Financial help if you run your own small business after an accident

By Chris Salmon | Updated: September 11, 2025

If you run your own business, an accident that prevents you from working can create serious financial pressure. Unlike employees, you are not entitled to Statutory Sick Pay. However, there are a number of benefits, grants and support schemes that can provide financial help if you cannot work due to injury or illness.

At a glance

Self-employed business owners are not eligible for Statutory Sick Pay.
You may be able to claim Universal Credit or Employment and Support Allowance (ESA).
Personal accident insurance or critical illness cover can help if you already have a policy in place.
Grants and support may also be available from local councils or business organisations.

State benefits you may be able to claim

If you are self-employed and unable to work because of an accident, you may qualify for certain state benefits:

Universal Credit – a means-tested benefit to help with living costs. Find eligibility details on our Universal Credit page.
Employment and Support Allowance (ESA) – for people whose health limits their ability to work. More information is available at gov.uk ESA guidance.
Personal Independence Payment (PIP) – if your injury causes long-term health problems or limits your daily activities.

Insurance policies

Many self-employed people take out private cover to protect themselves if they cannot work. These include:

Personal accident insurance – pays out a lump sum or weekly benefit if you are injured.
Critical illness cover – provides a one-off payment if you are diagnosed with a specified condition.
Income protection insurance – replaces part of your income if you are unable to work due to illness or injury.

If you already have one of these policies, check the terms and contact your insurer as soon as possible after your accident.

Grants and business support

Depending on where you live, you may also be able to access:

Local authority hardship funds – some councils provide grants or reduced business rates for small business owners unable to trade.
Business support organisations – charities and trade associations sometimes offer grants or loans to self-employed workers facing financial difficulty.
Self-Employment Income Support Scheme (SEISS) – this scheme is now closed, but similar emergency support may be available in the future during national crises.

Making a personal injury claim

If your accident was caused by unsafe working conditions, a third party’s negligence, or faulty equipment, you may be able to make a personal injury compensation claim. Compensation can help cover your lost earnings, medical expenses, and any future financial losses caused by your injury.

For self-employed business owners, this can be particularly important, as your ability to generate income directly depends on your health. A successful claim may provide:

General damages for pain, suffering and loss of amenity.
Special damages for lost income, business losses, and extra costs linked to your injury.

Most claims are handled on a No Win, No Fee basis, so you do not pay legal fees if your claim is unsuccessful. To get started, speak to a specialist solicitor who will assess your case and advise you on the next steps.

Managing your business during recovery

In addition to financial help, consider how your business can continue to operate:

Delegate work to employees, subcontractors or freelancers where possible.
Talk to clients about your situation and agree adjusted deadlines or temporary cover.
Seek advice from Citizens Advice or a financial advisor if you are struggling to manage cash flow.

Key takeaways

Self-employed business owners cannot claim SSP but may be eligible for Universal Credit, ESA or PIP.
Private insurance policies can provide important financial protection if you have cover.
Check whether your local council or trade body offers hardship grants or other support.
Seek professional advice to manage your business and finances while you recover.

External references

GOV.UK: Universal Credit - income support if your earnings fall while you recover.
GOV.UK: New Style ESA - contributory benefit if you cannot work and meet NI rules.
GOV.UK: Access to Work - grants for workplace adaptations, travel and support workers.
Business Debtline - free, independent advice for sole traders and small businesses.
Citizens Advice: UC if you’re self-employed - plain-English guidance on rules and reporting requirements.

About the author

Chris Salmon is a legal commentator and co-founder of Quittance Legal Services. He has written extensively about workplace accidents, employment rights and the claims process. Chris's work has been cited in national media and he regularly contributes practical guidance to help injured workers understand their options.

More about Chris and WAAC

Last reviewed September 2025 by Chris Salmon

Have you been injured at work?

If you have been injured at work in the last 3 years, you may be able to claim financial compensation.

Find out more about making a work accident claim:

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