What is business insurance?

Business insurance is essential if you run your own company, and you could be breaking the law without it. Here is how business insurance works.

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How does it work?

It can pay out if you suffer a financial loss while carrying out your business activities, including cover for:

    It reduces uncertainty, because your business can still operate if something goes wrong.

    You can get basic policies designed for self-employed tradesmen or professionals, or more comprehensive cover for larger companies and franchises.

    Think about what your business needs and try to find a package policy that can cover everything. You can find a policy by:

      Here is how to find the right policy for your business

      What types are there?

      The different types of insurance that protect your liability as a business include:

        The types of insurance that protect your commercial premises and its contents include:

          You can get package policies that let you combine different types of business insurance, and you can cover more than one business on a policy.

          Here is how to decide which type of business insurance you need

          Do you need it?

          By law, you have to have certain types of business insurance. For example, if you employ paid or voluntary staff you need to have employers' liability insurance.

          There are also some jobs where it is compulsory for you to have professional indemnity insurance, like financial advisers and insurance brokers.

          Other types of business insurance are optional, but you should look into property cover if you have a mortgage or long term lease on a commercial premises.

          How much does it cost?

          The price you pay for business insurance depends on:

            Once you have decided what cover your business needs, shop around and compare quotes to find the most competitive policy.

            How to make a claim

            If you need to claim on your business insurance, contact your insurer immediately and give them as much detail as possible.

            Most business insurers run a 24-hour claims helpline, but they may want to visit you before they settle your claim, to discuss things in more detail.

            Here is how to make a claim on your business insurance