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Self employed insurance for start up businesses

Self employed insurance – everything you need to know

All self employed business owners are liable for many different aspects of the company that they are in charge of, from the financials and employee welfare to bricks and mortar business premises. For these reasons it’s important to have an adequate level of insurance cover in place.

The insurance policies available to self employed business owners differ from typical insurance cover. In this article we discuss the various types of self employed insurance cover available, as well as a few top tips for making sure your business is covered for every eventuality.

Finding self employment insurance cover

There are so many types of business insurance policies out there that are relevant to your business. Here at the Start Up Loans Company we believe it’s much easier to choose a relevant insurance policy when you have help from business experts and mentors who have first-hand experience.

Professional indemnity insurance for self employed business owners

Professional indemnity insurance is one of the single most important insurance policies available to self employed business owners. Professional indemnity insurance protects you against claims of negligence or a breach of professional conduct.

Professional indemnity insurance is a very important insurance policy to have as someone who is self employed. Your business will be protected from any negligence claims brought against you and can aid the cost of legal proceedings.

Public liability insurance for self employed business owners

Self employed public liability insurance cover protects you and your company against claims made from members of the public who suffer an injury as a result of your company. For instance if someone trips over a wire in your salon and breaks their arm you could be liable for their injuries.

How does public liability insurance work? A good policy will cover you against the financial implications of a court case or hearing. Legal proceedings can be expensive. A public liability insurance policy can save your company from a hefty legal bill should an unfortunate accident ever occur.

Private medical insurance for self employed business owners

As someone who is considering becoming self employed, purchasing a good level of private medical cover can ensure time off work due to illness is kept to a minimum. Private healthcare insurance for those who are self employed can offer benefits such as shorter waiting lists, out of business hours appointments and a choice of hospitals or clinics.

When purchasing a self employed health insurance policy it’s important to understand exactly what’s covered. Here at the Start Up Loans Company our business advisors and mentors can guide you through the health insurance landscape to work out the best self employed medical insurance plan for you.

Employers’ liability insurance cover for self employed business owners

Every business owner with employees needs employers’ liability insurance. This cover is compulsory if you employ one or more members of staff. What is employers’ liability insurance? Similar to public liability insurance cover, this type of policy protects you against the cost of claims made from your employees. If a member of your staff falls ill or gets injured in the workplace they’re within their right to make a compensation claim against your business.

These types of claim can be costly. An employer’s’ liability insurance policy seeks to protect you against the financial implications of any legal proceedings brought against you. What happens if you don’t have employers’ liability insurance cover? You could receive a fine of up to £2,500 for each day your business is without cover. Self employed liability cover insurance is a must.

Buildings and contents insurance for self employed business owners

Another major policy that all self employed business owners should have is buildings and content insurance. What is buildings and content insurance? This type of cover is necessary to protect the fixtures, fittings and contents within your business premises. Your company may have expensive equipment stored in your office, such as laptops or computers. This type of cover can protect you against theft or damage, saving you a costly bill in the long run.

Remember, there are various types of business and contents insurance available. It’s important to suit this type of cover to your personal needs. For instance, cover for a hair salon will differ greatly from an IT software company in an office building.

Working from home? Home insurance for business purposes

When you’re self employed you have the freedom to work from home. This is an attractive prospect for many new business owners, but be aware there are insurance policies worth having when using your home as an office space.

Why is working from home insurance important? While you may have an existing level of home insurance cover, this may not cover you for business use. Research is key when looking for the right insurance policy when working from home. Ensure you’ve got the right level of cover to suit your business.

Key person insurance for self employed business owners

Some businesses rely on one or two key members of staff. These could be directors, senior members of your workforce or a business partner.

What is key person cover? If one of your key employees falls ill or dies, your company could be at risk financially. This type of policy protects your business should an unfortunate event occur. A key person cover policy may be beneficial to some SMEs and start ups but not all.

How much is self employed insurance cover?

The cost of self employed insurance policies will differ greatly between businesses and depend on your company’s individual needs. There is no one size fits all policy when it comes to choosing your cover. The most important thing is to ensure that all of your business insurance policies cover your company for your exact needs.

Here are Start Up Loans tips for finding the right self employment insurance policies for you. Make a list of your business needs and requirements for insurance, including the size of your workforce, your services and potential extras you may wish to include in your policy like travel or commercial vehicle insurance.

Shop around for the best possible quotes. There are numerous price comparison sites online that will help you in your search for insurance cover. If you’re an existing Start Up Loans beneficiary, speak to your mentor or delivery partner. They’ll be able to give you free and impartial advice when it comes to finding relevant insurance cover.

Start Up Loans – funding and mentoring for small businesses

Start Up Loans Company offers free advice and mentoring from our business experts and delivery partners. Find out more information about how Start Up Loans works.

If you’re looking to set up your own company, a government-backed Start Up Loan could be for you. We offer personal loans for business purposes of up to £25000 at a 6% fixed rate interest per annum.


Learn with Start Up Loans and help get your business off the ground

Thinking of starting a business? Check out our free online courses in partnership with the Open University on being an entrepreneur.

Our free  Learn with Start Up Loans courses opens in new window include:

Plus free courses on finance and accounting, project management, and leadership.


Reference to any organisation, business and event on this page does not constitute an endorsement or recommendation from the British Business Bank or the UK Government. Whilst we make reasonable efforts to keep the information on this page up to date, we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. The information is intended for general information purposes only and does not take into account your personal situation, nor does it constitute legal, financial, tax or other professional advice. You should always consider whether the information is applicable to your particular circumstances and, where appropriate, seek professional or specialist advice or support.

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