Business insurance: the basics
Get the right insurance for your business needs
New businesses are likely to require a number of different types of insurance. Some are compulsory:
- employers' liability compulsory insurance
- motor insurance if your business uses vehicles on the road or other public places
- professional indemnity insurance for businesses in professions such as law and accountancy
Other types of insurance your business may require include:
- buildings and contents insurance
- equipment insurance
- key person insurance and health insurance for the owner-manager
- business continuity or business interruption insurance
- public liability insurance
- product liability insurance
- goods in transit insurance
- legal expenses insurance
- money policies
You can read about business insurance at the Association of British Insurers (ABI) website - Opens in a new window.You can also use our interactive tool to work out which forms of insurance you should have for your business.
It's important to monitor your level of insurance cover as your business develops. Schedule an annual review at which you can consider how your needs have changed. Weigh up the cost of the premiums against the level of risk you're running.
Using brokers
An independent insurance broker who is familiar with your business sector can help you select the right level of cover for your needs, assess which risks pose the greatest threat and find the best deal.
You can find an insurance broker on the British Insurance Brokers' Association (BIBA) website - Opens in a new window, or you can search for an insurance broker on the Institute of Insurance Brokers (IIB) website - Opens in a new window.
Some brokers charge a fee for their services but most obtain a payment from the insurance company they recommend to you. If you purchase products or services from insurance intermediaries, you have the right to ask the intermediary how much commission they receive for selling the product or service to you.
See our guide on how to choose an insurance adviser and present your risk.
Although in some cases you may be able to buy cover directly from insurance companies, it's generally best to use a broker, as they can provide you with advice and help you assess your insurance needs. If you do choose to deal directly with an insurer, it's worthwhile checking that they are a member of the ABI. Check that an insurer is a member of the ABI at the ABI website - Opens in a new window.
Subjects covered in this guide
- Introduction
- Get the right insurance for your business needs
- Insurance you must have by law
- Insure against common business risks
- Liability and professional indemnity cover
- Protect your people with insurance
- Insurance for businesses set up from home
- Reduce your risks and premiums
BIBA Consumer Helpline
0870 950 1790
Actions
- Use our interactive tool to work out which forms of insurance you should have for your business
- Business insurance guidance on the ABI website - Opens in a new window
- Insurance broker listings on the BIBA website - Opens in a new window
- Insurance broker listings on the IIB website - Opens in a new window
- Insurer member details on the ABI website - Opens in a new window
- Manage your personal list of starting-up tasks with our Business start-up organiser
