🤔 Confused About Which Insurance You Need?
As a freelancer or sole trader in the UK, you’re likely to hear about both public liability and professional indemnity insurance. They’re often mentioned together, but they cover very different risks.
In this guide, you’ll learn:
- What each one does
- Who needs which type
- Whether you might need both
🔍 What Is Public Liability Insurance?
Public liability insurance covers you if someone is injured, or their property is damaged, because of your work.
✅ Covers:
- Trip-and-fall accidents
- Damage to a client’s property
- Injuries caused by your equipment or setup
🔧 Example:
You’re a mobile hairdresser. A client trips over your extension cable and breaks their wrist. Public liability covers the compensation and legal fees.
🔍 What Is Professional Indemnity Insurance?
Professional indemnity insurance protects you if a client claims your service or advice caused them financial loss.
✅ Covers:
- Mistakes in your work
- Missed deadlines or delivery failures
- Copyright or confidentiality breaches
🔧 Example:
You’re a freelance designer. A client claims your design led to lost sales and sues for damages. Professional indemnity insurance helps cover legal costs and compensation.
🧠 Key Differences
| Feature | Public Liability | Professional Indemnity |
|---|---|---|
| Covers | Injury/damage to others | Financial loss from advice or service |
| Who sues you | Members of the public, clients | Clients |
| Example Risk | A client trips on your gear | You miss a project deadline |
| Who needs it | In-person workers, trades, events | Consultants, creatives, digital services |
For hands-on professionals like mobile hairdressers, public liability is often a must.
💼 Do Freelancers Need Both?
It depends on your work.
You likely need Public Liability if you:
- Visit clients or work in public spaces
- Provide services in people’s homes
- Handle physical equipment around others
You likely need Professional Indemnity if you:
- Give advice or design services
- Deliver creative or digital work
- Handle contracts, data, or legal-sensitive projects
Many freelancers need both — and you can often bundle them together.
If you’re unsure what that looks like for your type of work, check out our guide to freelance photographer insurance.
🛍️ Where to Get Both Covers
Most UK freelancer-friendly insurers offer both types:
✅ PolicyBee
– Specialist in sole traders, creatives, and consultants
– Bundle cover easily (PI + PL)
– Excellent UK support
✅ Simply Business
– Compare quotes from multiple insurers
– Add optional cover as needed (tools, cyber, more)
✅ Superscript
– Flexible monthly cover
– Popular with digital freelancers and creatives
Not sure which provider fits you best? Here’s a direct comparison of PolicyBee vs Simply Business to help you decide.
✅ Final Thoughts
If you’re unsure which insurance you need, ask yourself:
- Do I work around people or property? (→ public liability)
- Do I give advice or deliver creative work? (→ professional indemnity)
Many freelancers carry both. It’s affordable, protects your reputation, and keeps you ready for whatever the job throws at you.