Types of Business Insurance

Business Insurance is there to protect businesses against the everyday risks that come with running a business. Business insurance can cover you against things like professional mistakes, accidents, theft, damage and legal fees. There are many different types of business insurance, and the types you might need depend on your business and what you do. Covers include professional indemnity insurance, public liability insurance, and employers’ liability insurance. Many types are optional. Some types of cover are essential. Employers’ liability insurance, for example. is a legal requirement for any businesses with even one member of staff (and in other circumstances).

What are the main types of Business Insurance?

There are many different types of business insurance available – the right cover depends on your business and the nature of your work.

Some of the main types of business insurance are:

• Employers’ liability insurance
• Public liability insurance
• Professional indemnity insurance
• Directors’ and Officers’ insurance
• Product liability insurance
• Personal accident insurance
• Business equipment and office contents insurance
• Tools insurance
• Commercial building insurance
• Equipment breakdown insurance
• Cyber and data insurance

Employers’ Liability Insurance

In the UK, Employers’ Liability Insurance is a legal requirement for most businesses. If you employ one or more members of staff, you’re legally required to have this cover in place. You could face a fine if you fail to do so.

This insurance covers you against work-related injury or illness claims from employees. It’s also a requirement if you enlist the help of volunteers or employ people on a casual basis – even if it’s a friend helping.

Public Liability Insurance

Public Liability Insurance can protect your business against accidental injury and property damage claims from your customers, visitors or people you visit. Even if you’re not at fault, public liability insurance is there to ensure your finances aren’t impacted as a result of third-party bodily injury or third-party property damage claims – all legal and compensation fees are usually covered.

Professional Indemnity Insurance

Professional indemnity insurance is valuable cover for any business that provides a professional service, especially if this service rests on giving advice. It protects you from compensation payments and defence costs if a client thinks you’ve made a mistake or given bad advice and makes a claim against you.

Directors’ and Officers’ Insurance

Directors’ and officers’ insurance, also known as management liability insurance, protects from claims made directly against you as a Director, from a health and safety matter to a negligence claim.

Product Liability Insurance

Product Liability Insurance offers another layer of cover alongside Public Liability Insurance. It suits businesses that design, produce or supply products. In the event that the product causes injury or damage to a third party or their property, you could be held liable. If this were to happen, you might face compensation costs and legal fees associated with a claim.

Personal Accident Insurance 

Personal accident cover may help to protect your business financially if you or a member of your team suffers an accidental injury leaving them unable to work.

Business Equipment and Office Contents Insurance

This cover is useful as it protects all the important instruments you require for the operation of your business.

Office insurance safeguards the assets you use and keep on site – such as computers, desks and photocopiers. If something happened to your equipment, it could be difficult for you to continue business as usual.

Tools Insurance

Tools insurance covers industry specific tools for those tradespeople that rely on their tools day in and day out for getting the job done.

Whether you’re an electrician, handyman, or carpenter, tools insurance will protect you from the cost of tool loss or damage – making sure you get replacements or repairs for your tools fast, so you can continue with the job in hand.

Commercial Building Insurance

If you own the building you operate your business from, you should buy commercial property insurance. With this cover is in place, you’ll have the benefit of knowing you’re protected if the property becomes damaged – in the event of a flood or fire, for example.

It’s important to note that this type of business insurance only protects the building. The contents, such as any office equipment you might have, will need to be covered by office contents insurance.

Equipment Breakdown Insurance

Equipment insurance covering the breakdown of your business appliances is for protecting your company against unforeseen expenses.

Of course, you’ll have bought the best equipment possible to ensure the smooth running of your business, but you can’t predict when things might go wrong. Equipment breakdown insurance can protect your business against sudden and unexpected mechanical or electrical failure.

Cyber and Data Insurance

As businesses become more and more reliant on computer systems, cyber insurance has emerged as an increasingly essential business insurance policy to have.

Cyber and data insurance protects businesses against increasingly complex risks online. These cyber threats have become more prevalent meaning protecting your data and your business has never been more important. A cyber insurance policy could cover you for the time and money it takes to fix a data breach or hack.