Understanding what business insurance sole traders need

26th July 2021
Written by Qdos Contractor

Did you know that when you are working as a marketing freelancer you need to protect yourself with business insurance? As a sole trader, adding insurance will ensure you and your business do not incur huge costs if something should go wrong. But what sole trader insurance do you need?

Why take out business insurance?

Having freelance insurance will ensure you have peace of mind from having protection from a number of possible risks when you have a business. These could include physical injury, damage to property or even protecting yourself against legal fees should a client bring legal action against you.

What business insurance do I need?

The most popular freelancer insurance is Public Liability, Professional Indemnity and Tax Enquiry insurance. We’ve outlined each of these options below:

What is Public Liability insurance?

This is the most popular policy taken out by those working for themselves (self-employed) or people who are running their own business. Public Liability insurance is important as it will protect you against a situation where a third party (an individual or a business) brings legal action against you because of physical injury, or damage to property caused by you while your business is operating.


Public Liability insurance is designed to defend a case which may be bought against you and pay any damages which might be owed.


It is a popular policy for those who are self-employed, contractors, sole traders and partnerships in a range of industries including those working in marketing roles.

Why do I need Professional Indemnity insurance?

At Qdos, another popular type of insurance for freelancers is Professional Indemnity. This is most relevant to those providing professional advice or services (such as copy writing and design) and protects you against circumstances where you have made an error or omission in your services. Even when you are taking the utmost care with the service you are providing for a client, there is always the chance that mistakes can be made, and result in a client losing money.

Another scenario to consider is when a client alleges that you have made a mistake – even if this is not the case. Professional Indemnity insurance would protect you from what could be a costly dispute. 

The Qdos policy covers your case defence costs plus any liability found owing in the event of a claim, up to the limit of indemnity.

What is Tax Enquiry insurance?

Tax Enquiry insurance for sole traders provides you with professional support if your business was investigated by HMRC. This type of policy will protect you in two ways: the cost of defending your position and the expertise needed to handle such an enquiry.

One of our consultants will handle all correspondence with HMRC from the outset, giving you the reassurance that you have an expert on your side if HMRC did instigate an inquiry.

Why choose Qdos?

Our straightforward service offers:

  • One of the most competitive premiums on the market
  • Documentation issued immediately for instant cover
  • We have policies to suit most areas of creative freelancing or sole traders
  • We provide an account-managed service, so you’ll never be passed around a call centre
  • Tax enquiry claims handled by former HMRC Inspector of Taxes

    Get a quote here
Qdos Contractor
Written by
Qdos Contractor
Award-winning providers of insurance for the self-employed, Qdos are the leading authority on IR35, offering industry-leading employment status services to ensure the flexible working industry thrive. Qdos are the Best Contractor Insurance Provider 2022 and won the Queen’s Award for Enterprise in Innovation 2022 and 2017. 

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