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Find the right cover for your trade at the right price. Compare quotes from leading UK business insurance providers and get expert guidance every step of the way.
Business Insurance
Do I legally need business insurance?
Employers' liability insurance is a legal requirement if you have employees. Other types, like public liability and professional indemnity, are not legally compulsory but are often required by contracts, clients, or trade bodies. Trading without the right cover can leave you personally liable for claims that could cost thousands.
What type of cover suits my business?
It depends on your trade, how you work, and who you work with. A sole trader working from home has different needs from a shop owner or a contractor on building sites. Most businesses need a combination of policies. The right mix protects you against the specific risks your business faces day to day.
How much does business insurance cost?
Premiums vary widely depending on your trade, turnover, number of employees, and level of cover. A self-employed consultant might pay £100 to £300 a year for professional indemnity. A tradesman with public liability and tools cover could pay £200 to £600. Comparing multiple quotes is the best way to find competitive pricing.
What does public liability insurance cover?
Public liability covers your legal costs and compensation if a member of the public is injured or their property is damaged because of your business. It is one of the most common types of business insurance and is often required by clients before you can start work on their premises.
Do I need employers' liability insurance?
If you employ anyone, including part-time staff, temps, or apprentices, you are legally required to have employers' liability insurance with a minimum of £5 million cover. The Health and Safety Executive can fine businesses up to £2,500 per day for trading without it.
Is cyber insurance worth it for small businesses?
Yes, particularly as more businesses store customer data and take payments online. The average cost of a cyber breach for a UK small business is over £8,000. Cyber insurance covers data recovery, legal fees, notification costs, and business interruption following an attack or data breach.
Finding the right business insurance starts with understanding your risks and comparing options from across the market. Here is how it works with Money Saving Advisors.
Comparing directly with a single insurer means you only see their products and their prices. Searching across multiple providers gives you a clearer picture of what is available and helps you avoid paying more than you need to for the cover your business requires.
The right insurance depends on your business type, how you work, and the risks you face. Here are the most common situations and which cover tends to matter most.
If you work for yourself, you probably do not have employer-provided cover or sick pay to fall back on. Insurance for the self-employed typically starts with public liability and professional indemnity, depending on your trade. If you work from client premises, most clients will require proof of insurance before you can start.
Contractor insurance often needs to include professional indemnity insurance, particularly if your contracts require it or you work inside IR35. Public liability is also standard for contractors who visit client sites. If you use your own tools or equipment, consider adding tools cover to your policy.
Once you take on staff, employers' liability insurance becomes a legal requirement. Small business insurance usually combines employers' liability, public liability, and contents cover as a minimum. As your business grows, you may also need business interruption and cyber insurance to protect against larger risks.
Builders, plumbers, electricians, and other tradespeople face physical risks on every job. Tradesman insurance typically includes public liability with a higher limit (£1 million to £5 million), tools cover, and employers' liability if you have employees or use subcontractors on site.
Shop insurance covers the specific risks of running a retail premises: stock damage, theft, customer injuries on your property, and business interruption if you need to close temporarily. Most policies bundle buildings, contents, and public liability together into a single package.
If your business relies on a van or fleet, you need commercial van insurance alongside your standard business cover. This covers the vehicle, goods in transit, and any tools or equipment you carry. Standard personal van insurance will not cover commercial use.
Not sure where to start? Comparing quotes based on your specific trade is the fastest way to see which combination of cover suits your business.
There are several types of business insurance available in the UK, each designed to protect against different risks. Most businesses need a combination of policies rather than a single one. Here is how the main types compare.
| Type | What it covers | Who needs it | Typical annual cost |
|---|---|---|---|
| Public liability | Injury or property damage to third parties caused by your business | Any business that interacts with the public or works on client sites | £40–£400 |
| Professional indemnity | Claims of negligence, errors, or bad advice in your professional work | Consultants, IT professionals, accountants, architects, and other advice-based businesses | £100–£500 |
| Employers' liability | Employee injury or illness caused by their work | Any business with employees (legal requirement, minimum £5m cover) | £50–£300 |
| Cyber insurance | Data breaches, cyber attacks, ransomware, and associated recovery costs | Any business that stores customer data or relies on digital systems | £150–£600 |
| Buildings and contents | Damage to your premises, stock, equipment, and fixtures | Businesses that own or lease commercial property | £100–£1,000+ |
Public liability is the most widely held business insurance in the UK and is often the first policy businesses take out. It protects you if a customer, supplier, or member of the public is injured or their property is damaged because of your work.
