When I first started looking at business insurance for freelance work, the confusing part wasn’t getting a quote.
It was figuring out what I actually needed to insure.
One provider talked about public liability. Another focused on professional indemnity. Then there were legal expenses, cyber cover, equipment insurance and employers’ liability.
For a freelancer working from a laptop, it can feel like overkill.
But then I looked at what could actually go wrong.
A photographer could accidentally damage a client’s equipment. An IT consultant could make an error that costs a business money. A designer could deliver work that a client claims caused a financial loss. A tradesperson could damage someone’s property while working.
The risks aren’t necessarily huge every day. The problem is that one expensive claim can be very different from the normal ups and downs of freelance income.
This guide looks at some of the main business liability insurance providers available to UK freelancers, what each is good for, and how I’d compare them before buying.
What Is Business Liability Insurance?
“Business liability insurance” isn’t one single type of policy.
For freelancers, the two types you’ll hear about most often are:
- Public liability insurance
- Professional indemnity insurance
They protect against different types of problems.
Public liability generally deals with claims involving injury to other people or damage to their property because of your business activities.
Professional indemnity is designed around claims that your professional advice, work or services caused a client financial loss.
Business.gov.uk explains the distinction in similar terms and notes that professional indemnity can be required in certain regulated industries.
That’s why choosing insurance based simply on the phrase “business liability” isn’t enough.
You need to understand the actual risk attached to your freelance work.
Do UK Freelancers Legally Need Liability Insurance?
For most freelancers, public liability insurance isn’t a universal legal requirement.
However, that doesn’t mean you can always work without it.
A client may require you to have a particular level of cover before allowing you onto their premises.
A contract may also specify a minimum level of insurance.
Professional indemnity can be mandatory for certain regulated professions or activities.
And if you employ people, employers’ liability insurance is generally a legal requirement.
Business.gov.uk currently states that employers’ liability insurance is legally required when people work for you, while public liability and professional indemnity depend on the nature of the business and circumstances.
So before buying anything, ask:
“What does my client contract require?”
That’s often more useful than simply asking what another freelancer bought.
Public Liability vs Professional Indemnity
This is probably the most important distinction for freelancers.
Public Liability
Imagine you’re a freelance photographer hired for a corporate event.
While moving your equipment, you accidentally damage an expensive piece of the venue’s property.
That’s the type of situation public liability insurance is designed to address.
It’s about injury to third parties or damage to their property arising from your business activities.
A freelance electrician, cleaner, personal trainer, videographer or tradesperson may therefore have very different reasons for considering public liability.
Professional Indemnity
Now imagine you’re an IT consultant.
A client relies on your professional advice. An error in your work allegedly causes the client a financial loss.
That’s a different type of risk.
Professional indemnity insurance is designed for claims relating to professional mistakes, negligence, errors or omissions, subject to the policy terms.
The FCA describes professional indemnity insurance as liability insurance that can respond when a third party claims to have suffered a loss, usually because of professional negligence.
For many consultants, developers, designers, accountants and other professional freelancers, PI may be more relevant than public liability.
Some freelancers may need both.
My Top Business Insurance Providers for UK Freelancers
There isn’t one insurer that is automatically best for everyone.
Your profession, turnover, clients, contracts, location and risk level can all affect what you’re offered.
With that in mind, these are some providers and comparison options worth investigating.
1. Simply Business — Best Starting Point for Comparing Quotes
Simply Business
For a freelancer who doesn’t know where to start, Simply Business is one of the first places I’d check.
The main attraction is that it isn’t limited to one insurer. It offers tailored quotes from a range of insurers and lists providers including AXA, Hiscox, Allianz, AIG, Zurich and others.
That’s useful because you can compare different combinations of cover without filling out a completely separate application with every insurer.
Simply Business currently advertises public liability cover from £5.40 per month for up to £2 million, with the published figure based on a specified customer sample rather than a guaranteed price for every freelancer.
Its professional indemnity page currently shows quotes from £6.90 per month, again based on a particular customer sample and policy assumptions.
Best for
- Freelancers comparing several providers
- Sole traders
- Small businesses
- People buying public liability and PI together
- Freelancers who want an online quote
One thing I’d check
Don’t automatically choose the cheapest quote Simply Business displays.
Open the policy details and compare the cover limits, excesses and exclusions.
Simply Business UK business insurance
2. Hiscox — Strong Option for Professional Freelancers
Hiscox
Hiscox is particularly interesting for freelancers whose work is professional or consultancy-based.
Its self-employed insurance offering includes public liability and professional indemnity options, with cover tailored around the type of business.
That makes it worth investigating if you’re a:
- Software developer
- IT consultant
- Management consultant
- Designer
- Marketing professional
- Photographer
- Business consultant
- Other professional freelancer
One thing I like about this type of approach is that the policy starts with the actual business activity rather than treating every freelancer as the same.
That’s important.
A freelance graphic designer doesn’t present exactly the same risks as a freelance builder.
Best for
Professional freelancers and consultants who want tailored cover.
