I can’t afford it, so I don’t have any insurance.

Every client I’ve ever had in the UK has required my service company to have indemnity insurance.

It’s even more important if you’re a sole trader because your liability is not limited. If you royally screw something up and get sued, all your assets are on the line.

Indemnity insurance covers you to a certain amount (usually 1,5, or 10 million). And working through a limited company further limits you to losing only what’s in the company, not your personal assets like your home.

Some clients require it.

No, but I do graphics and marketing. Having properly worded contracts is good enough CYA.

I joined a little contact whorehouse for my side gig and I pay like 10% of my invoices and get insurance and tax and payment processing. It’s cheaper than ADP so I’m happy.