Employers' liability: the legal requirement
If you employ people, you must have employers' liability insurance from the day you become an employer, with cover of at least £5 million from an authorised insurer. You can be fined £2,500 for every day you are not properly insured.
GOV.UK lists some exemptions, for example if your only employees are close family members. Check the guidance for your situation: a limited company with employees other than its director usually needs it.
Public liability
Public liability insurance covers claims from third parties for injury or damage caused by your work. It is not a legal requirement, but most main contractors ask construction freelancers for it, often at a specified minimum such as £5 million or £10 million. Check the level each contract requires.
Professional indemnity
Professional indemnity (PI) insurance covers claims that your advice, design or professional service caused a client financial loss. It is particularly relevant to quantity surveyors, project managers, CDM advisers, planners and engineers. Some clients set a minimum PI level in their appointment.
Other cover to consider
- Tools and equipment cover, if you carry expensive kit.
- Personal accident, income protection or sickness cover, because you will not get sick pay.
- Business use on your vehicle insurance if you drive for work.
- Contract works or plant cover if you take on works packages rather than professional services.
Keep your policies in date
A lapsed policy can stop you starting a job. Keep schedules and certificates in one place with their expiry dates, and renew in good time. On 3lanse you can store your insurances, see expiry dates at a glance and show hirers you are in date.
This guide is general information for UK freelancers, checked against the official sources below on the review date. It is not tax, legal or financial advice. Rules change, so check the sources or speak to a qualified adviser about your own situation.