What is business insurance?
Business insurance can cover you against losses if things go wrong in the course of your business activities. It can include cover for being sued for compensation, damage to your commercial premises, cyber attacks and more.
Frequently asked questions
Why is business insurance important?
Any interruption to your business, whether it’s in the form of a key person leaving or an accident that damages your premises, can cause you serious losses.
Plus, if something goes wrong you’re vulnerable to legal action by employees or clients. No one knows what’s around the corner, so having insurance that could cover you if things go awry is well worth considering.
What are the different types of business insurance?
There are several types of business insurance.
- Employer’s liability (EL) insurance: this is a legal requirement if you have even one employee. It protects you against the cost of compensation claims if one of your staff gets injured or ill through working for you.
If you don’t have this kind of insurance in place you could be fined £2,500 every day if you’re not properly insured. Your policy must cover you for at least £5 million.
- Professional indemnity insurance: this isn’t a legal requirement but you might be asked to have it by other businesses you’re working with. Professional indemnity insurance gives you cover if a client says you have given them bad advice, or that your work has caused a problem and takes legal action against you.
- Business interruption insurance: could help compensate you for financial losses caused when your business isn’t able to operate as normal.
- Commercial buildings and contents insurance could cover your premises and stock against flood, theft and fire.
- Credit risk insurance typically insures you against the risk of a customer not paying their bill.
- Cyber insurance: cyber crime against business rose by more than 60% in 2017, according to the Office for National Statistics. So insurance that can cover the cost of repairs, losses and damage to your computer may be worth considering.
- Key man insurance: if someone who’s essential to the running of your business can’t work for you, this type of insurance can compensate you for that loss.
- Landlord insurance: having landlord cover in place typically protects you if your rental property is damaged or there is a fire. You can also include protection against loss of earnings due to an insured event, such as fire.
If you own vehicles in relation to your business, you’ll also need to have car or van insurance.
How do I compare quotes for business insurance?
Whatever type of business you run, it’s easy to compare quotes with comparethemarket.com. Just give us a few details about you and your business.
You can also speak to a business insurance specialist to talk you through the options.