Hiscox Business Insurance
UK specialist insurer selling professional indemnity, public liability, employers' liability and cyber cover direct to freelancers, contractors and small businesses, quoted and bought online.
Features
What Hiscox is
Hiscox is a specialist insurer with roots in the Lloyd's of London market. Its UK business insurance arm sells cover direct to small businesses, sole traders, freelancers and contractors, with quotes and purchase handled online rather than through a broker. Hiscox Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the PRA, which you can confirm on the FCA register.
Covers it sells to freelancers
| Cover | What it is for | Legally required? |
|---|---|---|
| Professional indemnity | Claims that your work or advice caused a client a financial loss | No, but many client and agency contracts require it |
| Public liability | Injury to someone, or damage to their property, caused by your business | No |
| Employers' liability | Claims from your own employees | Yes, once you employ someone (with narrow exemptions) |
| Cyber and data | Data breaches, hacking and the costs of responding to them | No |
| Office and equipment | Laptops, phones and kit used for work | No |
Policies are quoted on what your business actually does, so an IT contractor, a copywriter and a consultant are each priced on the risks of their own work.
Things to check before you buy
- The limit your contracts ask for. Check each client or agency contract for the minimum professional indemnity limit, and whether it is "each and every claim" or "in the aggregate".
- The excess you pay towards each claim.
- Territorial limits. If you have overseas clients, check which countries' courts the policy covers.
- The retroactive date. Professional indemnity is written on a claims-made basis, so the policy in force when a claim arrives is the one that responds. A retroactive date limits cover for work done before it.
- Insurance Premium Tax, charged at 12% on top of the premium.
How it fits with the rest of your setup
Business insurance premiums are an allowable expense for UK sole traders and limited companies. If you are setting up, our freelance business setup checklist puts insurance alongside registering with HMRC and opening a business bank account.
For a fuller explanation of which covers a UK freelancer actually needs, and what the law requires, read our guide to business insurance for UK freelancers.
FreelanceSphere is not an insurance broker and this is general information, not advice. Always read the policy wording before you buy. This is a plain link to Hiscox; we are not paid for it.