When you're self-employed in the trades, being off work doesn't just disrupt your schedule. It stops your income. No sick pay. No HR department. No fallback.
Income Protection Insurance is designed for exactly that situation. It pays you a monthly benefit if you're unable to work due to accident or sickness, so you can focus on getting better rather than worrying about how to cover your costs.
This guide covers everything you need to know about Income Protection Insurance: what it covers, how it works, what the exclusions are and how to make a claim. Whether you're a sole trader weighing up your options or you've already got a policy and want to understand it better, you're in the right place.
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Income Protection Insurance pays you a regular monthly benefit if you're unable to work because of an accident or sickness. If you're signed off by your doctor and can't carry out your work, the policy steps in to help cover your ongoing costs whilst you recover.
The monthly benefit is based on a percentage of your earnings, up to a maximum limit of cover per month that you can choose before taking out the policy. If you're employed, you can claim up to 60% of your gross monthly income. If you're self-employed, it's up to 60% of your taxable monthly income. It's not a replacement for your full wage, but it's designed to help you stay on top of your essential outgoings whilst you're out of action.
Here at Rhino, the Income Protection Plan also includes an Accidental Death Benefit. If you die as a result of an accident, your policy pays a lump sum equal to 12 times your chosen monthly benefit. More on that below.
Employed workers have some protection built in: Statutory Sick Pay, employer sick pay schemes and HR support. Self-employed tradespeople have none of that. If you're a plumber, electrician, builder, carpenter or any other tradesperson working for yourself, your income depends entirely on your ability to turn up and do the job.
Income Protection Insurance is particularly worth considering if:
You're self-employed and have no sick pay to fall back on
You work in a physically demanding trade where the risk of injury is real
You have regular financial commitments such as a mortgage, taxes or car finance that need to be met each month
You don't have enough savings to cover several months without income
To be eligible for Rhino's Income Protection Insurance, you need to be aged between 18 and 65, resident in the United Kingdom and actively working. That means either employed for a minimum of 16 hours a week, or self-employed.
This is the core of the policy. If you're unable to work due to an accident or sickness, and your doctor confirms you're unfit to work, you can claim a monthly benefit once the 30-day deferral period has passed.
The benefit is paid at 1/30th of your monthly benefit for each day you're continuously unable to work. So if your monthly benefit is £1,500, you'd receive £50 for each day you're off, paid monthly.
Payments continue until one of the following happens:
You're fit to return to work
You've received the maximum number of monthly payments for your chosen benefit period
You retire, pass away or cease to be a UK resident
If you're well enough to return to work on a phased basis (reduced hours or a different role at a lower salary), you may still be able to claim a proportion of your monthly benefit to make up the difference. Many tradespeople want to get back on site as soon as they're able, even if they can't immediately return to full capacity.
One useful rule to know: if you have two separate periods of accident or sickness less than three months apart, the policy treats them as one continuous claim. So if you go back to work for a few weeks and then have to stop again, you won't lose your claim history.
If you die as a direct result of an accident, the policy pays a lump sum equal to 12 times your chosen monthly benefit. So if your monthly benefit is £1,500, your beneficiaries would receive £18,000.
This benefit is separate from the accident or sickness benefit and doesn't affect any ongoing claim. It covers death caused solely and directly by an accident. It doesn't cover death from natural causes or sickness.
Like all insurance, Income Protection Insurance has exclusions. Understanding these before you take out a policy means there are no surprises if you ever need to make a claim.
If you've had a condition, received treatment for it or been given advice about it in the 24 months before taking out the policy, it counts as pre-existing. You won't be able to claim for that condition. The exception is if you've been completely symptom-free and haven't consulted a doctor about it for 24 months before your claim.
This is one of the most important exclusions to understand before you buy. If you have a long-term health condition, it's worth reading the policy wording carefully or speaking to us directly to understand how it might affect your cover.
Sickness benefits don't apply if your sickness occurs within the first 90 days of taking out the policy. This is standard across most income protection products and is designed to prevent claims for conditions that already exist when the policy starts. Accident benefits aren't subject to this waiting period in the same way.
The policy excludes claims for most back and spine conditions, including disc problems, sciatica and general musculature injuries. The exception is if a specialist confirms an acute spinal fracture, spinal cord compression, spinal stenosis, spinal infection or spinal tumour, with imaging evidence where relevant.
Back injuries are common in the trades. It's worth understanding this exclusion clearly before you take out the policy.
Stress, anxiety and depression are excluded unless a doctor has diagnosed psychosis or an organic brain disorder, and an appropriate specialist has confirmed that diagnosis. This is a meaningful limitation that's worth factoring into your decision when comparing income protection options.
Normal pregnancy and childbirth are excluded. If you're pregnant, you won't be able to claim for sickness during the two weeks before or four weeks after your due date. If you experience complications beyond what would normally be expected, speak to us to discuss your specific situation.
The policy also doesn't cover claims arising from cosmetic or non-medically necessary procedures. Alcohol or drug-related conditions aren't covered either, unless the substance was prescribed by a doctor and not for the treatment of addiction. Deliberate self-harm, criminal acts and accidents that occur whilst travelling to countries the Foreign, Commonwealth and Development Office advises against visiting are also excluded.
There are three key things to understand: the deferred period, the benefit period and the monthly benefit amount. Getting these right is what makes the policy work for you.
