Can Self-Employed Get Income Protection?

Yes, self-employed workers, sole traders, freelancers, and contractors can get income protection insurance. Coverage is typically 50-70% of gross income based on 2-3 years of accounts or tax returns. Premiums are based on occupation, age, health, and chosen waiting period.

Contractor income protection

Learn more about contractor income protection in our detailed guide.

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Learn more about income protection with redundancy in our detailed guide.

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Learn more about critical illness vs income protection in our detailed guide.

Can self-employed people get income protection?

Yes, income protection is available for self-employed workers, sole traders, freelancers, and contractors. Coverage is based on your average earnings, typically from your last 2-3 years of accounts or tax returns.

How much income protection can I get if self-employed?

You can typically insure 50-70% of your gross income. Insurers calculate this from your accounts, tax returns, or SA302 forms. Some policies cover up to 80% for lower earners.

What proof of income do self-employed need?

Insurers typically require 2-3 years of accounts, tax returns (SA302), or accountant's certification. Newer businesses may need business bank statements and contracts.

Is income protection tax deductible for self-employed?

Personal income protection premiums are not tax deductible. However, if your business pays the premiums as a benefit, it may be allowable - but payouts would then be taxable. Seek advice from an accountant.

How long is the waiting period for self-employed?

Waiting periods (deferred periods) range from day 1 to 12 months. Longer waiting periods mean cheaper premiums. Many self-employed choose 4-8 weeks to balance cost with protection.

Does income protection cover self-employed redundancy?

Standard income protection covers illness and injury, not loss of work or business failure. For redundancy-style cover, you'd need a separate policy like Accident, Sickness & Unemployment (ASU) cover.

Quick Answer

How Does Income Protection Work for Self-Employed?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Income protection for self-employed pays if illness/injury stops you working. Cover 50-70% of income. Proof via accounts/tax returns. Choose waiting period from day 1 to 12 months.

Self-employed workers don't have statutory sick pay to fall back on, making income protection particularly important. If you can't work due to illness or injury, income protection pays a regular monthly benefit until you recover, reach the policy end date, or reach retirement age.

Cover is subject to policy terms. Pre-existing conditions may be excluded or affect premiums.

Key Points

1Cover 50-70% of gross income
2Proof via accounts, tax returns, SA302
3Waiting periods from day 1 to 12 months
4Pays until recovery, policy end, or retirement
5Premiums not tax deductible personally
6Covers illness and injury, not business failure

Eligibility Criteria

Minimum 2-3 years trading history (most insurers)
Income evidenced by accounts/tax returns
Occupation must be insurable
Health declaration required
UK resident for tax purposes

Typical Timeframe

Applications take 1-4 weeks depending on medical underwriting. Claims typically pay within 4-6 weeks of the waiting period ending.

Next Steps

1Gather recent accounts or tax returns
2Calculate how much income you need to protect
3Choose appropriate waiting period
4Compare quotes from multiple insurers
5Speak to a protection adviser

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How Does Income Protection Work for Self-Employed?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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