quotes purchased between 1st May - 31st Jul 2026. 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 £80.42 or less annually for a professional indemnity insurance policy. Figure based on annual quotes purchased between 1st May - 31st Jul 2026. 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 £93.05 or less annually for a professional indemnity insurance policy. Figure based on annual quotes purchased between 1st May - 31st Jul 2026. 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 £114.86 or less annually for a employers' liability insurance policy. Figure based on annual quotes purchased between 1st May - 31st Jul 2026. 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 £200.16 or less annually for a employers' liability insurance policy. Figure based on annual quotes purchased between 1st May - 31st Jul 2026. 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
Average claims value for MoneySuperMarket customers who claimed on their business insurance in the last 12 months. Data provided by SimplyBusiness.
According to Simply Business data, 10% of customers paid £5.05 or less monthly for a public liability insurance policy. Figure based on annual quotes purchased between 1st May - 31st Jul 2026 The price is for up to £2 million of public liability insurance and excludes the extra costs for paying monthly