The deferred period is the length of time you must be off work before you can start claiming. Under this policy, the deferred period is 30 days. This means you must be signed off work for a minimum of 30 days to be eligible to make a claim.
It is important to note that you do not have to wait for the 30 days to have passed before you can begin your claim — once a doctor or medical professional has signed you off for a period of 30 days or more, you can submit a claim for this incident.
The benefit period is the maximum length of time the policy will pay out for a single claim. You choose this at the outset, and can choose from 3, 6 or 12 months' worth of cover. Once you've reached the maximum number of monthly payments for a given claim, payments stop, even if you're still unable to work.
If you return to work for a continuous period of three months after reaching the maximum payout, you become eligible to make a new claim.
You choose your monthly benefit, up to £2,500, when you take out the policy. The cap is 60% of your gross monthly income if you're employed, or 60% of your taxable monthly income if you're self-employed. Income Protection Insurance is designed to help you manage, not to replicate your full income.
If you're self-employed, your taxable income is calculated as the monthly average of your earnings for the six months immediately before your claim starts, as declared to HMRC. You'll need to provide evidence of this if you make a claim.
If you have other policies that also cover accident or sickness, the total benefit across all policies may be capped. It's worth factoring this in if you already have other protection in place.
The policy runs for one year. You can pay in full at the start or spread the cost across 12 monthly instalments. The policy is renewable annually, though renewal isn't guaranteed. Cover ends at age 67 at the latest.
If you need to make a claim, contact Rhino as soon as possible. You can get in touch by:
Phone: 01455 852100
Post: Claims Department, Windsor House, Troon Way Business Centre, Humberstone Lane, Thurmaston, Leicestershire, LE4 9HA
You'll need to provide evidence that you're unfit to work. The first day of your claim is counted as the day your doctor confirms you're unable to work. You won't receive your chosen benefit for any period before that sign-off date.
For sickness claims, you need to remain under the continuing care of a doctor throughout the claim. You may be required to submit further evidence. In some cases we may arrange a medical examination at our expense to validate your claim.
If you're employed, you'll need to provide evidence of your gross earnings: wage slips from your last three months and potentially your P60. If you're self-employed, you'll need to provide evidence of your taxable income as declared to HMRC.
Keep paying your premium throughout any claim. If a payment is missed, your policy ends and the protection stops.
Yes. Rhino's Income Protection Insurance is available to self-employed tradespeople. You need to be paying Class 2 National Insurance contributions and actively working at the time you take out the policy. Your monthly benefit is calculated from your taxable income as declared to HMRC, so you'll need a clear record of your earnings.
The deferred period is the waiting time between becoming unable to work and the point at which your monthly benefit starts. This is set at 30 days, meaning you must be signed off work by a doctor or medical professional for at least 30 days to be eligible to make a claim.
Stress, anxiety and depression are excluded unless a doctor has diagnosed psychosis or an organic brain disorder and a specialist has confirmed it. This is a meaningful limitation worth factoring into your decision when comparing income protection options.
Not straightaway. Any condition you've been treated for or been aware of in the 24 months before taking out the policy is excluded. However, if you've been completely symptom-free and haven't received any treatment or advice for that condition for 24 months before your claim, it may no longer count as pre-existing. Always check the policy wording or speak to us if you're unsure.
You may still be able to claim. If you're returning on a phased basis or in a different role at a lower salary, the policy can pay a proportion of your monthly benefit to make up the difference. The amount is calculated based on your ongoing circumstances and you'd need to provide evidence of your reduced earnings.
Most back and spine conditions are excluded unless a specialist confirms a serious diagnosis such as an acute spinal fracture, spinal cord compression, stenosis, infection or tumour, with imaging evidence. General back pain, disc problems and muscle injuries are not covered. Given how common back problems are in the trades, this is one of the most important exclusions to be clear on before taking out the policy.
The policy runs for one year at a time. You can pay in full at the start or in 12 monthly instalments. Cover ends at age 67 at the latest, and also ends if you retire, leave the UK or stop paying your premium.
They're similar but they work differently. Income Protection Insurance pays a monthly benefit if you're unable to work due to accident or sickness. Personal Accident Insurance pays a lump sum if you suffer a specific injury as a result of an accident. Personal Accident Insurance doesn't cover sickness. The two policies complement each other well, and many tradespeople choose to hold both. For more information, read our guide.
Income Protection Insurance covers your personal earnings if you can't work. But there are other risks worth considering too. If a customer or member of the public makes a claim against you for injury or property damage, Public Liability Insurance is what you need. If your work involves any design, advice or specification, Professional Indemnity Insurance is worth looking at. And if you have employees, Employers' Liability Insurance is a legal requirement.
If you're a self-employed tradesperson, your ability to earn depends entirely on your ability to work. Income Protection Insurance won't replace your full wage, but it gives you the breathing room to recover properly, keep on top of your bills and get back on site when you're ready.
It's worth reading the policy carefully, particularly around the pre-existing conditions exclusion, the 90-day sickness waiting period and the back and mental health exclusions, so you know exactly what you're getting. And if you've got any questions, we're here to help.
If you're a self-employed tradesperson and you can't work, your income stops. Income Protection Insurance keeps money coming in whilst you recover. This guide covers what's covered, how the deferred period works, what's excluded and how to claim.
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