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Business insurance

Compare quotes and protect your business

Compare quotes and protect your business

Compare quotes and protect your business

Compare quotes and protect your business

Compare quotes and protect your business

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, and more.

Do I need business insurance?

Some forms of business insurance are understandably more necessary than others. If you run a business and have employees, taking out employers’ liability insurance is a legal requirement.

There are many things that you may want to protect your business against. For example, a key person leaving or an accident that damages your premises can both cause you serious losses. You may also become vulnerable to legal action by employees or clients. No one knows what’s around the corner, so having insurance for your business that could cover you if things go awry is well worth considering.

Other important forms of business insurance to consider, depending on your business area, include public liability insurance, professional indemnity cover and stock insurance.

What are the different types of business insurance?

There are several types of business insurance.

  • Employers’ 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.
  • Public liability insurance: offers you financial protection in case your business activities kill or injure a member of the public or damage their property. If that person takes you to court, it will cover your legal costs and any compensation you might have to pay. Some customers might insist on public liability insurance before they work with you.
  • 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’ve given them bad advice, or that your work has caused a problem and takes legal action against you. 
  • Commercial buildings and contents insurance  could cover your premises and stock against flood, theft and fire.
  • 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. 

Find out more about the different types of business insurance.

Frequently asked questions

How much is small business insurance?

Even if your business is small, it’s important to protect yourself against the risks your company may face. Whether that’s loss or damage of stock, product liability or injury/loss of your employees, there’s a lot to consider. You might think that insurance for all of this is expensive, but the cost of small business insurance depends on a number of variables:

  • Type of business – do you own a business that works in a high-risk field? Investment, property and finance businesses may face greater risks and therefore need higher levels of cover.
  • Level of cover – do you want to insure your company building or stock for a greater amount? The higher you’d like your payout to be, the more you’ll be expected to pay in premiums. Likewise, the level of excess you’re willing to pay will be a factor in determining your premiums.
  • Size of business – although you may consider yourself a small business, how small is small? If you’re still manufacturing lots of products, or are responsible for lots of employees, you may find that premiums are more expensive.

Do I need business insurance for an online business?

Just because your business is online, you should still be considering the potential risks and cover requirements you may face. If you’re an online retailer, you’ll still have a level of stock that may require protection, and you might still have employees and therefore require employers' liability insurance.

You should treat your online business just as if it was a regular one, considering all the potential risks and the appropriate cover.

How do I compare quotes for business insurance?

Whatever type of business you run, it’s easy to compare quotes with Compare the Market. Just give us a few details about you and your business.

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