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Find cheaper business insurance tailored to your commercial needs

  • Compare quotes online from just £10.83 per month¹

  • Bundle insurance products that cover all your business needs

  • Discover quotes from 14 major UK insurers²

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Compare business insurance quotes from 14 major UK insurers2

Comparing business insurance from multiple providers makes it easy to find our best deals at the most competitive price.

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151% of customers paid up to £10.83 a month direct debit for a standard public liability insurance policy. MoneySuperMarket data collected between October 2023 and December 2023

2Accurate as of February 2024

What's business insurance?

Business insurance refers to a range of insurance policies designed to protect businesses from financial losses due to various risks and unforeseen events.

These policies can cover different aspects of a business, including property damage, legal liabilities, and employee-related risks.

The specific types of insurance a business needs depend on several factors such as the nature of the business, its size, and the industry it operates in.

How can business insurance help my business?

  • Covers legal expenses for workplace accidents and injuries

  • Can supplement lost wages and revenue

  • Can replace lost or damaged tools and equipment

  • Protect your commercial property and its contents

  • May also include support services, such as legal advice

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What are the different types of business insurance?

Your business can tailor its insurance policy by choosing the specific types of coverage it needs. It's important to include enough protection to guard against unexpected events, but the ideal amount of coverage will vary based on the nature of your business operations.

There are three main types of business cover:

  • Public liability

    Protects your business if a member of the public is injured or their property damaged by your business activity, crucial for customer facing operations

  • Professional indemnity (PI)

    Designed to help cover legal costs in the event that you are accused of providing faulty work or advice that leads to a client's financial loss.

  • Employers’ liability

    Covers compensation claims and legal fees if an employee falls ill or suffers an injury due to their job. It's legally required in the UK even if you have just one staff member.

Why do I need business insurance?

If you're still wondering whether business insurance is right for you, it's worthwhile to ask yourselves a few questions:

  • Do you have employees?
    If you have any employees that aren't family – including volunteers – then you will need employers' liability insurance to operate in the UK

  • Could you afford to replace your business assets?
    There are several different types of insurance to help you recover lost equipment and tools in the event of a fire, flood, or theft

  • Can you afford to keep your business if you need to pause operations?
    Business interruption insurance can cover loss of revenue, loss of profit and additional expenses if an insurable event prevents you from operating

  • Could you afford your legal fees if you make a mistake?
    Public liability and professional indemnity are two valuable types of business insurance that can help you afford expensive legal fees if you or your employees make a mistake

  • Do you have employees that are vital to your business?
    With personal accident insurance, your business will be compensated if a valuable employee is involved in an accident and is unable to work

Is business insurance a legal requirement?

The only form of business insurance that's a legal requirement in the UK is employers' liability insurance, which is required for any type of business that employs one or more people - even on a casual basis.

If your employees are immediate family members, such as a spouse, parents, siblings, or children, you typically don't need employers' liability insurance. But, if your business is set up as a limited company, this exemption doesn't apply.

However, various industry regulators oblige businesses to have certain types of insurance to be allowed to operate. For instance, solicitors, accountants and healthcare professionals normally need professional indemnity insurance to operate.

Other types of business insurance

There is a range of different types of business insurance products that will help you protect the different parts of your business. Here are some of your options:

  • Plus

    Legal expenses cover

    Legal expense insurance covers up to £1,000 per claim for fees related to legal disputes and offers access to legal and tax support services

  • Plus

    Business interruption insurance

    Business interruption insurance covers lost income or gross profit if an insured event like a fire or flood stops you from trading

  • Plus

    Personal accident cover

    Cover yourself and your employees for accidents. It includes benefits for bodily injury and death as well as access to health support services

  • Plus

    Business building and contents

    Protect commercial properties against damage to the building or its contents with commercial buildings insurance and business contents insurance

  • Plus

    Tool insurance

    Tool insurance will protect the tools that you and your employees rely on. It covers the replacement of your tools if they are lost, damaged, or stolen

  • Plus

    Stock insurance

    This covers stock and materials that are an essential part of your business or trade if they are lost, stolen, or damaged

  • Plus

    Office equipment

    Office insurance can protect your office equipment for damage or loss as well as equipment for a home business

  • Plus

    Product liability insurance

    If you are a seller of products, product liability insurance will cover legal fees if one of your products causes injury to a customer

  • Key Man Insurance

    Key person insurance provides financial protection to a business in the event of the death or critical illness of a vital employee, compensating for the potential loss of income.

