Business insurance: a simple guide
Business insurance: a simple guide
From professional indemnity insurance to employers’ liability insurance, use our guide to help you decide on the right types of insurance for your business.
What is business insurance?
Business insurance can protect you against losses incurred during the running of your business – for example, if a customer or employee makes a claim against you, or if your equipment is damaged.
The terms ‘commercial insurance’ and ‘business insurance’ are often used to describe employers’ liability and public liability insurance – the two main types of business insurance. But there are other types of insurance available, each one covering a slightly different aspect of business.
And as each policy is different, it’s important to know what’s actually covered by your business insurance so you can fill in any gaps.
The different types of business insurance that you need to be aware of are:
- Public liability insurance
- Employers’ liability insurance
- Product liability insurance
- Professional indemnity insurance
- Business interruption insurance
- Business property coverage
- Key-man insurance
- Credit risk insurance
- Cyber insurance
Our page lets you know what each of the business insurance types is for so you know which to consider for your company.
Public liability insurance – for injured clients or their damaged property
If a client slips and falls at your business, or you accidentally damage something of theirs while you’re working, this insurance could cover the claims and legal fees.
Employers’ liability insurance – for any business with employees
You’re legally required to have this insurance if you have any employees at all, even just one – temps, part-time or full-time. It can help cover the cost of claims made against you if an employee is injured or gets ill while working for you.
Product liability insurance – for the products you supply
This can help compensate anyone who has suffered damage or injury because of a product you designed, repaired, or supplied. You don’t have to be the manufacturer to be liable for damages.
Professional indemnity insurance – for a client’s lost sales or damaged reputation
Professional indemnity insurance is for businesses that offer knowledge, skills or advice as part of their work. If your work leads to a client’s loss of sales or damaged reputation, this insurance can help cover the cost of legal fees and claims.
Business interruption insurance – keeps finances running when your business can’t
Taking out a business interruption insurance policy will cover you for loss of sales and profits during a period that you’re unable to operate due to unforeseen circumstances like floods or fires.
Business property coverage – for the physical contents of your business
This is insurance for the things that make your business tick – computers, mechanical equipment, tools, machines and stock.
Key-man insurance – for your valuable employees
If there are particular people who keep the business going, you can insure them. Then, if for some reason those individuals can’t work you can be compensated for that loss.
How can I compare cheap business insurance?
Getting your business covered isn’t about finding the cheapest option; it’s about finding the right package at the right price. Use our business insurance comparison service where we’ll bring you a choice of insurance providers based on your needs, so compare today and see how much you could save.