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Business insurance helps to protect businesses from potential losses due to unforeseen circumstances. This could be property damage, operational hazards, business interruption or employee sickness. All of these situations could mean businesses face some financial stress.
Insurance helps to minimise these risks and gives you peace of mind that if something goes wrong. For example, covering the cost of legal fees or compensation claims. But, it’s important to have a tailored policy in place so that the business is covered in the right areas.
Finding the right business insurance can feel like an overwhelming task, but we’re here to help.
Whether you are a sole trader, start-up or longstanding business, we’ll have a suitable quote that’ll mean your business is safeguarded from unexpected events.
We understand the emotional toll that potential risk and uncertainties can bring to business owners, and our mission is to alleviate that worry.
This is why we work with our partner, Simply Business, to provide tailored business insurance quotes. This means you can focus on what matters - growing your business.
This protects your business against claims from employees. It’s a legal requirement for most businesses with employees, and being found without it carries a hefty fine. It's designed to help you cover compensation payouts, legal fees and medical expenses your business is found liable for. This could be for things like injuries your employees suffer or damage done to their property while at work.
This protects your business against claims made by members of the public. This could be for injuries they suffer, illnesses they contract or damage done to their property by your business. It isn’t a legal requirement, but it can help you financially in certain situations. For example, covering the cost of compensation, or legal fees and medical expenses you’re ordered to pay if your business is sued. And as these can soon add up, it can be worthwhile to have in place.
This protects your business against claims of negligence or misconduct made by clients. This could be for things like poor advice you give that causes them financial harm, or work you do that they claim isn’t as promised. They could even claim for reputational harm your work has caused them. It’s not a legal requirement, but some regulators and trade bodies can insist you have it in place in order to trade.
This protects your business if you work independently. It's a mix of business insurance policies that protects you against potential risks such as liability claims, business interruptions and health issues. You can often tailor the cover to include the policies you might need for your line of work. That includes public liability, employers' liability, professional indemnity, income protection and cyber insurance.
When you get a quote, we’ll ask you if you want to add extras onto your cover.
These include:
Tool insurance: Helps replace your equipment if it’s lost, stolen or damaged through fire or flood.
Business equipment insurance: Covers your shop, office or mobile equipment against loss, theft and damage.
Personal accident insurance: Pays out if you or someone you’ve covered is hurt or killed at work, helping to support them or their family if they’re unable to work. To add these to your cover, simply select them when getting a quote
The only type of business insurance you legally have to have is employers’ liability insurance. And, you only need this if your business actually has employees.
But even though you don’t strictly need it, there are a number of good reasons to take out a business insurance policy:
It can help if you’re sued: If a customer, employee or client claims against your business, you could end up owing huge sums of money. The main point of business insurance is to help you cover any legal fees or compensation you’re ordered to pay.
Your regulator or trade body might insist on it: You may have to have certain types of cover in place in order to trade. This is the case for solicitors, lawyers and some tradespeople, all of whom are required by their regulator to have insurance as a condition of membership.
Contracts might ask for it: Some clients, especially councils and other official bodies, might need you to have insurance in place before they can work with you. Even private clients might want to make sure you’re covered before they hire you.
It gives you peace of mind: Knowing you’re covered if your business is sued can take some of the stress out of running a business, allowing you to focus on the important things like making it as successful as possible.
It’s worth looking into. Businesses with one or more employees only legally need to have employers' liability insurance. But, there are huge benefits for having an insurance policy that covers all areas of your business.
The first point to consider is it gives your customers and employees reassurance, and builds trust that your business is prepared for any unexpected events.
Some clients might also not be able to work with your business unless you have insurance. So, the decision could limit or grow your potential client portfolio.
Plus, remember your business insurance policy can be completely tailored to your business. This means you don’t need to pay for extras if it’s not relevant for your business.
It’s important to consider all your options before making a final decision. That way, you’ll make sure you’re getting the right cover for your business.
Hairdressers, plumbers, window cleaners: they all come into contact with the public. And if your business causes them harm you could be left with a hefty legal bill. For example, reactions to hair dye, or injuries suffered by left-out tools. These are just an example of the type of problems that can leave your business vulnerable to a claim. Having insurance in place can help ensure you can cover the costs if those claims are successful.
Whether you own a corner shop, bakery, tech shop or something else entirely, customers will be on your premises. You might have employees working for you, too. If any of them slips on a wet floor, trips over a loose wire or is hit by falling stock, your business could be sued. This could leave you with a hefty legal bill, medical expenses and compensation to pay. But the right insurance can help you cover it.
Accidents happen, especially if you work with tools. Passersby tripping over loose debris, or an employee injuring themselves on the job could leave your business liable for damages. The right insurance can help make sure that accidents aren’t the end of your business. Some policies can even help you cover the cost of your tools and other equipment if they’re stolen, damaged or lost.
Are you a software engineer? A marketing consultant? Or maybe even an investment advisor? If your business does financial harm to a client, you could be held liable for damages. Whether you accidentally give bad advice, produce work your client is unhappy with, or lose a sensitive document, your business could be sued. Having the right insurance in place can help safeguard it.
The cost of business insurance depends on a few different factors. For example, the type, size and location of your business can impact the final cost. Plus, the amount of cover your business requires can be a key factor.
So it’s important to get a personalised quote for your business’ needs, as this makes sure it covers everything you require.
Simply Business is a leading UK business insurance provider.
Since 2005, Simply Business has helped millions of small businesses find the best coverage at the best rates.
And just like all our partners, Simply Business is fully authorised and regulated by the Financial Conduct Authority. This means you can be confident in their honesty, transparency, and trustworthiness.
Get a quote today and see how much you could save with Simply Business.
If you work from home, business insurance could help you by:
Protecting you against negligence claims: If you do online work, and make an error in that work that causes your client financial harm, you could be sued. Professional indemnity insurance could help you cover the cost of any claims made against you.
Protecting you against injury claims: If you create products, and those products hurt a client, you could be held liable. Product liability insurance, which is usually included with public liability insurance, can help cover the cost of any claims made against you for personal injury or property damage.
Protecting you against employee claims: Even if your employees work from home, repetitive strain injuries can happen. If they’re found to be a result of the equipment you supplied your employees with, you could be held responsible. Having cover in place can help you cover the cost of such claims.
Yes, even if you’ve just set up your business and are yet to register it, you can still take out business insurance. All we’ll need is the address of your business, how many employees you have and your projected turnover.
Employers’ liability insurance is mandatory as soon as you become an employer. But other types of business insurance like professional indemnity insurance and business property insurance are not legally required.
Yes, business insurance is generally tax deductible as it’s considered an allowable expense. This is because it helps to run your business effectively.
If you need to make a claim on your business insurance, then your insurers should be able to help. Get in touch as soon as possible with specific details about the claim, and they’ll take you through the process.
Page last reviewed: 11/09/2024
Reviewed by: Alex Ryde
Confused.com Business Insurance is provided by Simply Business. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London EC2V 7NG. Our service is free and compares a range of trusted household names. Confused.com is an intermediary and receives commission from Xbridge Limited which is based on a percentage of the total annual premium if you decide to buy through our website. We pride ourselves on impartiality and independence – therefore we don't promote any one insurance provider over another.
