Do Freelancers Need Business Insurance in the UK? (2025 Guide)
If you’re self-employed in the UK, you may be wondering — do I really need insurance? The answer depends on what you do, who you work with, and how much risk you’re willing to take on.
Let’s break it down.
✅ Is Business Insurance Legally Required?
For most freelancers: No, insurance isn’t legally required unless:
- You’re hiring employees (then Employer’s Liability is mandatory)
- A client contract specifically demands cover
That said, many clients expect you to have insurance, especially in regulated or high-risk industries.
💼 Why Freelancers Should Consider Insurance
Even if it’s not required by law, insurance can protect you from:
- Claims of negligence or poor work
- Accidents or injuries while working
- Stolen or damaged equipment
- Lost income due to illness or injury
Without insurance, you’d be personally liable for any of those costs.
📦 Types of Insurance Freelancers Might Need
✅ Public Liability Insurance
Covers injury or property damage to a third party during your work. Essential for roles with client contact or site visits.
✅ Professional Indemnity
Protects against claims of bad advice or work. Common for consultants, designers, marketers, and coaches.
✅ Personal Accident
Pays out if you’re injured and can’t work. Great for physical roles like mobile beauticians, dog walkers, security, etc.
✅ Equipment Cover
Protects laptops, cameras, tools, or other gear you rely on.
🔍 So… Do You Actually Need It?
Ask yourself:
- Do I work in people’s homes or public places?
- Could a mistake cost a client money?
- Would losing my equipment stop me working?
- Could I afford to fight a legal claim?
If the answer is yes to any of the above — insurance is worth the peace of mind.
🤝 Compare UK Freelancer Insurance
We’ve reviewed and compared some of the top providers in the UK:
👉 Compare PolicyBee vs Simply Business
💬 Final Thoughts
While business insurance isn’t legally required for most freelancers, it’s often expected — and smart. Just one claim could wipe out your earnings, so having protection in place helps you work with confidence.