Public liability
Consider if: You work with or near members of the public or their property
Key cover:
✔ Harm to third parties
✔ Harm to third party property
✔ Legal fees
Business insurance
Business insurance from only £5.41^
a month
What is business insurance?
Business insurance financially protects your business when things go wrong, helping cover the cost of accidents, damage, mistakes, and unexpected interruptions.
You can buy different types of business insurance, including:
Employers liability insurance: covers costs if employees are injured or become ill because of their work
Public liability insurance: covers costs if a member of the public is injured or their property is damaged
Professional indemnity insurance: covers costs if your advice, work, or services cause a client financial loss
Other common types of cover include:
Business contents insurance: protects equipment, furniture, and stock
Buildings insurance: covers damage to the premises you own
Tools and equipment insurance: protects portable items you rely on to work
Business interruption insurance: helps replace lost income if you can’t operate due to an insured event (like a fire or flood)
Together, these policies provide a specific level of protection to help keep your business going if unexpected problems occur.
Do I need business insurance?
In the UK, the only type of business insurance you’re legally required to have is employers’ liability insurance, and that’s only if you employ anyone, including part-time, temporary or unpaid staff. This cover is designed to protect you if an employee is injured or becomes ill because of their work.
Although other types of insurance aren’t required by law, many clients, suppliers or professional bodies may insist on certain policies before they’ll work with you.
Public liability or professional indemnity insurance are common requirements, especially if you work with the public or provide professional advice.
Additional cover, such as contents, tools, buildings or business interruption insurance, are also recommended. They’re not mandatory, but they can protect your business from significant and unexpected costs, helping you recover more easily when things go wrong.
Why should I insure my business?
Without insurance your business must pay all the costs itself when something goes wrong. These costs can be very high and cause major disruption to your work.
With business insurance, your insurer takes on the financial risk instead.
Your employees are harmed
Employers' liability insurance is required by law for UK businesses hiring employees and covers compensation if an employee or ex-employee is injured or becomes ill due to their work.
For example, a worker develops long-term health issues after exposure to toxic materials and brings a claim years later. Fines can reach £2,500 for every day you're not insured
Members of the public are harmed
Public liability insurance covers legal and compensation costs for third-party injury or property damage.
For example, a passer-by trips over your equipment and needs medical treatment, or you accidentally damage client's furniture while working in their home.
Your equipment is stolen or damaged
Business contents insurance and tool cover helps you recover the cost of replacing essential equipment lost to fire, theft, flood or other disasters.
Tools stolen from a van is a growing issue, with London thefts rising 60% between 2020 and 2023. Most tradespeople who had tools stolen from them said the value of the loss was between £1,000 - £5,000
You cause your client a loss
Professional indemnity insurance protects you if you make a mistake or give bad advice that causes a client financial loss.
For example, incorrect calculations lead to a client ordering unusable materials, or a phishing attack exposes their confidential data.
Your business can't operate
Business interruption insurance supports your business financially when you’re unable to trade due to an unexpected event.
£2 billion of business interruption insurance was paid out in 2020 due to the Covid-19 pandemic, according to the Association of British Insurers.
You lose a key employee
Key person insurance safeguards your business if a crucial team member becomes seriously ill or injured.
It helps cover losses, bring in temporary help, or fund recruitment if your main specialist is unable to work and halts core operations.
What are the main types of business insurance?
These core types of insurance are the main starting point for most businesses:
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Professional indemnity
Consider if: You offer professional advice or have access to client data and intellectual property.
Key cover:
✔ Harm to clients
✔ Professional mistakes
✔ Legal fees
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Employers’ liability
Consider if: You assign work to anyone who is not an immediate family member.
Key cover:
✔ Harm to employees and contractors
✔ Harm to volunteers and temporary workers
✔ Legal fees
Other types of cover for businesses
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Legal expenses
Legal expenses insurance covers legal fees and offers legal and tax support services.
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Business buildings
Commercial building insurance protects offices and workplace buildings.
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Business contents
Business contents insurance protects equipment, including in home offices.
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Tool insurance
Tool insurance protects tools from loss, damage, or theft.
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Product liability
Product liability insurance covers legal fees if your product causes injury to a customer.
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Income protection
Income protection insurance pays out for accidents, illness and unemployment.
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Business interruption
Business interruption insurance protects against disruption from events like fires.
