Public liability
✔ Harm to third parties
✔ Harm to third party property
✔ Legal fees
What is home business insurance?
Home business insurance is a specialised type of policy for business owners, freelancers and sole traders who work out of their home.
You can buy different types:
Professional indemnity insurance - covers costs if clients are harmed
Public liability insurance - covers costs if members of the public are harmed
Business contents insurance - covers costs if equipment is damaged or stolen
Do I need it?
🚩 Employers liability insurance is a legal requirement if you have staff
You are not legally required to have any other types of business insurance. But it financially protect you if something goes wrong at work.
Without insurance you could end up paying some very high costs if your stock is stolen, an employee is hurt on your premises, or a mistake on your part causes a client to sue.
Do remote workers need home business insurance?
Standard home insurance is unlikely to cover the loss or damage of work equipment such as company laptops or client data.
However, if you work for someone else, it will generally be your employer's responsibility to have suitable insurance in place to cover employees who work from home.
What does home business insurance cover?
These are the main types of home business cover. Different policies have different inclusions and exclusions.
-
-
Professional indemnity
✔ Harm to clients
✔ Professional mistakes
✔ Legal fees
-
Business buildings
✔ Damage to building structures
✔ Fire damage
✔ Water damage
-
Business contents
✔ Damage and theft
✔ Business equipment
✔ Stock
What extra home business insurance options can I add to my policy?
-
Employers' liability
Employers’ liability insurance protects you if your staff become ill or injured at work.
-
Tools insurance
Tool insurance covers costs if your tools are stolen, damaged, or lost.
-
Business interruption
Business interruption insurance protects against disruption from events like fires.
-
Legal expenses
Legal expenses insurance covers legal fees and offers legal and tax support services.
-
Income protection
Income protection insurance protects you if you become unable to work.
-
Key person
Key person insurance offers compensation if a key employee becomes unable to work.
How much does home 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.
FAQs
Do I need insurance after I close my business?
Yes, you might need insurance even after closing your business to protect against any claims that might arise later. This is known as "run off cover".
This is especially important if you retire, as it prevents claims from affecting your retirement fund.
Does running a business from home affect home insurance?
Yes, running a business from home can affect your standard home insurance.
You may need to inform your insurer of your business activities, and they may respond by increasing your premiums or requiring you to take out additional cover.
Even if this is not the case, home insurance policies typically do not cover business use, so if you want to protect your equipment from theft and damage, or yourself from expensive client compensation claims, you should look into business insurance.
Do you need business insurance if you are self-employed?
It is not legally required for self-employed individuals to have business insurance unless they have staff. Some professional bodies will insist you have insurance before you can become a member.
Insurance can protect self-employed workers from costly issues. Clients and customers can bring expensive compensation claims against you if they believe you have caused them physical or financial harm. This could be because:
They tripped over something in your home and hurt themselves
A product you sold them hurt them or made them sick
You made a mistake or gave bad advice that then cost them money to fix
Do I need to change my insurance if I run a business from home?
It depends on your business' size and scope. For example, if you are using your home as a guest house, standard home insurance won't cover you.
If your work is more small-scale, your existing home insurance may continue to protect your personal property and the building, but is unlikely to pay out for anything that has a business use, such as your tools or items you were planning to sell.
If you've started a home-based business, you should contact your home insurance provider to check what you will and won't be covered for.
What is the best insurance for a home-based business?
It depends on what you do for work:
If clients or customers come into your home, you need public liability insurance
If you provide professional advice and work with client's intellectual property, you need professional indemnity insurance
If you have expensive tools, you need tool insurance
If you have expensive equipment, you need business contents insurance
If you sell physical items you need product liability insurance
🚩 If you employ any non-family members, you must have employers liability insurance. Without it you can be fined £2,500 for every day you were not insured.
Does my regular home insurance cover work from home?
Standard home insurance can offer some protection, but in general home insurers will not cover business use.
Policies vary. Contact your insurer to find out what you personally are covered for.
-
Usually covered by home insurance
Personal possessions
Clerical work (using a computer, taking phone calls)
Building structures
-
Usually not covered by home insurance
Business equipment and specialist tools
Stock
Damaged caused by people you voluntarily let into your home
Harm caused to clients and their property
Outbuildings used for business e.g. sheds
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.
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
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, 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 £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.