Business insurance (also known as ‘commercial insurance’ or ‘company insurance’) provides protection against financial losses incurred as a result of something going awry while carrying out business activities.
There’s a range of business insurance policies to choose from which each cover different eventualities, including theft, property damage and accidents in the workplace. It’s also possible to find business insurers that offer common types of cover as a bundle.
As with personal insurance policies, you’ll need to meet regular payments, known as premiums, in order to remain covered. However, you can tailor the level of cover to meet the needs of your company and compare business insurance quotes from different insurers to keep costs to a minimum.
Business insurance (also known as ‘commercial insurance’ or ‘company insurance’) provides protection against financial losses incurred as a result of something going awry while carrying out business activities.
There’s a range of business insurance policies to choose from which each cover different eventualities, including theft, property damage and accidents in the workplace. It’s also possible to find business insurers that offer common types of cover as a bundle.
As with personal insurance policies, you’ll need to meet regular payments, known as premiums, in order to remain covered. However, you can tailor the level of cover to meet the needs of your company and compare business insurance quotes from different insurers to keep costs to a minimum.
Business insurance (also known as ‘commercial insurance’ or ‘company insurance’) provides protection against financial losses incurred as a result of something going awry while carrying out business activities.
There’s a range of business insurance policies to choose from which each cover different eventualities, including theft, property damage and accidents in the workplace. It’s also possible to find business insurers that offer common types of cover as a bundle.
As with personal insurance policies, you’ll need to meet regular payments, known as premiums, in order to remain covered. However, you can tailor the level of cover to meet the needs of your company and compare business insurance quotes from different insurers to keep costs to a minimum.
Last updated: 01/07/2025
Features:
• Trusted by over 800,000 customers, across 1,500 trades to provide insurance
• Their award-winning claims team make the claims process simple and hassle-free, with 80% of settled claims paid within 24 hours.
• Feefo rating of 4.7/5 based on almost 40,000 reviews
• They understand every business is unique and provide specialist insurance tailored to your needs
• Get started now and receive a quote from leading insurers in minutes, as well as your policy documents the same day
Features:
Features:
• Trusted by over 800,000 customers, across 1,500 trades to provide insurance
• Their award-winning claims team make the claims process simple and hassle-free, with 80% of settled claims paid within 24 hours.
• Feefo rating of 4.7/5 based on almost 40,000 reviews
• They understand every business is unique and provide specialist insurance tailored to your needs
• Get started now and receive a quote from leading insurers in minutes, as well as your policy documents the same day
Features:
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DisclaimerThe list of business insurance providers on this page is a selection of services available and gives you an idea of the kind of options available. You can find out more about the individual products by visiting any of the providers listed. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. moneyfactscompare.co.uk will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, moneyfactscompare.co.uk recommends you obtain independent financial advice.
There are many different types of business insurance policies to consider. Some are legal requirements, while others may be a necessity depending on the nature of your business and the industry in which it operates:
Public liability insurance protects your business against claims for compensation and the associated legal costs if found to have caused injury to a third-party (such as a contractor, customer, member of the public etc.) or damage to their property. While not a legal requirement, it’s often recommended if your business comes into regular contact with the general public.
Employers’ liability insurance, meanwhile, provides cover against claims for compensation made by employees should they suffer a work-related illness or injury, as well as any associated legal costs. From the day you become an employer, you’re legally required to take out cover for at least £5 million from an authorised insurer or risk being fined.
Professional indemnity insurance is designed to protect your business in the event a client suffers financial loss or damage due to negligence. Although not a legal requirement, it is mandatory for businesses operating under certain industry regulatory bodies (such as the Financial Conduct Authority) and could also be a lifeline for any company offering any form of advice or professional service.
Also known as ‘keyman insurance’ or ‘keyperson protection’, this type of insurance policy offers a financial buffer if a vital employee were to pass away or become unable to work due to a critical or terminal illness. While this could be the CEO or a company director, any employee who’s integral to the day-to-day running of your business is eligible. Find out more about keyperson insurance.
Broadly speaking, buy-to-let insurance is a type of building and contents cover that financially protects landlords from damage to their property, including that caused by theft, vandalism and adverse weather. Most policies can be tailored to offer additional protection, such as rent guarantee cover, legal protection, public liability insurance and landlord emergency cover.
Any vehicle on the road must be insured by law – including those used for business purposes. Business car insurance offers specialist cover that, unlike most personal car insurance policies, will usually pay out if your vehicle is stolen or damaged while undertaking work-related activities. It comes in different varieties; commercial vehicle insurance may be necessary if driving is central to your business (e.g. taxi drivers and driving instructors), while van drivers have access to business van insurance policies.
Business contents insurance (also known as commercial contents or business asset insurance) provides financial compensation if your company’s belongings (equipment, fixtures, fittings etc.) were to be damaged, lost or stolen. While most standard policies protect assets held on site, it’s possible to get cover for other locations or when in transit. Some insurers also offer additional protection for your stock, known as stock insurance.
Should your company be left temporarily unable to trade due to unforeseen circumstances (such as a flood, fire or theft), business interruption insurance can offer financial support throughout the recovery process. Not only does this include replacing lost revenue, but payouts can also be used to cover staff salaries and/or the cost of temporarily relocating.
