Self-Employed? Your Income Has No Safety Net.
No sick pay. No employer cover. If illness stops you working, your income stops with it. For self-employed people, income protection isn't optional — it's the foundation.
1 in 4 workers will take 3+ months off due to illness before they retire. Employees have sick pay. You don't. Income protection replaces 50-70% of your earnings until you recover.
£0
Self-employed sick pay
1 in 4
Take 3+ months off*
50-70%
Typical income cover
~86%
Claims paid*
*Industry estimates. Source: ABI Protection Statistics.
Verified Client Reviews
Arranged Last 12 Months
Experience
Reference: 989177
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Who This Guide Is For
If you work for yourself and your income depends on you showing up, this applies to you.
Sole Traders
Freelancers
Contractors
Ltd Directors
Partners
What Happens If You Can't Work?
Imagine you break your wrist, have a bad back, or struggle with anxiety. You can't work for 3 months. What happens?
Your income stops immediately
No sick pay, no employer safety net. From day one, you're relying on savings.
Business expenses continue
Rent, insurance, subscriptions, staff — bills don't stop because you're unwell.
Mortgage lenders don't wait
Miss a few payments and you're in arrears. Your home could be at risk.
State support is minimal
ESA is around £90/week and comes with conditions. It won't cover your bills.
With IP: Regular monthly income
Income protection pays 50-70% of your earnings — enough to cover essentials.
With IP: Focus on getting better
No financial pressure means you can take the time you need to properly recover.
With IP: Pays until you're ready
Good policies pay until recovery, retirement, or policy end — not just 12 months.
With IP: Keep your business alive
Pay overheads, retain clients, and return to a functioning business when you're well.
Common Mistakes Self-Employed People Make
These errors cost money or leave you exposed when you need cover most.
"I'm healthy — it won't happen to me"
Most claims are for back problems, mental health issues, and accidents — not rare diseases. Anyone can be affected.
Waiting until you're older
Premiums increase with age. Locking in a rate at 35 is far cheaper than waiting until 45.
Choosing the cheapest policy
Budget policies often have short payment periods or poor definitions. Always check how long they pay and for what conditions.
Wrong occupation definition
"Own occupation" pays if you can't do your job. "Any occupation" pays only if you can't do any job. The difference is critical.
Related Guides
How Much Income Protection Do I Need?
Calculate the right level of cover for your situation.
Deferred Period Explained
Choosing your waiting period and balancing cost vs cover.
Own Occupation vs Any Occupation
Why policy definitions matter for your claim.
Income Protection vs Critical Illness
Monthly income vs lump sum: when to choose each.
Contractor Income Protection
Specialist cover for IR35 and contract workers.
Limited Company Director IP
Cover for directors taking salary and dividends.
Adviser Insight
"Most self-employed clients I speak to have no idea how exposed they are. When I explain that a broken leg or a bout of anxiety could mean 3 months without income, they get it immediately."
"Income protection isn't a luxury for the self-employed — it's the foundation. Life insurance protects your family if you die. Income protection protects everyone if you're too ill to work. For self-employed people, there's nothing else in between."
— Protection Adviser, Your Home Finance
Not Sure If You Need Income Protection?
Answer a few questions about your situation and we'll tell you whether income protection should be a priority — and what other cover you might need.
For most self-employed people, income protection is the foundation of a good protection plan — everything else builds on it.
You'll receive a clear priority summary and the option to speak with an adviser — no obligation.