“Insurance isn’t there to make you money. It’s there to stop one incident destroying the business you’ve worked hard to build.”
Quote by Nigel Holland BA (Hons) FCA
Business Insurance
Running a business always involves risk. The right insurance won’t stop problems happening, but it can stop a bad day turning into a serious financial setback.
Whether you’re a sole trader, partnership, or limited company, business insurance helps protect your income, your reputation, your staff, your premises, and your legal position.
Why business insurance matters
If something goes wrong, the costs can add up quickly:
Compensation and legal fees after a claim
Replacing damaged stock, tools, or equipment
Loss of income following a fire, flood, or theft
Professional claims for errors, omissions, or negligent advice
Employer-related claims if you have staff
Cyber incidents, data loss, and ransomware disruption
For many businesses, one uninsured incident can wipe out months (or years) of profit.
Core types of business insurance (UK)
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Public Liability Insurance
Protects you if a member of the public is injured or their property is damaged because of your business activities. Common for trades, retail, hospitality, mobile services, and anyone working at client premises. -
Employers’ Liability Insurance
A legal requirement in most cases if you employ staff (including some casual and part-time arrangements). Covers claims from employees who are injured or become ill due to work. -
Professional Indemnity Insurance
Essential for advisers, consultants, designers, IT providers, and anyone providing professional services or advice. Covers claims for negligence, errors, omissions, or breach of professional duty. -
Product Liability Insurance
If you sell, supply, manufacture, or import products, this covers claims arising from injury or damage caused by those products. -
Business Contents and Equipment Cover
Protects tools, laptops, machinery, office contents, and other equipment. Particularly important for trades and businesses with high-value kit. -
Commercial Property Insurance
If you own or lease premises, you may need cover for the building, fixtures, and fittings. Landlords may also require specific cover under the lease. -
Business Interruption Insurance
Helps replace lost income and ongoing costs if you can’t trade due to an insured event (such as fire or flood). This is often what keeps cashflow stable during disruption. -
Cyber Insurance
Helps with response costs, data recovery, business interruption from cyber incidents, and potential liabilities relating to data breaches. Increasingly relevant for any business holding customer data.
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What level of cover do you need?
The “right” policy depends on what you do and how you operate. Insurers typically look at:
Your trade or profession and risk profile
Turnover and number of staff
Where you work (home, office, client sites, public-facing premises)
Contract requirements (many clients insist on specific cover limits)
Value of tools, equipment, stock, and premises
Data you hold and reliance on IT systems
Your subcontractor arrangements (and whether they have their own cover)
You want cover that’s adequate, but not wasteful. Underinsuring can lead to claim reductions; overinsuring simply drains profit.
Common pitfalls to avoid
Assuming a home insurance policy covers business activity
Not checking policy exclusions (especially for high-risk work or unusual activities)
Forgetting to update turnover, staff numbers, or equipment values
Having professional indemnity that doesn’t match contract requirements
Relying on subcontractors’ cover without verifying it
Not including business interruption (often missed, often critical)
Practical checklist before you buy or renew
Confirm what you must have (employers’ liability, landlord/lease requirements, client contracts)
List your main risks: public injury, advice/service risk, premises risk, IT risk, product risk
Total up your equipment/tools/stock replacement values
Confirm your turnover and number of employees
Decide sensible cover limits (your insurer/broker can guide, but base it on real exposure)
Keep the policy schedule and certificates accessible (some clients will ask)
How we can help
We can help you identify the likely insurance areas you should consider based on how your business actually operates, and we can highlight common gaps we see when reviewing businesses.
Insurance is only one part of risk management, but it’s a key part of protecting profits and keeping the business resilient.
