Getting the right insurance policy for your small business will depend on:

  • The type of business you run

  • The size of your business

  • Whether you have any employees

  • The cover you need for your business premises

This comparison includes package business policies, which offer several types of insurance in one policy. Think about what your business needs, and then get as many online quotes as possible to find the best policy.

What cover do you need?

The main types of insurance your business may need include:

  • Public liability: This covers you for third party injury, illness and death, and property damage caused by your work. For example, a customer slips over and is injured at your business premises.

  • Product liability: This covers you if products you sell injure your customers, or make them ill. For example, if you sell food and a customer gets food poisoning.

  • Employers' liability: This is a legal requirement if you employ paid or voluntary staff. It covers claims for injury, illness or death of your employees at work.

  • Professional indemnity: This covers claims made against you by clients who have lost money because of work you did for them. For example, if you give incorrect advice or make a mistake in a document.

  • Buildings and contents: This provides cover for your business premises, and its contents. This could include stock, equipment, tools and machinery.

If you are unsure what cover your business needs, speak to a broker who can advise you what type of cover is best.

How to keep costs down

Compare policies online to get the right cover at the cheapest price. This helps you haggle with insurers, as they may be willing to beat the prices of their competitors.

You can also choose a higher voluntary excess, which could save you money on your insurance premium. But make sure you can afford to pay your excess if you make a claim.

If you can afford to pay in full, this could save you money because most insurers charge interest on monthly direct debits.

Small business insurance FAQs

Q

Do I legally have to insure my business?

A

You need to get business insurance if you employ staff, or if you use commercial vehicles. Here is more on what business insurance you need.

Q

Where can I get insurance for my small business?

A

You can use this comparison to save money by buying cover online. But if you are unsure what cover you need, contact a broker who can give you advice.

Q

Do I need insurance if I work from home?

A

Yes, home insurance does not protect anything used for business. You may also need public liability cover if you visit clients, or have them visit you.

Q

Can I cover loss of income?

A

Yes, if you add business interruption to your policy. This protects lost income if you cannot trade because your premises has been damaged, e.g. by fire.

Q

What cover limits do I need?

A

It depends on the type of business you run, if you have employees, and what business contents you own. Speak to a broker if you are unsure.

Q

Does it cost to make a claim?

A

Yes, you have to pay an excess to your insurer when you claim. You will pay a different excess for each type of cover, so check your policy documents.