Do I need liability insurance as a self-employed tradesman?

Find out what liability insurance coverage you may need as a self-employed tradesman, and learn how it can protect you.

David Granahan - Writer for NEXT Insurance
By David Granahan
Kelly Hendrickse - editor for NEXT Insurance
Edited by Kelly Hendrickse
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Updated May 29, 2023.

The short answer is yes — you can benefit from liability insurance, regardless of your trade.

As a self-employed tradesman, you may be at risk of various liability claims and other unfortunate circumstances. Some states and trades even legally require liability insurance because of associated risks.

» Not sure about your expenses? Find out the common self-employed expenses

Types of liability insurance you may need

Whether you're an electrician or plumber, there are various liability claims that you may face. These can be covered across several common policies, such as:

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Other insurance options for self-employed tradesmen

Although not strictly liability insurance, tradesmen can also benefit from the following policies:

  • Commercial property insurance: If you have a physical business location, this can provide financial protection should you face damages to the building.
  • Workers' comp insurance: This is only applicable if you hire employees. It can help cover their medical fees and lost income should they suffer injuries while working.
  • Tools and equipment insurance: If your tools, like power drills or wiring, get stolen or damaged while at a job site, this coverage can help.

How NEXT can help cover self-employed tradesmen

Liability insurance can help if you face third-party injuries or property damage claims. Exploring more than one business insurance policy can also be favorable to help other incidents, such as employee injuries or stolen tools.

With NEXT, you can find business insurance tailored for different trades, so you can focus on your job with peace of mind. You can also have instant access to your certificate of insurance once you purchase coverage, and you can share it 24/7 through the NEXT app.

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