You’ve started something small on the side. Maybe you’re selling handmade stuff online. Or doing a bit of consulting between jobs. Or helping people with websites at weekends. It’s not full-time. You’re not making loads of money yet. So… do you actually need business insurance? And more importantly, can you even get it?
Yes, you can. And depending on what you’re doing, it might be more important than you think.
A lot of people assume insurance is only for big companies or full-time professionals. But the truth is, many of the same risks apply whether you’re running a business five days a week or five hours a month. The only real difference is how likely those risks are to play out — not how serious they’d be if they did.
Insurance isn’t just for “real” businesses
It’s easy to fall into the trap of thinking, “I’m not really a business, I’m just doing a bit of work on the side.” But if you’re earning money from it — even occasionally — you could be legally and financially responsible for what you do.
That means if a product you sell injures someone, or a client claims your work caused them a loss, you could be liable. Doesn’t matter whether you’re working evenings, weekends, or just when it fits around your day job.
Some side hustles don’t carry much risk. Others do. If you’re giving advice, handling client data, making physical goods, or interacting with the public, the risk of exposure remains.
And if you’ve got stock at home, or you’re going out to meet clients or work on-site, that opens up a few more potential problems — theft, damage, injury claims and so on.
So, what kind of insurance can you get?
The good news is that most mainstream business insurers now offer cover suitable for side hustlers and part-time sole traders. You don’t have to run a limited company.
You don’t need to be VAT registered. And you don’t have to be earning a full-time income.
Policies can often be tailored to reflect your actual level of activity. That means you won’t necessarily be paying the same as someone running a big operation.
If you only need basic public liability or professional indemnity cover, the cost might be surprisingly low, especially if you’re not dealing with high-risk situations or large client contracts.
Some providers also allow you to add items such as stock, tools, legal expenses, or cyber insurance, depending on your specific needs.
And if you don’t want to commit to a full year, a few even offer flexible monthly policies that can be cancelled when things go quiet.
🛡️ Qdos offers flexible business insurance from just £4.58/month, ideal for side hustles and self-employed work of all sizes. Get a quick quote online and choose only the cover you need.
Do I have to tell anyone?
If you’re working from home, it’s worth checking your home insurance policy. Many standard home insurance policies don’t automatically cover business activities, especially if you’ve got stock, tools, or customers visiting the property.
In some cases, simply running a business from your address without notifying the relevant authorities can invalidate your cover entirely.
It’s a good idea to call your insurer and ask if you need to update any information. If they can’t or won’t cover your setup, business contents cover might be a better option.
If you’re employed elsewhere, you don’t usually need to tell your employer about your side hustle, unless it’s in breach of contract or overlaps with your day job. But it’s worth checking your employment terms just in case.
For tax purposes, as soon as your side income goes above £1,000 per year, you’ll need to register with HMRC and submit a tax return. You can find out more in our guide to becoming self employed.
If you haven’t already, Bytestart’s guide on insurance for sole traders is worth a look.
What if I only do it occasionally?
That’s fine – insurers don’t expect you to be running 40 hours a week to qualify for cover. If you’re freelancing occasionally, selling goods now and then, or doing a seasonal service like photography or tax help, you’re still eligible for part-time cover.
In fact, the application process often asks about your work schedule and your expected turnover.
That helps them price the risk appropriately. Some will also ask about previous claims, if any, and how long you’ve been doing this kind of work.
The key thing is not to wait until something goes wrong. It’s better to have a lightweight policy in place and never need it than to be caught out without protection because you didn’t think your side hustle was “real” enough to need it.
In summary
Yes, you can get insurance even if you only run your side hustle part-time. And in many cases, it makes sense to do so.
The cost is usually low, especially if you’re not in a high-risk industry, and having some basic cover gives you peace of mind, whether you’re selling crafts, building websites, or giving one-to-one advice.
If you’re earning money, even just a little, you’re running a business. And with that comes a bit of responsibility. The good news is that protecting yourself is simpler than most people think.
Qdos self-employed insurance from £4.58/month
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