If you are a business owner, an independent professional or self-employed, business insurance can help to protect you and / or your company against unexpected costs.
Types of business insurance
Some types of business insurance are required by law:
- if you are an employer you are legally obliged to have employers’ liability insurance to cover the cost of compensating employees who are injured or become ill through work
- if your business uses vehicles you are legally obliged to have commercial motor insurance
Other types of business insurance are optional, such as:
- commercial property insurance, which covers the cost of repairing or rebuilding your business premises, or replacing your stock or equipment
- liability insurance, which covers the cost of compensation claims following fault or negligence brought against you or your business by clients, customers, shareholders, investors, or members of the public
Types of liability insurance include:
Buying business insurance
Business insurance is usually sold as a package, combining a number of different policies under one premium.
The types of policies you need, and the cost of your premium, will be based on a number of factors including:
- the nature of your business
- its annual turnover
- the number of people you employ
- your insurance claims history
You can buy business insurance directly from an insurer, or from a specialist broker through the British Insurance Brokers’ Association (BIBA).
For more information see the ABI guide on insurance for your small business (pdf 76kB).