Being your own boss has plenty of upsides. You set your hours, choose your clients and answer to nobody but yourself. But when it comes to sick pay, that independence comes with a catch: if you can't work, you don't get paid.
Here's everything you need to know about sick pay when you're self-employed and how Income Protection Insurance (often referred to as sick pay insurance for self-employed people) can help and what you can do to protect your income if illness or injury keeps you off the tools.
The short answer is no. Unlike employees, self-employed tradespeople are not entitled to Statutory Sick Pay (SSP). SSP is a government benefit paid by employers to their staff, and because you don't have an employer, you don't qualify.
If you're off sick for a week, a month, or longer, your income stops. Your bills don't.
There are a few state benefits you may be able to claim if you're unable to work through illness, including Employment and Support Allowance (ESA) and Universal Credit. However, the amounts are modest, and the eligibility criteria can be strict. They're unlikely to cover your regular outgoings.
It's also worth knowing that these benefits can take time to come through. If you rely on weekly or monthly income to cover your mortgage, rent, or business costs, a gap in payments can cause real problems fast.
The most effective way to protect your income is to take out Income Protection Insurance, sometimes described as sickness cover for self-employed workers or sick pay insurance. It's designed specifically for situations where you can't work because of illness or injury, and it pays you a regular monthly benefit to keep things ticking over. In simple terms, it acts as insurance to replace your income if you're off sick and unable to work.
Here at Rhino, Income Protection Insurance pays up to 60% of your gross income when you're unable to work. That gives you a real financial cushion while you recover, without having to drain your savings or rely on family to cover the bills. Take a deep-dive here.
Cover costs from £66.24 a year - that works out at just over £5.50 a month.
Rhino's Income Protection Insurance pays a daily benefit (one thirtieth of the monthly benefit you choose) if you're unable to work due to accident or illness. It also pays a lump sum equal to 12 months' benefit if you die as a result of an accident.
There is a 30-day deferred period, agreed at the start of your policy. And for sickness claims, there's a 90-day waiting period from the policy start date.
You need to be a UK resident aged 18 to 65 and actively working at least 16 hours a week to be eligible. Cover ends at age 67.
They're different products. Personal Accident Insurance pays lump sums for specific injuries such as fractures, permanent disablement, and accidental death. Income Protection pays an ongoing monthly benefit when you're unable to work, regardless of the cause.
Tradespeople can hold both policies at the same time. If you break your leg on site and need six weeks off, Income Protection helps with your day-to-day costs while you're recovering. Personal Accident Insurance might also pay out a separate lump sum for the fracture. Find out more here.
Some tradespeople prefer to self-insure by building up a cash reserve for rainy days. That's a sensible habit regardless, but relying on savings alone carries risks. A serious illness or injury could put you out of action for months, not days. Most people's savings wouldn't cover six months of mortgage payments, household bills and living costs comfortably.
Income Protection Insurance means you're not gambling your financial security on the hope that nothing serious happens. This is why many self-employed people choose sickness insurance or income protection cover instead of relying on savings alone.
Protecting your income is one piece of the puzzle. It's also worth making sure you have the right cover for your day-to-day work. Most tradespeople need Public Liability Insurance as a minimum requirement to get on site, and if you employ anyone, Employers' Liability Insurance is a legal requirement.
Don't leave your income to chance. Find out how much Income Protection Insurance or self-employed sick pay insurance could cost for you.
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