Do Self-Employed Contractors Need Insurance?

Why Self-Employed Contractors Need Insurance

When you’re self-employed, you are the business. That means you’re responsible for:

• The quality and safety of your work

• Any damage or injury caused on the job

• The tools and equipment you rely on

• Protecting your income if something goes wrong

Even if you’re a sole trader with no staff, clients, landlords, and main contractors will often require proof of insurance before you can start a job.

And if you think “it’ll never happen to me” — just remember, most claims don’t come from mistakes, they come from accidents, miscommunication, or events outside your control.

What Trades Are We Talking About?

At ABA Insurance, we work with hundreds of self-employed contractors across the UK. Here are just a few of the trades we regularly insure:

• Builders & bricklayers

• Electricians

• Plumbers & heating engineers

• Plasterers & renderers

• Joiners & carpenters

• Roofers & scaffolders

• Groundworkers & landscapers

• Tilers, decorators & painters

• HVAC & ducting contractors

• Dryliners, flooring fitters & ceiling fixers

Whether you’re on site solo or bring in labourers as needed, insurance gives you professional credibility and vital protection.

Key Insurance Types for Self-Employed Contractors

1. Public Liability Insurance (Essential)

Why you need it: If someone is injured or their property is damaged due to your work, you could be held liable. Public liability insurance covers the compensation and legal costs.

Example: You’re fitting a boiler and accidentally crack a client’s granite worktop — this policy covers the repair or replacement cost.

We recommend at least £1M in cover for sole traders, though many clients now ask for £2M–£5M as standard.

2. Tools Insurance

Why you need it: If your tools are lost, stolen, or damaged, how quickly could you get back to work? Tools insurance gets you back on site without paying out of pocket.

Top tip: Ensure your policy covers tools kept in vans overnight — theft from vehicles is one of the most common claims we see.

3. Personal Accident & Income Protection

Why you need it: If you’re off work due to an accident or injury, this type of cover helps replace lost income and cover household bills while you recover.

Ideal for: Any contractor without sick pay or an employer to fall back on — which is most of the self-employed tradespeople we work with.

4. Employers’ Liability Insurance (If You Hire Help)

• Even if you’re self-employed, you’ll need employers’ liability insurance by law if you:

  • Hire an apprentice or labourer

  • Supervise or direct subcontractors

  • Employ a family member or part-time worker

  Penalty for not having it: Fines of up to £2,500 per day.

  This catches a lot of one-man bands off guard — if you’re giving instructions or controlling the job, you likely need this cover.

5. Professional Indemnity Insurance (If You Design or Advise)

If you offer guidance, specs, or drawings — even informally — you could be liable if a client acts on that advice and something goes wrong. This is especially relevant for:

• Design & build contractors

• Electricians specifying lighting layouts

• Heating engineers advising on system design

• Renovators offering layout suggestions

Benefits of Being Insured as a Self-Employed Contractor

• Win better jobs – Many commercial or council contracts require proof of insurance

• Look professional – Insurance shows clients you’re serious and responsible

• Protect your kit – Tools stolen? Covered. Job goes wrong? Covered.

• Protect your income – Accidents happen. Insurance keeps you afloat if you can’t work

• Stay legal – Meet your legal obligations if you hire help

What Cover Do I Need? Every Trade is Different

At ABA Insurance, we don’t believe in off-the-shelf policies. We’ll talk to you about:

• The type of work you do

• The size and value of the jobs you take on

• Whether you work alone or hire in help

• Your tools, vehicles, and kit

• Your client requirements (especially if working under contract)

From there, we’ll build a policy that suits your day-to-day — not someone else’s.

We’ve insured thousands of self-employed tradespeople across the UK, from sole traders just starting out to contractors with years under their belt.

Competitive premiums
Flexible monthly payments
Quick turnaround on quotes
Support from specialists who know the trade

Need a quote or want to review your current policy?
Call us on 01474 833 322 or get a fast online quote at: www.abainsurance.co.uk/trades-insurance-quote/