Public liability: the one almost everyone needs
Public liability covers you if your work injures someone or damages their property and they claim against you. It isn't a legal requirement for most sole traders, but in practice many customers and almost all commercial customers expect it, and one claim can be bigger than a year's profit.
Policies come with a limit, the most they'll pay for one claim. Common limits are £1 million, £2 million and £5 million. Some commercial customers ask for £2 million or more, so check before you sign a policy that you can't use for the jobs you want.
Employers' liability: only if you take people on
If you employ anyone, even part-time or on a trial, you are usually legally required to have employers' liability insurance. HSE's guidance explains who counts as an employee. Self-employed workers and subcontractors can be treated differently, so ask your insurer if you use helpers.
Your vehicle
Standard car insurance for 'social, domestic and pleasure' use won't cover driving to work. You need business use as a minimum. If you carry tools, ask about cover for them in the vehicle, and what happens if the van is stolen overnight.
Your equipment
Ladders, poles, pressure washers and mowers are expensive to replace. Equipment cover, sometimes called tools cover, pays if they're stolen or damaged. Check whether it covers kit left in a van overnight, which is when most thefts happen.
Optional extras worth pricing
- Personal accident or income protection: pays something if you can't work, which matters when you're a one-person business
- Legal expenses and tax investigation cover: helps with the cost of a dispute or an HMRC enquiry
- Cover for customers' keys or vehicles: if you hold keys or work on cars
Read the small print before you buy
- Height limits: does the policy exclude work above a certain height, or work from ladders?
- Exclusions: some policies exclude damage by water, or work on roofs
- What counts as your trade: cover for 'window cleaning' may not cover gutters or pressure washing, so say everything you do
- Subcontractors: are people who work for you covered?
- Claims conditions: what you must do after an incident, and how soon you must tell them
Keep your certificate handy
Commercial customers and landlords may ask for proof of cover. Keep a PDF of your certificate on your phone, and set a reminder before it renews so there's never a gap.
Insurance is a business expense
The premiums are allowable business expenses. See expenses you can claim.