Insurance is the classic thing freelancers skip until a client's contract demands it — then scramble to buy the cheapest policy that ticks the box. Better to understand it once: most self-employed people need only two or three covers, some are legally required, and it's all cheaper than the disaster it prevents (and usually tax-deductible).

The ones most freelancers need

  • Professional indemnity (PI) — covers you if a client claims your advice, work or a mistake cost them money. Essential for anyone providing services, advice or creative work (consultants, designers, developers, coaches, accountants). Many client contracts require it, often at a set cover level.
  • Public liability (PL) — covers injury to people or damage to property caused by your business. Essential if you visit client sites, have clients visit you, or work in physical spaces. A tradesperson or a personal trainer needs this far more than PI.

The one that's the law

Employers' liability insurance is legally required the moment you employ anyone (with very limited exceptions) — and the fines for not having it are steep. If you take on even one part-time employee, this is not optional. (Genuine subcontractors are different, but the line matters — ask if unsure.)

The situational ones

  • Product liability — if you make or sell physical products.
  • Tools and equipment cover — for tradespeople and anyone whose kit is their livelihood; often bolted onto a policy cheaply.
  • Business contents / portable equipment — laptops, cameras and gear, especially if you work on the move.
  • Cyber insurance — increasingly relevant if you hold client data; pairs with good security habits.
  • Income protection — technically personal, not business, but arguably the most important cover a sole earner can have (see our post on the self-employed safety net).
It's usually deductible Business insurance premiums are an allowable expense, so the real cost is lower than the sticker price once you account for the tax relief — another reason not to run bare. Capture the premiums in FreeAgent like any other cost.

How to buy it well

Match the cover to your actual risk, not to the cheapest quote — a PI policy with too little cover fails you exactly when you need it. Read what your client contracts require (they often specify PI cover levels), buy to that, and keep the certificate handy because clients ask for it. A specialist broker for the self-employed is worth more than a price-comparison site here.

We'll flag the covers your situation calls for, make sure premiums are claimed correctly, and connect you with proper advice through Buzz Financial Services. Getting the numbers and the compliance right is what we do — from £19 + VAT a month. Get started.