Business insurance

Business insurance protects businesses against losses that happen as a result of normal business activities – particularly when a compensation claim is made. There are different types of cover for different types of risk, from legal liability, to property damage, to employee-related issues. Typical cover includes public liability, professional indemnity and employers’ liability insurance.

For more information check out our business insurance FAQ pages.

Here at Simply Business, nearly one million customers trust us with their business insurance. Our expert team is on hand to help you find the right level of cover to protect your business. We allow you to compare quotes from a range of leading insurers and choose the best policy for your needs. Get started today and get your tailored business insurance quote in minutes. 

While business insurance isn’t a legal requirement, some regulators may require you to have it in order to operate. The only type of business insurance that’s mandatory under the law is employers’ liability insurance – it’s likely that if you have staff, you need this cover.

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Most businesses with employees need to have at least £5 million of employers’ liability insurance. It also depends on the nature of your work, and whether clients, contracts or regulatory bodies specify a particular level of cover. Think about how much you might need to pay out in claims if something goes wrong.

Simply Business offers between £1 million to £5 million of public liability insurance, £50,000 to £5 million of professional indemnity insurance, and £10 million as standard of employers’ liability insurance.

Compare business insurance quotes today to get the right level of cover for your business.

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There’s no difference between small business insurance and commercial insurance – they’re simply interchangeable names for the same thing. 

For example, small business insurance or commercial insurance can protect your business in the event of a legal dispute or an injury to one of your employees.

Yes, you can buy business insurance before registering your business, and even before you’ve started trading. Keep in mind that when buying a commercial insurance policy, insurers will ask for details like your business address, your trade type, and your actual or projected turnover.

Registering your business

When you’re starting your business you can set up as a sole trader or start a limited company. As a sole trader, the only business registration you generally need to complete is a registration for the HMRC self-assessment tax system. You can do this on the .gov website.

If you set up a limited company, there’s a bit more paperwork involved. You need to register your business with Companies House (this is sometimes called ‘incorporating’) and you’ll then be given a company registration number (CRN). Some businesses can complete the registration process online).

Buying your business insurance

Although it’s really important to register your business and tick all the legal boxes when you’re getting started, you don’t need to register your business before you can buy your business insurance.

When you’re buying your policy, insurers need to know things like your business address, your trade type, and your actual or projected turnover. You may also be asked about your business structure (whether you’re a sole trader or a limited company, for example). However, you won’t be asked for your CRN or other business registration details.

This means that you can buy your business insurance while you’re doing all the other paperwork to set up your business.

Yes, as you can buy business insurance before you begin trading. But some types of business will need a trade licence to operate – and if you need a licence and start trading without it, your business insurance policy may be invalid. Trade licences are usually issued by the relevant licensing authority or by the local authority.

Trade licences

Not every business needs a trade licence. There are certain business types, however, that require licences, and these are usually issued by the relevant licensing authority or by the local authority. Businesses that need trade licences include market traders, taxi drivers, and pet shops. You can use the licence finder tool on the government’s website to check whether your business needs a licence.

Remember that even if you don’t need a trade licence, you do need to register your business. If you’re a sole trader, you need to register for self-assessment tax, and if you’re setting up as a limited company you need to ‘incorporate’, which means registering with Companies House and getting a company registration number (CRN).

Buying your business insurance

It’s possible to buy your business insurance before your trade licence has been issued. Your insurer won’t ask for your licence details when you buy your insurance, and you can get your insurance in place before you begin trading.

However, part of your agreement with your insurer is that you’ll comply with all laws and regulations, so if you start trading without a necessary licence, your business insurance may be rendered invalid. This could mean that any claim you make is refused by your insurer. Therefore it’s important to get all your paperwork in order, and get your trade licence sorted before you begin trading.

An excess is an amount you pay towards any claim you make on your business insurance. For example, if your excess is £250 and you make a claim worth £1000, your payout will be a maximum of £750.