Professional indemnity covers the financial cost of mistakes in your professional advice or services. Many trade bodies and client contracts require it, and some professions cannot practise without it.
Employers' liability is the only type of business insurance that is a legal requirement. If you have even one employee, you must hold at least £5 million of employers' liability cover. The Health and Safety Executive enforces this, and fines for non-compliance can reach £2,500 per day.
Cyber insurance has become increasingly important as businesses move online. The average cost of a data breach for a UK small business now exceeds £8,000, and attacks on businesses of all sizes are rising year on year.
Buildings and contents insurance protects your physical assets. If you own your premises, this covers structural damage. If you lease, your landlord's insurance typically covers the building itself, but you need contents cover for your stock, equipment, and fit-out.
Many insurers offer combined business insurance packages that bundle several of these covers together at a lower cost than buying each policy separately.
Business insurance costs vary significantly depending on your trade, business size, number of employees, and the types of cover you need. Here are typical annual cost ranges for the most common policy types in 2026.
| Policy type | Sole trader or freelancer | Small business (1–10 staff) | Medium business (10–50 staff) |
|---|---|---|---|
| Public liability (£1m) | £40–£150 | £100–£300 | £200–£600 |
| Professional indemnity (£100k) | £100–£250 | £200–£500 | £400–£1,200 |
| Employers' liability (£10m) | N/A | £50–£200 | £150–£500 |
| Cyber insurance | £80–£200 | £150–£400 | £300–£800 |
| Buildings and contents | £100–£300 | £200–£600 | £400–£2,000+ |
| Combined package | £150–£400 | £300–£800 | £600–£2,500+ |
Typical annual premiums based on UK market data, July 2026. Actual quotes vary by trade, location, claims history, and level of cover.
The most effective way to reduce costs is to compare quotes from multiple providers. Prices for the same level of cover can vary by 30% or more between insurers, so a quick comparison could save you hundreds of pounds a year.
The most common mistake I see is businesses buying the cheapest policy without checking what is actually covered. A public liability policy that looks like a bargain can fall apart when a claim is rejected because the exclusions rule out most of the work you actually do. Read the policy schedule, check the exclusions list, and make sure the cover matches the work you carry out day to day. Saving a few pounds on the premium is not worth it if the policy does not pay out when you need it.
Reducing your business insurance costs does not mean accepting less protection. These steps can help you get a better deal without leaving your business exposed.
The simplest step is comparing quotes from multiple providers. Even if your current insurer offers a competitive price, you will not know that without checking what the rest of the market is charging.
Business insurance protects your company against financial losses from events you cannot predict or prevent. Here is how the process works from start to finish.
You start by telling an insurer or broker about your business: your trade, turnover, number of employees, and the types of work you carry out. Based on this information, they calculate your risk profile and offer a premium. You choose the cover you need, pay the premium (annually or monthly), and your policy starts.
While your policy is active, your insurer covers you against the specific risks listed in your policy document. If something happens that is covered, for example a customer is injured on your premises, an employee falls ill due to their work, or a cyber attack compromises your data, you can make a claim.
Contact your insurer as soon as possible after an incident. You will need to provide details of what happened, any supporting evidence such as photos, reports, and witness statements, and the estimated cost of the damage or loss. Your insurer will assess the claim and, if it is valid, pay out according to the terms of your policy minus any excess you have agreed to. Most straightforward claims are settled within two to four weeks.
No insurance policy covers everything. Common exclusions include deliberate acts, wear and tear, pre-existing issues you knew about before taking out the policy, and risks that fall outside the scope of your chosen cover. Exclusions vary between insurers and policy types, so always read your policy schedule and exclusions list before you buy. If something specific to your trade is not covered, ask your insurer whether it can be added as an extension.
The key principle is straightforward: you pay a regular premium, and in return, your insurer covers the financial cost of covered events that would otherwise come directly out of your own pocket or your business accounts.
FAQ
In most cases, business insurance is not a legal requirement. The one exception is employers' liability insurance, which is compulsory if you have any employees, including part-time staff, temps, or apprentices. You must hold at least £5 million of cover. Professional indemnity insurance is not legally required but is mandatory for some regulated professions and is often a contractual requirement from clients. Public liability is voluntary but widely expected.