How much is business insurance?

When it comes to insurance, it's worthwhile to find policies that offer great value cover as opposed to cover at the lowest cost.

According to MoneySuperMarket data, 51% of customers paid up to £10.83 per month in 20231 for public liability insurance, making it an affordable protection even for small businesses.

The cost of business insurance typically depends on the following:

  • Insurance type

    Different business insurance types are all differently priced, so it's worth it to consider your options

  • Industry

    Different industries and professions face different risks, which will affect the cost of insurance

  • Business size

    Having more employees or a greater annual turnover will usually make insurance more expensive

  • Cover levels

    The more policies you have or the more your insurance covers, the higher your premiums will be

  • Claims history

    Having a history of insurance claims or facing legal action can make insurance more expensive

  • Excess

    Volunteering to contribute to the cost of claims could help you save money on your business insurance

151% of customers paid up to £10.83 a month direct debit for a standard public liability insurance policy. MoneySuperMarket data collected between October 2023 and December 2023

Workplace injuries cost Great Britain £7.7 billion annually in 2021/22

In 2021/22, workplace injuries in Great Britain racked up an estimated annual cost of around £7.7 billion according to the HSE. Combined with new cases of work-related ill health, this was estimated to cost as much as £20.7 billion per year.

Workplace injuries continue to be one of the most expensive setbacks for businesses, but the safety net provided by business insurance can be an invaluable protection. With a policy in place, you'll have the support you need to cover these expensive emergency costs.

You shouldn't use personal insurance to protect your business...

"If you own a small business or a start-up, you should know that most types of personal insurance exclude 'business use' as standard. This includes motor insurance, home insurance, and even some elements of travel insurance. This means that you can't claim for any items owned by your business on a personal insurance policy.

So, business items kept in your home, vehicles you use for your business, and business equipment you take out of the country may all be at risk without the right insurance.

That's why the extra cost of taking out insurance for your business can be very worthwhile."

Alicia Hempsted - Insurance Expert

Get tailored business insurance quotes with MoneySuperMarket

Comparing business insurance quotes with MoneySuperMarket is the easiest way to find an affordable deal on cover. Here's how it works: 

  • Tell us about your business

    Let us know about your business and what it does, and we'll find deals tailored to your requirements

  • Compare deals

    You'll be able to compare your offers by cost, level of protection and any extras that are available

  • Choose the one you like

    Once you've found the right deal for you, just click through to the provider to finalise your purchase

What do I need to compare business insurance?

When you start your search for business insurance, there are a few pieces of information you should have on hand. Providers will ask for this information to give you accurate quotes and determine whether they'll give you the cover you want:

  • Tick

    Your business details

    You need to tell you providers about you and your business. This includes your business address, what your business does, and how old it is

  • Tick

    Personal details

    As well as details about your business, you may need to provide some personal details as well, such as your name and date of birth

  • Tick

    Employee details

    Providers will ask you to disclose how many employees your business has as well as whether they are permanent or temporary contractors

  • Tick

    Policy requirements

    To get a quote, you need to tell us what kind of policy you're looking for an how much cover you want. You need to also disclose any preferred optional extras

  • Tick

    Cover type details

    Depending on the type of business insurance, you may need to give more specific details, such as your content value or key person details

  • Tick

    Legal history

    You may need to provide honest information about any of your business's past or ongoing claims and legal disputes

Professional indemnity insurance is a type of insurance that protects construction professionals from financial losses resulting from claims of professional negligence. This can include claims for: 

  • Errors in design or workmanship 

  • Failure to meet the client's requirements 

  • Breach of contract 

  • Loss of data or documents 

  • Infringement of copyright or intellectual property 

PI insurance is essential for all construction professionals, as the cost of defending a claim can be high, and the consequences of losing a claim can be even worse. 