The cost of your business insurance is tailored to your business. It’s based on a number of factors, such as:

• your claims history, particularly the past five years
• how long you’ve been operating in your trade
• working in dangerous environments
• working with dangerous materials
• the value of goods, equipment, or tools you insure
• the number of covers you add (the more covers, the greater the price)

Most business insurance policies will cover you for theft. However, the level of cover and what it protects will depend on your policy. 

For example, if you want to protect your tools or the equipment you use to run your business, you’ll need to add tools insurance or business equipment insurance to your policy.

At the same time, public liability insurance can cover you for the theft of someone else’s property that you’re responsible for, while stock insurance can cover the cost of replacing your stock if it’s stolen.

Yes. It’s important to make sure you have the right type and level of insurance for the different types of work you do. For example, if you’re a builder, you may also do roofing work on certain jobs – you’ll need additional cover for this, but you can have it all on the one policy.

When looking for best-rated business insurance quotes, you’ll have the option to add another trade or profession to your policy. If you need to add a third trade, give us a call on 0333 043 8527 and one of our insurance experts will help you set up your policy in minutes.

This will depend on whether you have employers’ liability insurance in place. Public liability insurance is designed to protect your business against the consequences of legal action brought by members of the public for injuries or damage to their belongings. But when it comes to your employees causing injury or damage, this protection only activates if you also have employers’ liability insurance.

If you employ people, you’re required by law to have employers’ liability insurance.

There’s one exception here. Family businesses that aren’t incorporated as a limited company are not legally required to have employers’ liability insurance. The government defines a “family business” as one where all your employees are closely related to you (as a spouse, civil partner, sibling, child, parent, grandparent, grandchild, step-parent, stepchild or half-sibling). So if you run an unincorporated family business and you choose not to get employers’ liability insurance, it’s important to know that your public liability insurance wouldn’t cover you against damage or injury caused by your team.

Make sure you’re covered for the services you provide:

• Beauty therapist insurance
• Market traders insurance
• Personal trainer insurance
• Plumbers liability insurance
• More insurance by industry

Other types of business insurance

We offer several different types of business insurance, with some of the most common types of insurance listed below:

• Public liability insurance
• Professional indemnity insurance
• Employers’ liability insurance
• Commercial insurance
• Product liability insurance
• Tool insurance
• Stock insurance
• Personal accident insurance
• Office insurance
• Business contents insurance
• Online retailer insurance
• More business insurance covers

Landlord covers

• Landlord insurance
• Commercial landlord insurance

If you’re self-employed and hire staff you’ll be required by law to have employers’ liability insurance. There aren’t any other types of insurance that are legal requirements for self-employed businesses. However, it’s important that you have the right cover in place so you’re protected if something goes wrong or a claim is made against your business. 

Alongside employers’ liability insurance if you have staff, you’ll probably want to take out public or product liability cover and professional indemnity cover. Depending on your business, there are a range of other covers you can add into your business insurance policy including tools insurance, legal expenses insurance, and stock insurance. You can find out more on our self-employed insurance page.

If your online business hires staff then you’ll need employers’ liability insurance as a legal requirement. You’re not legally required to have any other insurance for your online business, but it’s crucial that you’re covered in case something goes wrong. 

As well as employers’ liability insurance (for business with staff), online businesses usually include cover for things like public and product liability, professional indemnity, legal expenses, and stock in their insurance policy. 

Visit our online business insurance page to find out more about the types of cover that could help to protect your business.

If you work from home regularly, it’s not a requirement to have business insurance. However, it’s worth checking your home insurance policy and in some cases making your insurer aware of your situation.

If you run your business from home and you employ staff, you’ll need employers’ liability insurance as a legal requirement. You’re not required to have any other types of cover if you run a home business, but there are several risks it’s important to protect yourself against.

For example, if your home business handles client data you may need to take out professional indemnity insurance. Meanwhile if you store stock or business equipment at home, you may need insurance to cover you for theft or damage. If your customers or clients visit your home, then public liability insurance can cover you if someone is injured or their property is damaged because of your business.

Although standard home insurance can cover you if you work from home regularly, if you’re running your business from home it’s likely you’ll need commercial property insurance.