Hiscox says some of its business policies can also provide access to specialists in areas such as legal, data, cyber and PR support.
3. AXA — Worth Comparing for Broader Business Cover
AXA
AXA is another major insurer freelancers can encounter when comparing business insurance.
One advantage of using a large insurer is the breadth of business insurance products available.
But I wouldn’t select AXA simply because it’s a familiar name.
I’d compare the actual policy against alternatives.
For example, if you’re a freelance consultant, you might be comparing:
AXA PI + public liability
against
Hiscox PI + public liability
The important question isn’t which logo you recognise.
It’s which policy provides the protection your contract and business actually require.
AXA is also among the insurers available through Simply Business’s business insurance comparison service.
Best for
- Freelancers wanting a large established insurer
- Small businesses
- Professional services
- Freelancers comparing broader business cover
4. Markel — Worth Looking At for Specialist Professional Risks
Markel
Markel is another insurer that appears in the UK business insurance market.
It’s available through comparison arrangements such as Simply Business, alongside providers including Hiscox, AXA, AIG, Allianz and Zurich.
For freelancers, the main reason to consider specialist insurers is that professional risks can be quite specific.
An accountant, architect, consultant and software contractor don’t necessarily need identical insurance.
Best for
Freelancers whose professional activities require more tailored liability protection.
5. Allianz — Useful for Higher or More Specialist Requirements
Allianz
Allianz is another established insurer available in the UK business insurance market.
It’s worth including when you’re comparing quotes, particularly if your business has requirements that go beyond a very basic freelance policy.
For example, a freelancer working with larger corporate clients may face contractual requirements for particular limits of liability.
Don’t assume a standard policy automatically satisfies those requirements.
Check the contract first.
Best for
- Larger client contracts
- Freelancers with more complex requirements
- Businesses moving beyond simple sole-trader arrangements
- Specialist risks
What About £1 Million or £2 Million Liability Cover?
This is where I would pay close attention to your contracts.
You may see public liability options such as:
£1 million
£2 million
£5 million
The correct amount depends on your business and contractual requirements.
For example, a small freelancer working entirely remotely may have very different exposure from someone regularly visiting construction sites or public venues.
Some clients may specifically require £5 million of public liability cover.
So don’t simply choose £1 million because it’s cheaper.
If your contract says £5 million, £1 million doesn’t satisfy the requirement.
Simply Business currently offers public liability limits including £1 million to £5 million.
How Much Does Freelancer Liability Insurance Cost?
There isn’t a single UK price.
I’ve seen online examples where the difference between professions is surprisingly large.
Simply Business currently publishes example pricing showing that professional indemnity can start from £6.90 per month for a particular customer sample, while its public liability offering starts from £5.40 per month for another defined sample.
Those numbers shouldn’t be treated as your personal quote.
Your price can depend on:
- Your profession
- Annual turnover
- Experience
- Claims history
- Cover limit
- Excess
- Client type
- Where you work
- Whether you visit client premises
- Number of employees
- Type of services
- Contract requirements
For example, a freelance writer working from home may receive a very different quote from a self-employed electrician.
A Practical Example: Freelance Web Developer
Let’s say you’re a freelance web developer working with small UK businesses.
You work from home.
You don’t have employees.
You rarely visit client premises.
Your biggest concern might not be someone tripping over your equipment.
It could be a client claiming that an error in your work caused them financial loss.
That makes professional indemnity particularly relevant.
You might still consider public liability if you occasionally work at client offices or events.
You could also investigate cyber insurance if you’re handling sensitive client data.
The important point is that the type of work determines the risk.
Example: Freelance Photographer
Now change the freelancer.
You’re a wedding photographer.
You’re carrying cameras, lighting and other equipment into venues.
You could accidentally damage venue property.
Someone could potentially trip over equipment.
A client could also have a dispute over your professional service.
Your insurance needs may therefore be different from those of a remote copywriter.
Public liability could be particularly relevant because you’re physically working around members of the public and client property.
Professional indemnity may also be worth considering depending on your contracts and services.
Example: Freelance IT Consultant
Now imagine an independent IT consultant.
You might spend most of your time working remotely.
Public liability may not be your biggest concern.
Professional indemnity could be more important if clients depend on your technical advice.
Cyber cover could also deserve consideration if your work involves handling sensitive information, systems or data.
This is why copying another freelancer’s insurance package isn’t always a good idea.
What Should Freelancers Compare?
When comparing policies, I’d create a simple checklist.
1. Cover Limit
Is it £1 million, £2 million, £5 million or another amount?
Does your client contract specify a minimum?
2. Excess
How much would you have to pay toward a claim?
A lower premium with a very high excess isn’t necessarily a bargain.
3. Professional Indemnity
Do you need protection against claims relating to professional advice, errors or omissions?
4. Public Liability
Do you visit clients, work at events or interact with the public?
5. Legal Expenses
Does the policy include legal expenses, or is it an optional extra?
6. Retroactive or Previous Work
This can matter for professional indemnity because a client may raise a complaint after work has already been completed.
