Business insurance is a way to protect your business when something unfortunate happens, protecting you against any losses incurred through the running of your company. It usually incorporates a package of different products that are designed to protect you, your business and your liabilities, while satisfying your legal requirements as a business owner, with each insurance product covering a slightly different aspect. Here we take a closer look at the products available and how a comprehensive business insurance package can work for you.
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The list of business insurance providers on this page is a selection of services available and gives you an idea of the kind of options available. You can find out more about the individual products by visiting any of the providers listed. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts.co.uk will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts.co.uk recommends you obtain independent financial advice.
This depends on how many employees you have, if any. If you have anyone else working for you, then employers’ liability insurance is a must, and after that you’re free to choose which additions you want depending on your circumstances and business interests.
This depends on the type of policy you choose. Employers’ liability insurance can cost as little as £5 a month for the smallest employers, and public liability insurance can start from around £40 a year for small businesses and sole traders. The more cover you add on, the higher the cost will be, but this should never be seen as an excuse to cut corners.
This will depend on your circumstances and type of business. If you employ staff members then you’ll need employers’ liability insurance as standard, and from there you’ll need to consider the cost of your business equipment (for business contents cover) as well as things like business interruption cover and public liability, and professional indemnity insurance should always be considered if you offer some form of advice as part of your service.
This will depend on your circumstances and type of business. If you employ staff members then you’ll need employers’ liability insurance as standard, and from there you’ll need to consider the cost of your business equipmentDo I need business insurance if I run a home-based business?
If you’re the only worker, then technically you don’t need any home business insurance – but it could make sound business sense nonetheless. For starters, you’ll want to check your home insurance policy to see if your business equipment will be covered (and if not, make sure to seek specialist quotes), and from there you may want to consider things like professional indemnity insurance and business interruption insurance too.
(for business contents cover) as well as things like business interruption cover and public liability, and professional indemnity insurance should always be considered if you offer some form of advice as part of your service.
The amount of cover you’ll need can vary depending on your circumstances and the type of policy you have, with things like public liability and professional indemnity insurance offering cover that can run into the millions. In these examples it’s never worthwhile to under-insure – claims can easily escalate, so it makes sense to have sufficient cover in place – while for things like business contents insurance, make sure to value your assets accurately and seek the right amount of cover accordingly.
The cover available depends on the type of business insurance that you opt for. Business interruption insurance, for example, can protect your income in the event you’re unable to work due to things like fire or flooding, while business contents insurance will protect your assets from the same risks. It’s important to look closely at what’s available with each insurance policy, taking care to understand any exclusions, and try not to skimp on cover if you want to be sure you’re adequately protected.
Business insurance for a car will be more expensive than if you use your car solely for personal use, but given that you won’t be able to make a claim without specialist cover, it’s essential to invest. As a general rule, it will add a minimum of £20 to £50 on top of a standard car insurance premium, but as with any type of insurance, the amount you’ll pay will depend on your individual circumstances and the level of cover you opt for, which is why it’s so important to compare the options thoroughly.
If you have employees, you’re legally required to have employers’ liability insurance. Likewise, if you use your car for business purposes or own several vehicles in relation to your business, specialist cover is required by law. Everything else is optional (unless you run a specific type of business, such as a horse riding company, where public liability cover is a legal requirement), but it’s worth considering additional kinds of protection nonetheless.
There are very few insurance policies that will cover the Covid-19 outbreak. Even those that cover business interruption will unlikely have infectious disease cover, and those that do will typically only be covered for certain listed diseases – and Covid-19, given its very recent discovery, won’t be one of them. That said, there are certain aspects of business insurance that will cover the consequences of Covid-19: liability cover will continue to apply for those businesses who have furloughed and home-working staff, for example, business contents cover can be extended to ensure it covers equipment outside the office, and businesses that have unoccupancy conditions will usually be able to extend the allowable unoccupied period. It’s important to discuss any issues with your insurance provider if you’re concerned.
No. Many of these insurance products are legally required, and while this doesn’t necessarily include everything that might be included in a fully comprehensive business insurance package (professional indemnity, contents and cyber insurance, for example, aren’t legally required), it could be financially detrimental to run your business without it. By investing in suitable protection, not only will your business interests be covered, but having insurance to protect you financially against accidents, mistakes, theft, damage and legal fees can provide valuable peace of mind, so for that reason alone should always be considered.
Insurance is an intangible benefit to your business – a service that you have paid for that you may never get to use, but also a service that you hope you will never need to call on. But why wouldn’t you want to fully protect your livelihood, the business you’ve worked so hard to build? Whether it’s theft, fire, a cyberattack or staff injury, incidents in the workplace can be costly and knock you off schedule.
This is why the value of business insurance should never be underestimated, and if you’re looking for a policy (or policies) that can meet your needs, make sure to compare business insurance options to find the best quote, or speak to a business insurance broker who’ll be able to find the best policy for your company.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.