Protection for Sole Traders
When you're self-employed, there's no sick pay and no safety net. If you can't work, the income stops. We fix that.
Key facts at a glance
- Profession
- Sole Trader
- Recommended priority cover
- Income Protection
- Adviser
- FCA-regulated, whole-of-market UK broker
Reviewed by the LifeInsuranceForMe advice team · Last updated June 2026 · FCA-regulated UK broker
As a sole trader you can often choose a very short waiting period — Personal Sick Pay plans run from as little as one day — which suits people with no sick pay behind them. The right wait is a balance between speed of payout and premium.
Why It Matters
The Risks Sole Traders Need to Plan For
Being your own boss means carrying all the risk yourself. Here's what to plan for.
No sick pay at all
Sole traders don't even get Statutory Sick Pay — illness means zero income.
Personal liability
Business and personal finances are intertwined, so your mortgage is exposed if you can't earn.
Variable income
Irregular earnings make a financial shock from illness even harder to absorb.
You are the business
If you stop, the business stops — there's no one to cover for you.
Recommended Cover
The Right Protection for Sole Traders
Based on the specific risks of your profession, here's what we typically recommend — ranked by priority.
Income Protection
Replaces a percentage of your income if illness or injury stops you working — short or long term.
Life Insurance
A lump sum to clear debts and protect your family.
Critical Illness Cover
A tax-free payout on diagnosis to fund time off and treatment.
Why Your Job Is Different
How We Get Sole Traders a Better Deal
Mainstream insurers often misprice or misunderstand your profession. Here's how we fix that.
Self-employed specialists
We base cover on your real, sometimes variable, earnings.
Day-one cover options
Short deferred periods so you're paid quickly when income stops.
Tax-efficient structuring
We advise on structuring cover sensibly for the self-employed.
"As a sole trader I had no idea income protection even existed for someone like me. The advisor explained everything with zero jargon. Amazing."
FAQs
Sole Trader Insurance — Your Questions Answered
Life Insurance & Income Protection
Sole Trader FAQs — Life Insurance & Income Protection
Common questions UK sole traders ask about protecting their income and family.
Get Your Quote
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What cover are you interested in? (Select all that apply)
🛡️ Life Insurance
Lump sum for your family if you die
💷 Income Protection
Replace up to 70% of income if ill
❤️🩹 Critical Illness
Lump sum on diagnosis
🏠 Mortgage Protection
Clear your mortgage if you die
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