As a sole trader you carry the business's risks personally — there's no company shield between your work and your own assets. That makes insurance less of an optional extra and more of a basic protection. The good news: most sole traders need only two or three covers, it's usually cheap, and it's tax-deductible.

Public liability: for most, the first one

Public liability covers you if your business causes injury to someone or damage to their property. If you visit customers, have them visit you, or work in public or on client sites — trades, mobile services, anyone physically out in the world — this is usually the cover you need first. Many clients and venues won't let you work without it.

Professional indemnity: if you advise or create

If you provide advice, expertise or creative/professional work — consulting, design, bookkeeping, coaching, tech — professional indemnity covers claims that your work or a mistake cost a client money. Service-based sole traders often find client contracts require it at a set level.

Employers' liability: the legal one

The moment you employ someone — even part-time, even a family member in most cases — employers' liability insurance is a legal requirement, with heavy fines for going without. If you're a sole trader thinking about your first hire, budget this in from day one (alongside the payroll setup).

The situational covers

  • Tools and equipment cover — for tradespeople whose van full of kit is their livelihood; theft from vans is common and specifically covered by the right policy.
  • Product liability — if you make or sell goods.
  • Business contents and portable equipment — laptops, tools, stock.
  • Cyber cover and income protection — increasingly worth it; income protection especially, since as a sole trader there's no sick pay if you can't work.
Claim the premiums Business insurance is an allowable expense, so it reduces your tax bill — the real cost is lower than the quote. Capture premiums in FreeAgent like any other cost, and keep certificates handy because clients ask for them.

Buy it to your risk, not to the cheapest quote

The cheapest policy that fails when you claim is the most expensive one you'll ever buy. Match cover to what your work actually risks and to what your contracts require, and use a broker who understands sole traders. We'll flag the covers your trade calls for, make sure the premiums are claimed properly, and connect you with proper advice through Buzz Financial Services. Get started.