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.
• 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 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.
• 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. 

Find out more about the different types of business insurance.