Business insurance

What is business insurance?

Small business insurance is a way to protect your business from financial losses like compensation claims, property damage and theft.

You can tailor your quote and choose from different cover types to meet the needs of you and your business needs.

No matter what type of business you own, it's important you understand the risks your business could face. So you won't be left out of pocket if something unexpected happens.

What are the different types of business insurance?

The main types of business insurance include:

Public liability insurance provides cover if a member of the public injures themselves or makes a claim against your business. For example, someone slipping and injuring themselves on a wet floor when there's no wet floor sign.

Employers' liability insurance protects you, your business and your employees if a member of staff makes a claim. For example, a member of staff falling off scaffolding, or an office employee tripping over a cable and breaking their wrist.

Product liability insurance can protect your business if a customer makes a claim against a faulty product you've made. For example, if you're a manufacturer and a customer makes a claim after buying a product from you that doesn't work properly.

Professional indemnity insurance can protect you if someone says you've provided inadequate advice, services or designs to a customer.

Do I need small business insurance if I work from home?

Since the Covid pandemic, many more people are now working from home and don't have to commute to a workplace.

But even if you work from home, you may still need small business insurance.

If you employ someone else, you'll need to have employers' liability insurance, for example. You also need to think about your customers and your stock.

If customers come to your home, for example, there's a risk they could injure themselves and sue you. Similarly, if you send a product to them that's faulty, they could claim compensation.

How much does business insurance cost?

Business insurance costs will vary depending on the type of business you're running and the needs of your business, including:

• The size of your business
• How many employees you have
• Your business type
• The level of cover
• The excess amount

The size of your business as the bigger your business, the higher the risk of something happening to your stock or staff. Larger companies usually cost more to insure.

How many employees you have. If you hire employees, you'll need employer's liability insurance. The more employees you have, the more expensive it'll be.

Your business type can determine your business' risk level to insurers. If there's a high risk of you making a claim like if you hire lots of staff and own a busy restaurant chain, the price will be more expensive.

The level of cover you choose can impact your insurance costs. The higher the cover level, the more expensive the policy will be.

The excess amount is the sum you'll need to pay if you make a claim. You can often set your own excess amount and choosing a high excess can reduce your monthly payments.

Insurance policies come in packages, offering a range of different cover types and optional extras. It’s important to remember that the cheapest quote isn’t always the best one. It’s about finding the right cover for you and your business.

Can I get business insurance before registering my business?

Yes, you can get business insurance before registering your business. When you buy business insurance, you probably won’t be asked for your company registration number or other registration details.