What is business insurance?

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Business insurance provides a way to protect your business and the parties it interacts with from financial risks, such as property damage, wrong advice or work interruptions. Whether you’re a sole trader working from home or an small business with multiple offices, business insurance can provide financial and legal support in the face of compensation claims or legal action.

Combined business insurance is made up of different types of insurance, but some of the core products include, office insurance, professional indemnity insurance, public liability insurance and employers’ liability insurance, in addition to more specialist products such as cyber and data risk protection and treatment liability insurance.

No two businesses are the same and it’s important to understand the risks your business faces in terms of accidents, damage, theft and legal disputes when deciding the level of business insurance cover to choose.

What does business insurance cover?

Business insurance protects you from the possible risks and losses faced in the day-to-day operations. These vulnerabilities are unique to your business and the type of insurance you need should be highly tailored to reflect this.

There are various types of business insurance products on offer to small UK businesses, each tailored to cover varying issues, from property damage and injury to legal costs.

Professional indemnity insurance covers a business against the legal cost of a claim made by a client regarding the work you did for them.

Employer’s liability and public liability insurance protect you against claims of accidental injury and damage to property. One policy is designed to help small businesses deal with claims from their own employees, including situations where they have sustained an injury during their work. The other liability policy covers compensation and legal defence from members of the public.

There are also other more specific insurance products you can add on, including cyber and data protection to cover you in the case of a security breach.


I'm a small business, do I need commercial insurance?

Depending on industry, the premises the company works from, services offered and other various factors, every business faces risks of some sort. Business insurance can cover you against these risks, protecting businesses from potential hurdles like legal fees, accidents, theft and professional errors.

You can find out more about the different products and required level of commercial insurance for your profession and get a quote for your business. Or if you’re a contractor, freelancer or sole trader,  our self-employed insurance policy is a tailor-made option to protect your new venture.


What business insurance do I need?

The type of business insurance you need will depend on factors such as how many people you employee, whether you deal with the public and what premises you work from.

In terms of legality, most businesses with staff will be required to have employers’ liability insurance, while public liability insurance is essential for businesses in contact with members of the public. Other forms of cover can protect from other factors such as theft, legal fees and data protection.

Read more on what level of business insurance do I need?


How much does business insurance cost?

Taking factors such as the size of your business and the nature of your work into consideration, the cost of business insurance varies according to the types of cover required. Hiscox business insurance quotes start from £105 a year and custom policies can be tailored specifically for your business and the risks faced, so you only pay for the cover you need.

Read more on how much does business insurance cost?


Commercial insurance information – getting a quote

If you’re ready to apply for a commercial insurance quote today, you’ll need a few things to hand: the month and year you started trading, your annual turnover, the number of people who work in your business and the years of experience you have in your trade. From there, you’ll be able to select the level of cover you’d like for your business and get a quote.

If you’re looking for more commercial insurance advice, see our advice hub and find answers to frequently asked questions about business insurance.

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