Our Complete Guide: Business Insurance

Business insurance protects your business against the financial risk of theft and damage to your tools or equipment, claims of poor workmanship or advice, or if you damage a third-party’s property or injure someone. The three main types of business liability insurance cover legal costs and any successful compensation claims made against your business.

Combined business insurance policies can cover your business equipment and stock against loss, damage or theft, and it can also offer cover for employee theft and fraud, property damage and money that’s lost if something prevents you from working (business interruption). But the cost of business insurance is usually driven up by your business liability cover:

Employers’ liability insurance: covers your business in case any current or previous employees become injured or sick because of work they did for you - and they then make a claim against your company.

Public liability insurance: covers your business in case someone outside of your company is injured or their property is damaged because of your business.

Professional indemnity insurance: covers your business in case a client claims against you for any business or financial losses they experience because of the work you did for them.

The type of business insurance you need will depend on the size of your company and the kind of work you do, and you can choose whether to take out combined business insurance or independent liability covers and add on any extra protection you need.

If you work as a trader then you may also need to consider other business insurance types such as business van insurance, specialist tools cover, goods in transit cover and personal accident cover.