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Commercial van
Business van insurance protects your work vehicle and its contents.
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Vehicle fleets
If you have more than two vehicles then fleet insurance will cover them under one policy.
What does business insurance typically cover and exclude?
Different policies vary in what they include or exclude, so always check your own documents carefully.
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Can be covered
Injury or illness to customers, employees, or other third parties when your business is found responsible
Damage to someone else’s property
Compensation payouts and legal defence costs following a claim
Loss, damage or theft of tools and business equipment
Damage caused by fire, flood or other insured events
Losses caused by burglary or robbery
Lost income if you can’t operate due to an insured incident (business interruption)
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Not usually covered
Intentional harm or damage (though some policies include malicious damage by employees)
Poor workmanship
Wear and tear of tools or equipment
Incidents involving drugs or alcohol
Breach of contract
Incorrect use of business vehicles (e.g., wrong licence, wrong driver, or wrong business purpose)
Damage to the item or property you’re actively working on
Theft without forced entry (e.g., leaving premises or vehicles unlocked)
How much does business insurance cost?
Cheapest Annual Price | Average Annual Price | |
|---|---|---|
Public liability | £64.94^ | £80.76^ |
Professional indemnity | £66.99^ | £94.93^ |
Employers liability | £107.56^ | £228.72^ |
The table shows the average prices paid by our customers for the most common types of business insurance.
Average price means 51% of customers paid this amount or less. Cheapest price means 10% of customers paid this price or less.
What’s the cheapest price I could pay for business insurance?
£5
.41^ per month
According to our latest data, 10% of customers paid this when taking out an annual public liability insurance policy.
How much is the average business insurance claim?
£3,377^
The cost of fixing insurable problems yourself is usually significantly more expensive than taking out insurance.
Which factors affect the price of business insurance?
Insurers set their prices based on risk. The more likely they think you are to claim, or the more expensive it would be for them if you did claim, the higher your price is likely to be.
The key factors insurers will look at are:
Your business size: bigger businesses face more exposure to risk, so premiums are usually higher
Number of employees: more staff increases the chance of accidents or claims
Your industry: some sectors are riskier than others e.g. manual or specialist work often costs more
Your location: high-crime or high-risk areas can lead to higher premiums
Your security measures: better security (locks, alarms, CCTV) can reduce risk and lower costs
Your claims history: previous claims can push prices up; a clean history helps keep them down
Insurance type: Some covers cost more by default, with public liability usually being the cheapest
Insurance excess: higher excess = lower premiums, lower excess = higher premiums
How can I get cheaper business insurance?
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Pay a higher excess
Raising the amount you agree to pay if you make a claim usually lowers your premium. For example, increasing your excess from £100 to £250 can reduce your monthly costs because the insurer takes on less risk.
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Lower your risk
Insurers price based on how likely you are to make a claim, so stronger security and safer processes can reduce premiums. Adding CCTV, secure overnight storage, or staff safety training can show insurers you’re proactively reducing risk.
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Bundle policies
Buying multiple policies from the same insurer can trigger discounts, as it’s cheaper for them to cover everything together. Combining public liability, employers’ liability and tools cover under one provider can cost less than buying each separately.
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Compare quotes
Prices change over time, and insurers compete for different types of businesses. Reviewing quotes each year helps ensure you’re not overpaying. Switching provider after comparing quotes can save money if your current insurer raises premiums.
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Update your cover
If your risks or business size decrease, you may no longer need the same level of cover and updating it can lower premiums. For example, if you reduce staff, move to a safer location, or no longer use certain equipment, adjusting your policy can bring your price down.
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Improve your claims history
Insurers use your claims history to assess future risk. Try to avoid small, frequent claims to help keep your long-term premiums down. For example, self-funding minor repairs instead of claiming can prevent future price increases.
Compare business insurance quotes from leading UK insurers
Whether you're a sole trader or a SME, let us help you compare cover from a panel of top UK insurers. We only ask for a few details to get your quotes and your information is kept secure, so you can quickly find the right cover at a competitive price.
What do I need to get a business insurance quote?
💡 Top tip: You may be asked to provide evidence, such as receipts showing how much equipment it worth. If you aren't asked this when you take out the policy, you may be asked for it when you make a claim.
