Is public liability insurance mandatory?

Public liability is not legally required for sole traders, but is effectively essential for tradespeople. Most clients, main contractors, and property managers require a minimum of £2 million cover. Some commercial contracts require £5m or £10m.

When is employers liability insurance required?

Employers liability insurance is a legal requirement if you employ anyone (including apprentices and labour-only subcontractors in some cases). The minimum cover is £5 million and you must display the certificate. Fines for non-compliance are up to £2,500 per day.

What does professional indemnity cover?

Professional indemnity covers claims arising from your professional advice or design work. It is essential for trades that design or specify (e.g., electrical designers, heating engineers). Architects and structural engineers always need it, and some trade accreditation schemes require it.

How much should I budget for insurance?

A typical sole trader tradesperson spends £1,000-£2,500/year on public liability, tools, and van insurance. With employees, employers liability adds £400-£800 per employee. This typically represents 2-5% of turnover for a small trade business.

Can I claim insurance as a business expense?

Yes - all business insurance premiums are allowable expenses for tax purposes. This includes public liability, employers liability, professional indemnity, tool insurance, and van insurance. Keep your certificates and receipts as evidence.

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Insurance Cost Calculator

Estimate your total annual insurance costs for your trade business

Your Trade

Public Liability Level

Public Liability Premium

How We Calculate This

Enter the annual premium for each type of insurance cover you hold or need. The calculator totals your essential cover (public liability, employers liability) and optional extras (professional indemnity, tools, van, personal accident, legal expenses), then breaks the total down into monthly and daily costs so you can factor insurance into your day rate and job pricing.

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Last updated: March 2026

All calculations are estimates. Verify with your supplier.