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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.

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.

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.

As a rough guide, standalone public liability for a sole trader runs from roughly £60-£300/year (more for higher-risk trades and £5m-£10m limits). Many tradespeople end up spending £1,000-£2,500/year once tool and van insurance are added — van cover alone is often the biggest single line. If you employ staff, employers liability typically adds around £60-£300 per employee per year (higher for high-risk manual trades, and cheaper per head as your headcount rises). These are indicative market figures (Simply Business, NimbleFins, Trade Direct, 2026) — always get a quote for your own trade, turnover and claims history.

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.