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Business details
What your business does, how old it is, whether you're a sole trader, limited company or partnership, and similar details
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Personal details
Such as your name and date of birth
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Employee details
Number of workers and details like if they're permanent or temporary
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Policy requirements
Policy type, cover level, and any optional extras you need
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Specific details about insured items
Value of equipment and any relevant tools you use within your business
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Legal history
Any past or ongoing insurance claims, legal disputes, or similar issues
Our expert says…
Having the right business insurance helps protect you and your company from unexpected costs that could disrupt your work or put your business at risk.
In the UK, around 1.7 million workers suffered from work-related illness last year. 33.7 million working days were lost as a result of work-related illness and workplace injury.
Incidents like these can lead to expensive claims, legal costs, compensation payments and lost revenue.
With an average premium of £80.76
^ business insurance is typically far cheaper than paying for these costs yourself. The right policy can safeguard you, your employees and your customers, and protect your operations if something goes wrong.We can help you compare leading insurers and find the right cover at the lowest price, so you can focus on running your business with confidence.
Jake Edmonds Travel & Commercial Insurance Expert
Trusted Service Awards Winners
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Do I need business insurance for an online business?
You only legally need employers’ liability insurance if you have people working for you — this includes employees and, in some cases, contractors, temps or volunteers who are treated like employees for work purposes. If you run your online business alone with no workers, this requirement doesn’t apply.
No other insurance is required by law, but having cover can save online retailers significant costs if something goes wrong. You may want to consider:
Business contents insurance: Covers the equipment you use for work, such as laptops, printers and photography gear.
Stock insurance: Protects the items you sell while they’re stored in your home, office or warehouse.
Product liability insurance: Covers you if a product you sell causes injury or damage to a customer.
If you’d like, I can also add examples specific to e-commerce, dropshipping or marketplace sellers.
Do sole traders need business insurance?
As a sole trader, you’re personally responsible for all business debts and costs. That makes having insurance especially important.
Legally, you only need employers’ liability insurance if you have employees or volunteers. Other cover isn’t required, but it can protect you if something goes wrong.
For example, public liability insurance can cover legal fees and compensation if a member of the public is injured or their property is damaged because of your business.
Do I need business insurance if I'm self-employed?
If you have any non-family members working for you, by law you must have employers liability insurance.
Self-employed workers can also benefit from other types business insurance. It could protect your business from claims made against it, cover any legal fees and pay out compensation if any is due.
Which business insurance is compulsory in the UK?
The only compulsory business insurance in the UK is employers' liability insurance, which you will need if you have any non-family members working for you, even if they are on temporary contracts or volunteers. You can be fined £2,500 for every day you're not insured
Other types of business insurance aren't legally required. However, some clients and professional membership associations will insist you have various types of cover before they will work with you.
Do I need to be a registered business to get insurance?
No, you don't need to register your business to buy insurance. You can buy cover before you register your business or if you’re self-employed.
What does commercial property insurance cover, and is it essential for my business?
Commercial property insurance is the same as business building insurance. This type of policy will insure the property you use against structural damage. This includes damage caused by fire, vandalism, and floods.
This cover is only worthwhile if you actually own the building you use for your business. If you rent, it is typically the responsibility of the property owner to take out insurance to cover the building.
If renting, then you would only need to insure the contents. This can be covered by business contents insurance as well as stock insurance.
What is business interruption insurance, and how can it protect my company?
Business interruption insurance covers lost income and extra expenses if an unexpected event stops your business from operating.
This includes events such as fire, flood, storm damage, theft, vandalism, or equipment failure. Your policy pays for losses and extra costs during the indemnity period, which is the set time the cover applies.
For example, if a flood shuts down your site for three months, the insurance can cover lost revenue and costs to keep your business running until you’re back to normal.
Do I need to know the value of all my business assets?
Yes. Insurers need to know the value of your business assets – such as equipment, tools, stock, and furniture – to make sure you’re fully covered. If you underestimate their value, you risk being underinsured, which means a payout may not cover the full cost of replacements if something goes wrong.
Will previous claims affect my business insurance quote?
They can. Insurers use your claims history to help assess risk. If you’ve made multiple or high-value claims in the past, your premium could be higher, or some insurers may refuse cover.
What affects whether a business insurance claim is accepted?