Public liability insurance in construction is a type of insurance that covers a construction business for legal liability arising from accidents or injuries to third parties, or damage to their property.

This type of insurance is essential for protecting businesses from the financial consequences of accidents that occur on their worksites. 

The amount of cover you need for a construction business will depend on a number of factors, including: 

  • The size of your business 

  • The type of work that you do 

  • The level of risk involved 

  • The requirements of your clients 

  • The regulations in your industry 

In general, it is advisable to have at least £2 million of public liability insurance and £1 million of professional indemnity insurance. However, you may need more cover depending on the specific risks of your business. 

The simplest way to reduce the cost of a business insurance policy is to increase your voluntary excess. This is the amount you agree to contribute to cover costs if an incident occurs. A higher excess is usually an indicator to your insurance provider that you won't make small, frivolous claims, so they will reduce your premiums.

If increasing your excess isn't an option, it may be worthwhile to reassess the insurance needs of your business. Rather than automatically renewing your policy each year, it can save you money to look at the value of your insurance policy and assess whether your cover is cost effective.

If you have employees working for you, then you will probably need employers' liability insurance. Other types of business insurance aren't a legal requirement but can provide valuable protection, especially:

  • Professional indemnity insurance will cover you in the event that have made a mistake while providing a service for a client

  • Business and office equipment insurance will cover any of your important equipment that you keep at home or a rented premises

  • Stock insurance can be worthwhile if you are selling items online and want to insure them while they're being stored on your premises

  • Legal expenses insurance can help you cover the legal cost of contract disputes, data protection, tax protection, corporate identity theft and more

  • Business interruption can help support your business if, for example, your office building is flooded and you're unable to work until new equipment is bought

The only insurance that you are legally required to own as a sole trader is employers' liability insurance, which you would only need if you hire employees.

No other types of insurance are legally required but there is very good reason to consider them. As a sole trader, all business expenses fall on you. If something goes wrong on the job, that means that you will be responsible for covering costs.

For that reason, it's worthwhile to consider public liability insurance at least to protect you from expensive legal fees.

No, you don't need to register your business to buy business insurance. You can buy business insurance before you register your business or as self employed. However, it is generally a legal requirement that you register your business.

The only compulsory business insurance is employers' liability, which you will need if you have hired any employees for your business.

Other types of business insurance, like public liability, aren't legally required but there certain trades where they may be required for other reasons.

Commercial property insurance is another term for business building insurance. This type of policy will insure the property that you use for your business against structural damage. This includes cover for fire, vandalism, and flooding.

Commercial property insurance is only a worthwhile insurance if you actually own the building you use for business operations. If you rent the property, it is typically the responsibility of the actual property owner to take out insurance to cover the building.

If you only rent your business building, then you would only need to insure the contents of the building, which can be covered by business and office equipment insurance as well as stock insurance.

Business interruption insurance will cover your business for loss of income or gross profit if an unexpected even prevents you from operating as usual. For example, you might be forced to halt operations if your business building is flooded or if a fire ruined your stock. In which case, your business interruption insurance would pay out to cover the loss and additional expenses you may need to keep your business running.

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MoneySuperMarket are partnered with Simply Business to offer you business insurance policies. Simply Business are one the the UK's largest business insurance brokers, authorised and regulated by Financial Conduct Authority. They specialise in protection policies for small and new businesses and work with an extensive panel of providers to help small business owners find tailored policies for good value.

For more information, visit the Simply Business website