Check the policy wording carefully.
7. Territorial Limits
If you work with clients outside the UK, check where the policy applies.
Don’t assume “UK freelancer” automatically means international work is covered.
8. Contract Requirements
Read your client agreement.
This is one of the easiest ways to determine what level of insurance you actually need.
A Mistake I Would Avoid: Buying Insurance Based on Price Alone
Suppose you receive three quotes:
Provider A — £70/year
Provider B — £95/year
Provider C — £130/year
It would be tempting to click Provider A.
But then imagine Provider A only includes £1 million public liability, while your client requires £5 million.
The £70 quote isn’t actually solving your problem.
The £130 quote might still not be the best option, either.
You need to compare the policies on an equal basis.
Same cover.
Same limits.
Similar excess.
Similar business activities.
Only then does the price comparison become meaningful.
What If You Work From Home?
This is another detail freelancers sometimes overlook.
If you’re running a business from your home, check your existing home insurance arrangements.
Your ordinary household policy may not automatically provide appropriate cover for business equipment or business activities.
Business.gov.uk specifically advises businesses to update existing insurance arrangements if they use their home or car for business purposes.
So don’t assume that because your laptop is insured at home, your freelance business is automatically covered.
Do You Need Employers’ Liability Insurance?
If you’re genuinely working alone as a sole trader with no employees, employers’ liability usually isn’t the same issue as it is for a business employing staff.
Once you employ people, however, the rules change.
Business.gov.uk states that employers’ liability insurance is legally required when people work for you, subject to the applicable rules and exemptions.
This is worth checking before taking on your first employee.
Don’t confuse:
“I’m self-employed”
with
“I can never need employers’ liability insurance.”
Your business structure and working arrangements matter.
What Freelancers Shouldn’t Insure Against
Insurance isn’t a substitute for ordinary business management.
If your laptop becomes old and slow, that’s generally a replacement or maintenance issue—not something you should expect liability insurance to solve.
Similarly, normal wear and tear isn’t the same as accidental damage.
And if a client simply doesn’t like a creative decision, that doesn’t automatically create an insured claim.
Insurance responds according to the policy wording.
That’s why reading exclusions is just as important as reading the list of benefits.
My Simple Comparison Method
If I were choosing insurance today as a UK freelancer, I’d do it in this order.
Step 1: Write Down Your Work
Describe exactly what you do.
Don’t just write “freelancer”.
Write:
Freelance software developer working remotely for UK SMEs.
or:
Freelance photographer working at weddings and corporate events.
The more accurately you describe your work, the more useful your quote should be.
Step 2: Check Client Contracts
Look for requirements such as:
- £1 million public liability
- £2 million public liability
- £5 million public liability
- Professional indemnity
- Specific insurer requirements
Step 3: Compare Multiple Quotes
Start with a comparison service such as Simply Business, then investigate direct insurers where appropriate.
Step 4: Compare the Policy Documents
Don’t compare only the headline price.
Step 5: Check the Excess
Make sure you could comfortably afford it if you needed to claim.
Step 6: Check Exclusions
This is especially important for professional indemnity.
Step 7: Keep Your Certificate
Once you purchase the policy, save the certificate and policy documents somewhere accessible.
Some clients may ask for proof before allowing you to start work.
Frequently Asked Questions
Is public liability insurance mandatory for UK freelancers?
Generally, no. There isn’t a universal legal requirement for every freelancer to have public liability insurance. However, clients, venues or contracts may require it.
Is professional indemnity insurance mandatory?
Not for every freelancer. However, certain regulated professions and activities can have specific requirements. The FCA, for example, requires professional indemnity insurance for certain regulated firms.
Is £1 million enough?
It depends on your business and contracts.
If a client requires £5 million, then £1 million isn’t enough for that contract.
Can I get public liability and professional indemnity together?
Yes. Many business insurance providers allow freelancers to combine different types of cover into one policy.
Which provider is cheapest?
There isn’t one provider that is cheapest for every freelancer.
Premiums depend on your profession, risk, turnover, claims history and selected cover.
Do online freelancers need public liability?
Not necessarily.
If you work entirely remotely, your public liability exposure may be lower than someone regularly working at client premises.
However, professional indemnity may still be relevant depending on the services you provide.
Final Thoughts
The biggest mistake I would make as a freelancer isn’t choosing the wrong insurer.
It’s buying insurance without first understanding what could actually go wrong in my particular business.
A freelance photographer, software developer, electrician and marketing consultant can all call themselves self-employed, but their insurance needs can be completely different.
For most freelancers, I’d start by understanding the difference between public liability and professional indemnity.
Then check your client contracts.
After that, compare several providers on a genuine like-for-like basis.
Simply Business is useful as a starting point because it can compare quotes from multiple insurers, while providers such as Hiscox, AXA, Markel and Allianz are also worth investigating depending on your profession and requirements.
And don’t let a very low monthly price make the decision for you.
The right policy is the one that matches your work, satisfies your contractual requirements and gives you sensible protection against the risks that could genuinely damage your freelance business.