Self employed indemnity insurance is professional indemnity bought by a person rather than a company, and the difference matters more than the paperwork suggests. A claim above the limit falls on the individual, which makes the limit a decision about personal assets rather than about a balance sheet.
Personal liability, without a company in the way
A limited company absorbs liability up to its own assets. A sole trader does not. That single fact argues for buying a higher limit than a company of the same size would, because the consequence of being short is personal rather than commercial.
What the cover answers for
Financial loss suffered by a client because of a negligent act, error or omission in your professional work, plus the cost of defending the allegation. Not injury, not property damage, and not the cost of redoing work you simply did badly.
If you incorporate later
The company becomes the insured for work it contracts, and the personal policy needs run off cover for everything done before. Keeping both in place for a period is normal and is far cheaper than discovering the gap when a claim arrives about pre incorporation work.
Questions people ask about self employed indemnity insurance
Is it different from a company's policy?
The same cover, with more reason to buy a higher limit, because a claim above it falls on the individual rather than on a company.
What happens if I incorporate?
The company insures work it contracts, and the personal policy needs run off cover for work done before incorporation.
Does it cover injury to a client?
No. That is public liability. Professional indemnity answers for pure financial loss from your work.