Business Insurance

It is an umbrella term for the policies that protect a company against financial loss. Typical lines include employers liability, public liability, professional indemnity, product liability, commercial property (buildings and contents), business interruption, cyber, directors and officers, key person and shareholder or partnership protection. Most firms buy a combined commercial package rather than separate policies.

Yes. If you employ anyone in the UK, even one part-time worker or apprentice, the Employers Liability (Compulsory Insurance) Act 1969 requires a minimum of £5m of cover. Most insurers default to £10m. Failing to hold cover or display the certificate can attract a fine of up to £2,500 for each day you are uninsured.

Public liability covers claims from members of the public for injury or property damage caused by your business activities. It is not a legal requirement, but most contracts, landlords and trade bodies insist on at least £1m to £5m of cover. Builders, tradespeople, retailers and any business that meets the public should treat it as essential.

Anyone who gives advice, designs, or provides a professional service for a fee. That includes accountants, solicitors, consultants, IT contractors, architects, surveyors, marketing agencies and financial advisers. It covers the cost of defending claims of negligence, breach of duty or bad advice, plus any damages awarded. Many regulators (SRA, ICAEW, RIBA, FCA) set minimum limits.

Public liability deals with harm caused by your activities or premises. Product liability covers harm caused by a product you have made, sold or supplied, even after it has left your hands. Manufacturers, importers, wholesalers and retailers all need it. The two are often bundled together as combined liability.

Buildings insurance covers the structure of premises you own, including fixtures, fittings, walls, roof and outbuildings. Contents covers everything inside that is not part of the building: stock, machinery, computers, tools and furniture. Tenants usually only need contents and tenants improvements cover; freehold owners need both.

It pays your lost gross profit and ongoing fixed costs (wages, rent, loan repayments) when an insured event such as a fire, flood or major theft stops you trading. The indemnity period (12, 24 or 36 months) should reflect how long it would realistically take to get back to full revenue, not just to reopen the doors.

It covers first-party costs such as forensic investigation, data restoration, ransom payments, notifying affected customers and credit monitoring, PR and lost income from downtime, plus third-party costs like regulatory fines where insurable and defence and damages if customer data is breached. Cover for social engineering fraud, where staff are tricked into transferring money, is usually a separate add-on.

D and O insurance protects the personal assets of directors, officers and senior managers against claims arising from decisions made in their management role. That includes claims from shareholders, employees, regulators, creditors and HMRC. It is particularly important for limited companies, charities and any business that takes external investment.

It is a life and critical illness policy owned by the business on the life of a key employee or director whose loss would seriously damage profits. The business pays the premiums and receives the lump sum, which can cover lost revenue, recruitment, training and loan repayments. Premiums are usually a tax-deductible business expense if the policy meets HMRC’s Anderson rules.

Each owner takes out a life and critical illness policy, written in trust alongside a cross-option agreement. If an owner dies or is diagnosed with a serious illness, the policy pays a lump sum to the surviving owners so they can buy the deceased’s share at a pre-agreed value. The deceased’s family gets cash instead of a share in a business they may not want to run.

If your business owns or operates more than one vehicle (typically two or more), fleet insurance is usually cheaper and easier to administer than individual policies. It covers named or any-driver use and can mix cars, vans, HGVs and specialist vehicles on a single renewal date. Cover can be third party only, third party fire and theft, or comprehensive.

If you own a commercial property and let it to a business tenant, property owners liability covers your legal liability as the building owner for injury or damage to third parties. It is separate from the tenant’s public liability and from the buildings insurance, although all three are often bundled into a single commercial landlord policy.

Premiums are driven by your turnover, wage roll, number of employees, trade or SIC code, claims history, location (flood and crime risk), security at the premises, the limits and excesses you choose, and whether you do any high-risk activities such as work at height, hot works or overseas travel. A broker can often improve terms by presenting the risk properly to the right insurer.

Direct insurers work well for very simple, standard risks. A broker becomes more valuable as your business grows, takes on staff, holds stock, signs contracts with liability clauses, or operates in a specialist sector. Brokers compare the whole market, negotiate wordings, and stand on your side at claim time. Most charge no fee beyond what the insurer pays them.

Most UK policies cover occasional business trips to the EU as standard, but ongoing work, permanent staff or installations abroad usually need a specific territorial extension or a local policy. Tell your broker about any cross-border work before you quote so the territorial limits and jurisdiction wording match what you actually do.