Income protection, also known as disability income insurance or salary continuance, provides a regular income if an individual is unable to work due to illness, injury, or disability.
For self-employed workers who lack access to employer-provided sick pay or workplace benefits, this type of insurance is essential for financial stability.
How income protection works
- It covers 50% to 70% of average earnings, ensuring essential expenses – such as rent, mortgage and bills – are paid.
- There’s a deferment period (waiting period) which ranges from four to 52 weeks before payouts begin.
- Payments continue until the policyholder can return to work, reaches a certain age or the policy term ends.
This type of insurance is particularly valuable for self-employed tradespeople, such as electricians, plumbers and carpenters. It’s for those who have irregular income patterns and work in physically-demanding, high-risk environments.
Why do self-employed tradespeople need income protection?
- Workplace injuries
The Health and Safety Executive (HSE) reported 123,000 non-fatal workplace injuries in the construction sector in 2022/23. With no employer sick pay, tradespeople can quickly face financial strain if they’re unable to work.
- Lack of Statutory Sick Pay (SSP)
Unlike employees, self-employed workers do not qualify for SSP, which is only £109.40 per week for up to 28 weeks (as of February 2025).
- The risks of being unable to work
Without an alternative income source, an injury or illness could have severe consequences, such as the iability to pay rent or mortgage, loss of business or clients along with mounting debts and financial hardship.
Why tradespeople may find it difficult to get income protection
While income protection is valuable, many self-employed workers struggle to find affordable and suitable cover if, for example, they work in jobs involving work at heights, heavy lifting or hazardous materials as this can lead to higher premiums or outright exclusions.
Self-employed workers don’t receive fixed salaries, making it difficult for insurers to calculate benefit amounts.
What’s more, they are more likely to face declined applications as many general insurers do not cover high-risk tradespeople, leaving limited options.
Without expert help, many self-employed workers face months of searching, with insurers either rejecting applications or offering unaffordable premiums.
Case Study: Helping a self-employed electrician secure income protection
Client Profile:
Age: 32
Occupation: Self-employed electrician, frequently working on construction sites and at heights
Financial situation: Limited savings, renting a flat, with monthly expenses of £800 rent and £300 utilities
Objective: To find affordable income protection to cover loss of earnings due to injury or illness
Challenges faced
The client spent six months contacting insurers, with most declining his application due to the risk of working at heights. One insurer offered cover at £70 per month, but this was too expensive.
Without cover, he estimated his savings would last only two months if he were unable to work—putting him at risk of eviction.
The Insurance Surgery’s Solution
As a specialist broker, The Insurance Surgery, conducted a market-wide search to find an insurer that would cover his occupation without exclusions.
Policy: Income Protection
Monthly payout: £1,500, providing £900 per month
Waiting Period (deferment): Four weeks
Monthly Premium: £30.00
Cover includes work-related injuries, such as falls at heights, without additional cost.
How Specialist brokers help self-employed workers get cover
A specialist broker can negotiate better premiums. General insurers may quote high premiums or impose exclusions. Specialist brokers find the best balance of price and protection.
Many self-employed workers have irregular incomes. A broker ensures cover aligns with actual income levels to prevent being underinsured or overinsured.
From policy selection to claims, brokers help clients understand their cover and make informed decisions.
Common Myths About Income Protection (and the reality)
Myth 1: I don’t need it because I have savings
Reality: 41% of self-employed workers have less than three months’ savings (Association of Independent Professionals & the Self-Employed).
Fact: Many injuries last longer, making savings insufficient.
Myth 2: Income protection is too expensive for self-employed people
Reality: Specialist brokers can negotiate affordable premiums—as seen in the case study, where the client secured cover for £30 per month.
Myth 3: I can rely on state benefits
Reality: Statutory Sick Pay is only available to employees.
Fact: The self-employed may only qualify for limited benefits like Employment and Support Allowance, which may not cover essential living costs (MoneyHelper).
Find affordable income protection
Contact The Insurance Surgery today—our expert advisers will help you find the best cover for your needs.
Meet our Expert…
Thomas Heyes, senior protection adviser with The Insurance Surgery, is here to answer your insurance questions. You can read more about him and the business in our profile of The Insurance Surgery.
If you have a question about life insurance leave a message in the comments below or email kate.saines@emap.com
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