A claim is likely to be accepted if:
The event you’re claiming for is covered under your policy
You’ve kept up to date with premium payments
You provided accurate and honest information when you took out the policy
You can supply the documents or evidence your insurer requests
If you’ve misrepresented your business, let your cover lapse, or are claiming for something that’s excluded in your policy, your claim may be rejected.
How likely is it that my insurance claim will be accepted?
Almost 9 out of 10 business insurance claims made by MoneySuperMarket customers were accepted last year.
All insurance has conditions and exceptions, so you should read your policy documents carefully to make sure you know what is and isn't covered.
When it comes to business insurance, the cheapest option may not be the best option for you. Sometimes it is worth paying a little more to get a better level of cover.
How do I make a business insurance claim?
To claim on your business insurance, follow these three steps:
Contact insurer Do this as soon as possible. You'll need your policy number, information about the problem, and proof of the ownership and value of any losses
Investigation How long the insurance investigation takes varies a lot depending on how complex the claim is. It can take from a few days to several months
Payment If your claim is accepted, your insurer will pay a settlement to you or a third party. This is usually quick, although you may have to wait a few days
How does MoneySuperMarket make money?
We get paid by the companies we work with, but the payment we get doesn’t have any bearing on the information we provide. We get paid in different ways, depending on the type of product or service you buy through us. Our goal is to search deals from as wide a range of companies as possible, but we only show results from our partner providers.
Our comparison service is, and will always be, free to use.
Why should I use a price comparison website?
One of the best ways to get the lowest prices and best deals is to compare quotes from different companies. We do the work for you, comparing quotes side-by-side and giving you all the information you need so you can choose the right deal for your needs and your wallet.
We don’t give recommendations or financial advice, but we give you clear information so you can choose financial products that suit your circumstances.
Does MoneySuperMarket work with all the providers on the market?
No, not every company can be included in our service. This is because some companies don’t want their products included on comparison sites, and some decide that they would rather not pay a fee. There are also a few smaller providers who can struggle to cope with the volume of customers that can find their products if they appear on MoneySuperMarket.
Our goal is to search deals from as wide a range of companies as possible so that you can choose the deal that suits you.
Is business insurance eligible for SuperSaveClub and rewards?
No, at this time business insurance is not an eligible product for unlocking our SuperSaveClub rewards. It is also not included in our Price Promise.
Who are Simply Business?
Simply Business is one of the largest insurance brokers in the UK. They work with leading and specialist insurers to provide cover for small business owners, landlords and self-employed workers.
MoneySuperMarket has a commercial partnership with Simply Business. They offer various business and landlord insurance policies from different insurers through our platform, allowing our customers to find affordable quotes and policies that suit your specific needs.
Reviewed on 12 Dec 2025 by
According to Simply Business data, 10% of customers paid £5.41 or less monthly for a public liability insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £2 million of public liability insurance and excludes the extra costs for paying monthly
Simply Business is one of the UK's leading providers of business insurance, serving 1 million customers across 1,500 trades.
Source: Gov.uk
Source: Tradespeople Against Tool Theft whitepaper. Accessed July 2025.
Source: Association of British Insurers
According to Simply Business data, 51% of customers paid £80.76 or less annually for a public liability insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £2 million of public liability insurance and excludes the extra costs for paying monthly
According to Simply Business data, 10% of customers paid £64.94 or less annually for a public liability insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £2 million of public liability insurance and excludes the extra costs for paying monthly
According to Simply Business data, 10% of customers paid £66.99 or less annually for a professional indemnity insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £1 million of public liability insurance and excludes the extra costs for paying monthly
According to Simply Business data, 51% of customers paid £94.93 or less annually for a professional indemnity insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £1 million of public liability insurance and excludes the extra costs for paying monthly
According to Simply Business data, 10% of customers paid £107.56 or less annually for a employers' liability insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £10 million of employers' liability insurance and up to £2 million public liability limit and excludes the extra costs for paying monthly
According to Simply Business data, 51% of customers paid £228.72 or less annually for a employers' liability insurance policy. Figure based on annual quotes purchased between 1st Aug - 31st Oct 2025. The price is for up to £10 million of employers' liability insurance and up to £2 million public liability limit and excludes the extra costs for paying monthly
Average claims value for MoneySuperMarket customers who claimed on their business insurance in the last 12 months. Data provided by SimplyBusiness.