Whether you are a small or large business, you may legally be required to take out:
Commercial vehicle insurance, if you use a car or van in connection with your business. You must have at least third party motor insurance, but you can include more comprehensive cover to protect against fire, damage and theft.
Clients may also ask for a copy of your public liability insurance before they do business with you. This covers third party injury and property damage caused by your work.
What other cover should you think about?
Aside from the compulsory insurance your business needs, you can also cover:
Commercial property, including building, stock and equipment
Business interruption, which pays lost income due to property damage
Goods in transit, which protects stock or equipment on the move
Professional indemnity, which protects your business if you give advice
How to save money on your insurance
Compare as many policies as possible: Get quotes from several different insurers. This lets you find the cover you need at the best price, and can help you haggle the price of your insurance.
Pick a higher voluntary excess: Your excess is what you have to pay when you make a claim. Choosing a high voluntary excess can save you money on the price of your policy, but make sure you pick an excess you can afford.
Buy your policy online: Most insurance companies offer extra discounts if you take out cover directly through their website. However, you may need to speak to them on the phone or in person if you run a large business.
Pay for your policy up front: Paying by monthly direct debit helps you split the cost of your insurance, but you could end up paying more in interest. If you pay up front in full, most insurers give you a discount.
Give accurate values to insure: Take an inventory of what you need covered, e.g. stock, equipment, or business premises. This will prevent you overestimating and overpaying for your policy, or underestimating and being unable to claim.