What is commercial insurance?

The definition of commercial insurance is a broad type of business insurance policy that protects businesses and sole traders against common financial and reputational risks. This form of insurance policy can combine various types of insurance cover, such as public liability or professional indemnity, to provide financial and legal support in the case a claim is made against you by an employee, client or member of the public. The commercial insurance meaning is a general term used to refer to all forms of business insurance cover, combined in one policy.

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What does commercial insurance cover?

Commercial insurance can cover for a broad range of risks and vulnerabilities a business can face in day-to-day operations, including bodily injury, property damage, professional negligence, financial loss, data breach and more. It can insure you against claims made by employees, customers and members of the public.

The core types of commercial insurance are public liability cover, employers’ liability cover and professional indemnity cover. There are also more specialist forms of commercial business insurance covers available, to protect anything from your business premises to the niche equipment you rely on to get the job done. These covers include, but are not limited to:

What is commercial liability insurance?

When it comes to business insurance, ‘liability’ refers to your business being responsible for an accident, mistake or wrongdoing in the eyes of the law. Commercial liability insurance is designed to cover to claims made by a third party against your business for bodily injury, illness or property damage caused by the work that you do. The third party could be an employee, a customer, a client or a general passer-by.

This type of cover can offer financial support to cover compensation payments, legal fees and medical bills.

Do I need commercial insurance cover?

There are a multitude of different forms of commercial insurance designed to safeguard businesses from different types of risks. The type of commercial insurance your business needs will depend on the industry you function within, the nature of your work and whether you have employees, among other factors.

Of all types of commercial cover, employees’ liability insurance is the only one that could be a legal requirement for your business, as any business in the UK that employs one of more members of staff is obliged to hold this cover. There are exceptions to this rule, however, which you can read more about in our employers’ liability FAQ hub. This type of cover covers claims made by an employee for injury or illness caused by their job.

All other types of commercial insurance can be purchased at your own decision, though they can offer peace of mind that you are covered financially if things don’t go to plan. Public liability and professional indemnity are the most popular types of commercial cover, as they can protect you from claims made against you by a member of the public or client for bodily injury or property damage caused by your work, or for professional negligence or breach of information.

At Hiscox we can create a tailored commercial insurance policy that combines the appropriate covers to suit your unique business needs. We also offer profession-specific policies, as we understand that different businesses face different risks.

How much does commercial insurance cost?

How much your commercial insurance will cost will depend on factors such as the size of your business, nature of your work and the level of risk you face, among other considerations. 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.

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.

Get a quote for your business in minutes

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  • Immediate coverage and documentation
  • No admin fees if you amend your policy

Need more help? Speak to our UK-based experts. Call us on 0800 2800 351

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