Employers' liability insurance covers the cost of compensation and legal fees if an employee is injured or becomes ill because of their work. The Employers' Liability (Compulsory Insurance) Act 1969 requires every UK business with employees to hold a minimum of £5 million cover. The Health and Safety Executive enforces this. Businesses caught without it can be fined up to £2,500 for every day they are uninsured. Your certificate must be displayed where employees can see it.
Public liability insurance covers your legal costs and compensation if a member of the public, client, or supplier is injured or their property is damaged because of your business activities. It is not a legal requirement, but many clients, landlords, and local authorities require proof of public liability cover before they will work with you. Cover levels typically range from £1 million to £10 million, depending on your trade and the contracts you work on.
Professional indemnity insurance protects you if a client suffers a financial loss because of your professional advice, services, or designs. It covers legal defence costs and compensation. This is essential for consultants, IT professionals, accountants, architects, and anyone whose work involves giving advice or creating designs. Some trade bodies and regulators require it as a condition of membership or practising in your profession.
Standard business insurance policies typically exclude deliberate acts, criminal activity, wear and tear, pre-existing conditions you knew about before taking out cover, and fines or penalties from regulators. War, terrorism (unless specifically included), and nuclear risks are also standard exclusions. Each policy has its own exclusion list, so the specific things not covered depend on your insurer and the type of cover you hold. Always read your policy schedule carefully.
Contact your insurer as soon as an incident happens. Provide details of the event, any evidence such as photos, reports, and receipts, and an estimate of the loss or damage. Your insurer assigns a claims handler who investigates and decides whether the claim is valid under your policy terms. If approved, the insurer pays out the agreed amount minus your excess. Most straightforward claims are settled within two to four weeks. Complex claims involving legal disputes can take longer.
Yes. Working from home does not exempt you from needing business insurance. Your home contents insurance almost certainly will not cover business equipment, stock, or liability claims from clients who visit. You can get tailored policies that cover your business activities at home, including public liability and professional indemnity. If clients visit your home, public liability is particularly important in case someone is injured on your property.
You are not legally required to have business insurance as a sole trader unless you employ anyone. However, most sole traders benefit from public liability insurance, especially if you work on client premises, and professional indemnity insurance if you give advice or provide professional services. Without insurance, you are personally liable for any claims, which means your personal savings, home, and assets could be at risk.
Cyber insurance covers the costs of data breaches, cyber attacks, ransomware demands, and the associated recovery, notification, and legal expenses. Any business that stores customer data, processes payments online, or relies on digital systems should consider it. The average cost of a cyber breach for a UK small business now exceeds £8,000. Even basic cyber cover can protect you from costs that would otherwise come directly out of your business funds.
The right level depends on your trade and who you work with. £1 million is a common minimum and suits many sole traders and small businesses. Contractors working on larger commercial projects are often required to hold £2 million or £5 million. Some local authority and corporate contracts specify £10 million. Check your contracts and ask your clients what level they require before choosing a cover amount.
Yes, though your premiums will likely be higher. Insurers assess your claims history when calculating your risk. A single small claim may have little impact, while multiple or large claims can significantly increase costs or lead to exclusions for specific risks. When comparing quotes, be upfront about your claims history. Some specialist insurers focus on businesses with non-standard claims records and may offer more competitive terms.
In practice, business insurance and commercial insurance mean the same thing. Both refer to insurance policies designed to protect businesses against risks like liability claims, property damage, and employee injuries. Some providers use "commercial insurance" for larger businesses and "business insurance" for smaller ones, but there is no official distinction. The types of cover available are the same regardless of the label used.
You do not legally need insurance before registering your business, but it is strongly recommended to have cover in place before you start trading. If you carry out any work without insurance and something goes wrong, you have no protection. Many business bank accounts and commercial leases require proof of insurance before they will approve your application. Getting covered early is usually the safest approach.
Most business insurance policies allow cancellation, but the terms vary. During the first 14 days (the cooling-off period), you can cancel for a full refund minus any days of cover used. After that, you may receive a pro-rata refund for the remaining months, but many policies charge a cancellation fee of £25 to £50. If you pay monthly, you may need to pay off the remaining term. Always check your policy documents for the specific cancellation terms.
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Business Insurance
Compare business insurance quotes from leading UK providers. Find the right cover for your trade and protect your business.
Business Insurance
Compare business insurance quotes from leading UK providers. Find the right cover for your trade and protect your business.
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