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 you when things go wrong with your business.
You can buy different types of business insurance, including:
Employers liability insurance - covers costs if employees are harmed
Public liability insurance - covers costs if members of the public are harmed
Professional indemnity insurance - covers costs if clients are harmed
Do I need business insurance?
🚩 Employers liability insurance is a legal requirement in the UK if you employ any staff, including unpaid ones.
No other type of business insurance is required by law. However, some clients, suppliers and professional bodies will only work with you if you have professional indemnity insurance or public liability cover.
Insurance also protects your business from having to absorb large and unexpected costs.
Which insurance does my trade or profession need?
Sole traders, partnerships and small, limited companies can benefit from business insurance as much as large corporations.
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
If you are a UK business and you have any non-family members working for you (including volunteers) then by law you must have employers' liability insurance. Without it, you can be fined up to £2,500 for every day you're not insured
Employers liability insurance covers the compensation costs if a worker becomes ill or injured because of their work for you. This include ex-employees.
For example, if a worker was exposed to toxics which created health issues years later they could sue their old employer for failing to put adequate health and safety measures in place.
Members of the public are harmed
Public liability insurance covers the cost when members of the public ("third parties") are injured, or their property is damaged, because of your business activities.
For example, you could be held responsible if a passer-by trips over your equipment and requires medical treatment, or if you accidentally cause damage to a customer's furniture while doing a job in their home.
Your equipment is stolen or damaged
Business contents insurance can help you recover the cost of losing company equipment to fire, flood, theft and other disasters. Tool cover can offer similar protection for tools.
The risk of some types of equipment losses is growing. London saw tool theft from vans increase by 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 your business makes a mistake that costs your clients money.
This could be because you made incorrect calculations which results the client buying unusable supplies. It could be because you fall victim to a phishing scam and the data breach exposes your client's confidential information.
Your business can't operate
Business interruption insurance covers revenue losses and expenses during operational pauses that are caused by unforeseeable events.
£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
Businesses often have a particularly important person or people without whom the business could not operate as usual. But anybody can be suddenly injured, or unexpectedly become ill.
Key person insurance protects you from the financial fallout of this scenario. It provides compensation to your company so that while your key person is out you can cover your losses and pay for replacement resource.
Average claim value
£3,377^
Number of claims
4,135^
Claims acceptance rate
88%^
Did you know?
£68 million in insurance claims ^
That's how much was paid out in 2024. Without business insurance, those customers would have faced paying that bill themselves.
How does business insurance work?
Business insurance transfers risk from you to your insurer. If something goes wrong, they pay to fix it.
What can I claim for on my business insurance?
It depends on the type of cover you have. Business insurance can protect you against things like:
Compensation claims if someone is injured or their property is damaged because of your work
The cost of replacing stolen or damaged tools, equipment, or stock
Loss of income if you can’t operate due to an insured event, like a fire or flood
Legal fees if you face a claim or dispute
Always check your policy wording to see exactly what you’re covered for.
What are the limits and exclusions of business insurance?
Every policy has a limit, which is the maximum amount your insurer will pay for a claim. There are also exclusions, which are events or circumstances the policy won’t cover. Common exclusions include:
Wear and tear or gradual damage
Deliberate acts or negligence
Claims related to incidents that happened outside the area or time period your policy covers
Your documents will list all limits and exclusions, so it’s worth reviewing them carefully.
When would business insurers reject a claim?
A claim might be turned down if:
The incident isn’t covered by your policy
You’ve given inaccurate or incomplete information when buying cover
You’ve missed premium payments or failed to meet policy conditions (e.g., storing equipment securely)
The claim is fraudulent or exaggerated
Providing honest details upfront and following your insurer’s requirements helps avoid rejected claims.
How are business insurance premiums calculated?
Insurers set premiums based on the level of risk your business presents. They’ll consider factors like:
The type of work you do and its associated risks
The size of your business and number of employees
The value of your tools, equipment, or stock
Your previous claims history
The level of cover and optional extras you choose
Higher-risk businesses, or those with a history of claims, are likely to pay more for insurance.
What are the main types of business insurance?
-
-
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
-
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 have different inclusions and exclusions. Always check your own documents.
-
Can be covered
Harm, illness and injury caused to third parties, clients or employees and for which your business is considered responsible
Property damage caused to third parties and for which your business is considered responsible
Compensation payouts to clients, customers, employees and members of the public, if a court finds you responsible
Legal expenses if a claim is made against you, you’ll be covered for the cost of any legal proceedings
Tools and equipment if they are lost, damaged or stolen
Fires, floods and other natural disasters you can be covered for any resulting damage and for any delays to your operations
Burglary and robbery including the cost of lost items and any associated damage like broken locks
Business interruption if the consequence of an insurable event is that you lose work or can't operate for a period of time
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Not usually covered
Intentional harm or damage (some policies will cover malicious damage by an employee)
Poor workmanship
Wear and tear i.e. the normal deterioration of tools and equipment over time
Drugs or alcohol if you or your employees were under the influence when the event you're claiming for occurred
Breach of contract
Improper use of business vehicles e.g. it's not being used for the correct business purposes or the person driving was not named on the policy
Damage to property being worked on
Theft without force e.g. you left your store unlocked
Business insurance for small businesses, trades and professions
Different jobs come with different risks. Tailored business insurance makes sure you’re covered for the incidents most likely to happen in your trade.
