Business Insurance

Employers' liability insurance is compulsory if you employ anyone, and your business could face a fine of £2,500 for every day you aren't properly insured.

The Employers' Liability (Compulsory Insurance) Act 1969 was put in place to make sure businesses take out at least the minimum level of protection of £5m from an authorised insurer to help them pay any compensation costs if an employee is injured or becomes sick because of work.

Unlike employer's liability insurance, public liability insurance isn't a legal requirement. That said, it's an important cover for any business that interacts with the public - as circumstances in which you may end up needing it are fairly common.

Professional indemnity insurance is not usually compulsory by law. However, it's mandatory for members of certain professional bodies, and required by regulators in some industries, making it effectively compulsory for solicitors, financial advisors, accountants, architects and certain healthcare professionals, among others.

Some business customers may want you to have professional indemnity insurance in place before they'll work with you.

If you're self-employed and don't employ anyone, you won't need employers' liability insurance. If you do have employees - whether they're permanent, temporary or contractors - you need employers' liability insurance.

If you offer advice or professional specialist services as a self-employed person, you'll most likely need professional indemnity insurance. And if there's a risk of someone being injured or their property getting damaged because of your work, you'll need to consider public liability insurance.

As a self-employed business person you should be able to claim for all your business insurance as an expense.

The cost of business insurance depends on your business activities; manual labour and dangerous work will cost more to insure than insurance for offices.You can also choose to add extra cover such as legal expenses, business and office equipment, and personal accident.

Comparing business insurance quotes can help you get a better idea of how much business insurance will cost for you 
and your company.

Even predominantly online businesses can benefit from business insurance policies. You'll need employers' liability insurance 
as usual if you have employees, but you could otherwise benefit from policies which insure your stock and your premises, and which cover any legal fees that may arise. Simply Business offers online retailer insurance that's specifically tailored 
towards e-commerce firms.

Certain businesses require trade licenses, including market traders, taxi drivers and pet shops. If your business requires a license, you can buy business insurance without it. Your insurer may not pay out, however, if you start trading and have to make an insurance claim before your trade license is in place.

Not every business needs to be registered - especially if you set up as a sole trader. If you start a limited company, however, paperwork is involved and you will need to register (or 'incorporate') with Companies House.

You can indeed buy business insurance before registering your business, and before you've started trading. You won't usually be asked for any business registration details when you buy your business insurance.

You do have to notify insurers of County Court Judgements or Individual Voluntary Arrangements on your record. Many insurers may well decline your application at this point, but luckily there are certain insurers who specialise in covering people with this sort of thing on their record. Your policy may be more expensive, however.

There are many types of theft that can befall to a business, and they are often quite different. There's no one business insurance policy you can buy that covers all kinds of theft, but you will more than likely be able to buy a policy relevant to your business that covers the types of theft that are mostly likely to affect you.

Product liability insurance provides an additional layer of protection as part of the public liability cover. It covers claims against your business for an injury or illness caused by your products; whether your company designed, manufactured or sold the product, you’re protected against any costs. This can be particularly useful for retail or technology businesses.