You didn’t have to worry about these in your corporate life because your employer dealt with it - but now it’s with you
If a client claims your advice, service, or work caused them a financial loss – even if you believe you did nothing wrong – professional indemnity insurance covers your legal defence costs and any compensation awarded.
Many contracts and professional bodies require you to have this in place before you can work with them.
Ask yourself
If a client took me to court could I cover the legal costs?
If you ever meet clients in person – at their premises, yours, or anywhere else – and someone is injured or property is damaged as a result of your work, public liability insurance covers you.
Some venues and clients require you to have this before they'll work with you.
Ask yourself
Do I ever work in person with clients or the public? Have I checked whether any of my contracts require this?
If you hold any client data – even an email addresses or invoices – you have a responsibility to protect it under GDPR.
Cyber insurance can help if you experience a data breach, ransomware attack, or a client's system is compromised because of something traced back to you.
Consider especially if you work digitally with multiple clients.
Ask yourself
What would happen if my systems were compromised?
This one is worth understanding even if you're a sole trader (if you are the business – you are the key person) or if you have employees or business partners
Key person insurance is taken out by the business on an individual whose skills, knowledge, or relationships are critical to the business running. If that person dies or is critically ill, the policy pays a lump sum to the business – to help cover lost revenue, recruitment costs, or to keep things running while you recover or reorganise.
Ask yourself
If I – or a key member of my team – was suddenly unable to work, what would the financial impact be on the business itself?
If you run a business with one or more partners or co-directors, this one is important to understand.
Shareholder protection insurance ensures that if one partner dies or becomes critically ill, the remaining shareholders have the funds to buy out that person's share of the business.
Without it, those shares could pass to the deceased's family – who may have no interest in the business, but suddenly have a legal stake in it. This can create complications at an already difficult time.
Ask yourself
If my business partner died tomorrow, what would happen to their share of the business? Have we ever talked about this?
If you employ anyone – even part-time and even a contractor in some cases – employers liability insurance is a legal requirement in the UK.
It covers you if an employee is injured or becomes ill as a result of working for you.
Ask yourself
Do I employ anyone, or am I planning to? Have I checked whether employers liability applies to me?
This is for awareness and educational purposes only - it does not constitutes financial, insurance, or regulated advice. The products and protections listed are general categories – not recommendations for specific products or providers.
For advice tailored to your situation, please speak with a qualified, FCA-authorised adviser - that's exactly what our vetted partners are here for.