For example, a plumber might need a good liability policy to protect client's property from unintentional water damage. An accountant's biggest business risk could be offering poor advice that causes a client to sue - something indemnity insurance would protect against.
Construction and trades
Builders: protection for scaffolding damaging property, on-site injuries, and more.
Carpenters: protection for accidents with sharp tools, damaging a client's furniture, and more.
Construction workers: protection for heavy machinery accidents, site damage, and more.
Contractors: protection for mistakes on-site, damage to client property, and more.
Electricians: protection for electrical burns, unhappy clients, and more.
Painters and decorators: protection for paint spills, property damage, and more.
Plasterers: protection for accidental spills, damage to walls or ceilings, and more.
Plumbers: protection for cracked pipes, leaks damaging client homes, and more.
Roofers: protection for falls, damage from loose tiles, and more.
Tradesmen: protection for employee accidents, messing up a client's home, and more.
Personal and domestic services
Caterers: protection for food poisoning claims, equipment damage, and more.
Cleaners: protection when cleaning people's offices and homes.
Craft insurance: protection for accidents while making or selling items, faulty products, and more.
Dog walkers: protection for pet injuries, property damage, and more.
Gardeners: protection for damaged plants, broken tools causing harm, and more.
Hairdressers: protection for allergic reactions to products, slips in the salon, and more.
Makeup artists: protection for allergic reactions to treatments, accidental injuries, and more.
Personal trainers: protection for client injuries during sessions, damaged equipment, and more.
Photographers: protection for damaged equipment, missed event claims, and more.
Pub and bar owners: protection if something goes wrong for public house or bar owners.
Window cleaners: protection for ladder accidents, broken windows, and more.
Professional services
Accountant insurance- Protection for errors in financial advice, client losses, and more.
Business insurance for bigger businesses
The bigger your business, the more insurance protection you will usually need.
You are likely to need higher cover limits on your policies, and you may benefit from adding extra cover to your business insurance plan, such as:
Cyber insurance = in case you are the victim of a cyber attack or ransom demand
Key person insurance = in case a senior employee is unexpectedly unable to work
Business interruption insurance = in case external events stop business operations
What is considered a large business?
250+ employees
SMEs are divided up into:
Small business = less than 50 employees
Medium business = 50 to 249 employees
How likely is it that my insurance claim will be accepted?
Almost 9 in 10
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 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
Number of employees
Your industry
Your location
Your security measures
Your claims history
Insurance type
Insurance excess
How can I get cheaper business insurance?
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Pay a higher excess
Raising your contribution to any claim usually lowers your premiums.
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Lower your risk
Examples include installing security cameras, adding layers of security and training your staff.
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Bundle policies
Taking out different policies with the same insurer is often rewarded with discounts.
How do I make a business insurance claim?
To claim on your business insurance, follow these three steps:
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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.
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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.
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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.
Compare business insurance quotes from leading UK insurers
What do I need to get a business insurance quote?
Business details: what your business does, how old it is, whether you're a sole trader, limited company or partnership etc.
Personal details: Your name, date of birth etc.
Employee details: Number of workers, if they're permanent or temporary etc.
Policy requirements: Policy type, cover level, any optional extras etc.
Specific details about insured items: Value of equipment etc.
Legal history: Past or ongoing insurance claims, legal disputes etc.
💡 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.
Ready to compare quotes? Here is what to do next
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Tell us about your business
Let us know about your business, its structure and expected turnover, and what type of business insurance you are interested in.
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We explore the market
We will talk with you to learn more about your individual business and then explore the market for appropriate policies and prices.
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Find the right cover for you
We will show you the options and prices and, when you’re happy, we can put cover in place for your business protection.
Our expert says…
Having the right business insurance can help protect you and your company against unexpected costs.
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.
The average policy will set you back £80.76
^ . This pales in comparison to the costs you might have to pay if something goes wrong and you don’t have cover in place. Taking out a policy is often the best thing you can do for you, your employees and your customers. And we can help you find the right policy – at the cheapest price – so you can focus on running the day-to-day management of your company.
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?
If you have employees working for you, then you will need employers' liability insurance.
No other type of insurance is required by law, but having some in place can save online retailers a lot of money if something goes wrong. In particular, you might want to consider:
Business contents insurance: this covers any any equipment you use for work
Stock insurance: this protect any items you sell while they're being stored on your premises
Product liability insurance: this covers you if an item you sell causes harm to a customer
Do sole traders need business insurance?
As a sole trader you’re only legally required to take out one type of insurance: employers' liability insurance if you have employees or volunteers.
But other types of cover might be a good idea considering sole traders are responsible for all business costs. Without insurance, if something goes wrong on the job you’ll be financially responsible.
Public liability insurance can protect you from expensive legal fees and compensation costs if a member of the public says they or their property have been harmed by 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 will cover your company for loss of income or gross profit if an unexpected event prevents you from operating as usual.
For example, if you were forced to halt operations because your building site was flooded, your insurance would pay out to cover any financial loss and additional expenses needed to keep your business running.
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 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 5 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
88% of business insurance claims made by MoneySuperMarket customers were accepted in the 12 months before March 2025. Data from SimplyBusiness.
Average claims value for MoneySuperMarket customers who claimed on their business insurance in the last 12 months. Data provided by SimplyBusiness.
Number of business insurance claims by MoneySuperMarket customers in the last 12 months. Data provided by SimplyBusiness.
Percentage of business insurance claims made by MoneySuperMarket customers in the last 12 months that were accepted. Data provided by SimplyBusiness.
Simply Business data 2024