In the last year, the number of self-employed workers has risen by 174, 000 the equivalent of 478 every day.
This is according to new research from business insurance provider Direct Line for Business, which also found that the number of self-employed workers in the UK has risen from 3.8m to nearly 3.7m. This represents a rise of 23 per cent.
One in seven UK workers are now self-employed, which means increased competition for contracted work.
However, 91 per cent of UK businesses hire contractors, and 31 per cent claim to do so frequently, demonstrating a positive attitude towards this section of the workforce.
Around 68 per cent of these business owners would require contractors to have professional indemnity (PI) cover to perform consultancy services for their company. The average level of PI expected is 715, 000.
Given the increasing levels of competition in this area of the UK workforce, any self-employed worker who doesnt have PI insurance is doing themselves a disservice, according to Jane Guaschi, business manager at Direct Line for Business.
aside from the employment implications, professional indemnity insurance is an important factor for anyone offering advice or professional services, said Guaschi.
Letitia Booty is a special projects journalist for Business Advice. She has a BA in English Literature from the University of East Anglia, and since graduating she has written for a variety of trade titles. Most recently, she was a reporter at SME magazine.