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Do I need personal insurance as a self-employed?

In recent years, we have witnessing a considerable increase in the number of people working as self-employed in the UK. As of April 2022, there were around 4.21 million self-employed workers in the country, according to Statista. 

Whether it's the desire to have more freedom to choose where and when you work or simply the fact that there is a lack of job availability, it's understandable that the 9-5 working structure is not for everyone anymore. 

As a self-employed, you will need personal insurance that reflects your setup. Read this article to understand better why you may need it.

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When you are self-employed, you can't rely on anyone for sickness cover or health insurance, as it happens with normal employees with their employers. 

So, while working as a self-employed, it's essencial to have personal insurance, in order to secure your income and give you and your dependants security, in case an accident happens.

 

What does personal accident insurance cover?

Usually, personal accident insurance covers:

  • Accidental death;
  • Permanent total disablement (PTD);
  • Loss of limb(s);
  • Sight and hearing loss;
  • Bodily injury;
  • Dislocation.

This is designed to protect you against loss of income and medical expenses.


 

Who needs personal accident insurance?

Everyone that works as a self-employed needs personal insurance, but individuals from certain sectors use this cover more than others, like:

  • Construction workers;
  • Couriers and delivery drivers;
  • Extreme or contact sportspeople;
  • Any other profession that involves the regular use of heavy and potentially dangerous machinery or substances;
  • Workers whose job involves the potential for violence, such as security and prison staff, bouncers and police.

 

How much does personal insurance for self-employed cost?

This will depend on different factors, like:
 
  •  Your job (riskier jobs, like the ones refered above, usually cost more);
  • Your location (the fees can vary in different regions of the UK);
  • Your claims history (insurers might think you’re more risky depending on your health record, for example).

 

Is personal accident insurance tax deductible?

No, personal accident insurance is not tax deductible, since it's not considered as an expense strictly related to the business. But business insurance - which you will also probably need as a self-employed or company owner - is! 

 

Working for yourself comes with a lot of freedom, but there are risks too. Because of this, it's important to have protection against some of the risks that you might face in your business as a self-employed. So getting insured is something you should consider!

 


 

How can I spend my tax refund this year (300 × 200 px) (1000 × 650 px)

As a self-employed, you may be eligible for a tax refund. And we can help you to get it back!  

 
Download our app below and get a free quote within 72 hours! 
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Published by Elisa Ribeiro Soares
Elisa Ribeiro Soares