Business legal protection insurance (also as commercial legal protection insurance and business legal expense insurance) can help to cover the cost of any legal action taken by or against your company. It may particularly appeal to small businesses that lack in-house legal expertise.
Credit risk insurance (also known as trade credit risk insurance) provides protection against losses incurred as a result of customers being unable to pay for goods or services (i.e. bad debt). What’s more, some insurers offer additional resources such as customer credit checks and monitoring.
In an increasingly digital world, cyber liability insurance (or simply ‘cyber insurance’) could be critical for protecting your business against financial losses arising from cyber-attacks and data breaches. Typically, cyber liability policies cover any costs associated with loss of customer data, as well as the interruption caused to the day-to-day running of your business.
Product liability insurance could help cover claims for compensation, as well as any other associated legal fees, should a product you produce, sell, repair or supply be faulty and cause injury to a person or damage to property. This extends to food and baked goods, as well as wares sold in a store.
By law, all businesses must have employer’s liability insurance from an authorised insurer covering at least £5 million from the moment they take on an employee, or risk being fined £2,500 a day they aren’t adequately covered.
You’re also legally required to take out business car or van insurance for any vehicle used to carry out activities on behalf of your business (beyond commuting), as a standard car insurance policy won’t be sufficient in most cases.
Any other cover will depend on your attitude towards risk, the work your business undertakes and the industry in which it operates. For instance, financial advisers are required by industry regulatory body, the Financial Conduct Authority (FCA), to hold professional indemnity insurance.
Meanwhile, it may be wise to consider public liability insurance if your business frequently deals with members of the public, and cyber liability insurance given the increased prevalence of digital attacks.
In addition to those required by law, small businesses (SMEs) can benefit from many of the same types of insurance policies as held by larger companies. However, be sure to tailor the level of cover to the unique needs of your growing business.
There’s no one-size-fits-all when it comes to small business insurance which means the price will vary depending on factors such as the size of your business, the level of cover needed and whether you have any previous claims.
Business insurance premiums can start from as little as £5 for just employer’s liability insurance and can stretch into hundreds and thousands of pounds for more comprehensive cover.
A standard home insurance policy typically provides enough cover if you’re an employee with a desk job who simply works from home (although be sure to check with your current insurance provider). If you run a business from your home, however, you may need more specialist insurance. For example:
It’s important to remember you’re legally required to hold employer’s liability insurance if your home-based business takes on employees. In some cases, providers offer bespoke home business insurance packages that contain the most common types of policies and can be tailored to the specific needs of your business.
Alternatively, speak with a commercial insurance broker for help identifying the cover best suited to your business.
As previously mentioned, there are some types of insurance policies, such as employer’s liability insurance, that are a legal requirement from the moment a business takes on an employee. In other cases, it’s at the discretion of the business owner as to if and when they take out insurance.
That being said, the more you delay getting cover, the longer your business is at risk of suffering a financial loss due to unforeseen circumstances.
When it comes to finding cheap business insurance policies, it’s good practice to compare quotes from a number of different providers.
But, while it may be tempting to opt for that with the lowest premium, it’s important to consider all features of a policy and make sure it provides enough cover for your business. Failing to adequately insure your business could prove costly in the long run.
Business insurance is a broad term encompassing many different types of policies that can protect your company from financial losses as a result of something unexpected happening. This includes employer’s liability insurance, public liability insurance, professional indemnity insurance and more.
Some providers offer packaged business insurance policies that contain some of the most popular policies. Speak to an insurer for specific information.
Yes – at the very least, all businesses are legally obligated to have employer’s liability insurance from the moment they become an employer. Failure to have sufficient cover in place could result in a £2,500 fine for every day the business isn’t properly insured.
Likewise, it’s a legal requirement that all vehicles on the road are insured – including those used to carry out business activities. In most cases, you’ll need specialist business car or van insurance (rather than standard car insurance) to cover a company vehicle.
While not a legal requirement, other types of business insurance, such as public liability and professional indemnity insurance, are often recommended. Depending on your business and the industry in which it operates, you may find additional insurance policies are also necessary.
Businesses are legally required to have employer’s liability cover for at least £5 million from the moment they hire an employee. Failure to comply could result in a £2,500 fine for every day your business isn’t adequately insured.
Meanwhile, you’ll also need specialist business car or van insurance for company vehicles.
The amount of cover your business needs depends on the type of work it conducts, the industry it operates within and the type of insurance policy you’re looking at. Legally, you’ll need employer’s liability cover for at least £5 million, and public liability insurance can equally run into the millions of pounds.
When settling on cover, it’s important you don’t underinsure your business, as claims can escalate quickly. Value your assets accurately and consider seeking help from a business insurance broker if uncertain.
Business car insurance is typically more expensive than personal policies but the amount you’ll pay varies depending on the level of cover you opt for and your claims history. Comparing quotes from different business car insurance providers could help to find the most cost-effective policy for your needs.
Although it’s possible to run a business without insurance, you’re at risk of suffering a significant financial loss if something unexpected were to happen.
That being said, it’s mandatory to have employer’s liability insurance if you take on employees, and business car or van insurance if you use a vehicle to carry out work on behalf of the company.
Yes – in most cases, business insurance is tax-deductible as it’s considered an ‘allowable expense’ (i.e. an essential cost to running a business).
In many cases, it’s possible to make changes to your business insurance policy at a later date. However, be sure to check with your specific provider and bear in mind administration fees may apply.
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