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Protects against injury to third parties or damage to their property

Public liability insurance covers you against claims for loss, damage or injury from members of the public, customers or clients. It can cover legal costs and compensation. It’s a legal requirement if you run a horse-riding business.

Protects you if someone sues you for negligent work

Professional indemnity insurance covers claims against you for losses caused by poor advice, loss of intellectual property or libel. Surveyors, journalists and solicitors are among those who should consider this cover; alongside other startups.

Protects you in case of work-related employee injury or illness claims

Employers' liability insurance is a legal requirement if you employ at least one member of staff. It protects you against claims made by employees who suffer injury, illness or loss because of their work.Ìý

Employers’ liability insurance typically covers employee compensation and legal costs.

Read more:

• Differences between public liability and professional indemnity insurance

• Differences between public and employers’ liability insurance

Protects you if your product injures someone

Product liability insurance covers you if a product you design, make or supply causes injury to a customer or their property. For instance, a cake you bake causes food poisoning, or you supply electronics that later malfunction and explode.

A product liability policy covers the cost of compensating the customer for any injuries, property damage or unforeseen circumstances they suffer.

Protects you in case of property damage

Business buildings insurance covers you against fire, flood or other damage to your business premises.

If you work from home, check your home insurance covers you. You may need to increase your cover if not.Ìý

If you’re a landlord, you need business buildings insurance if you rent out commercial property (such as shops and offices). If you rent out residential properties, you need landlord insurance.Ìý

Covers belongings loss or damage

Business contents insurance covers the cost of replacing your business premises’s contents, including stock damaged or destroyed by fire or flood, or stolen items.Ìý

You may already have a contents policy if you run your business from home, but it’s unlikely to cover items that relate specifically to your business. That said, you may be able to add extra cover instead of buying a completely new policy. Speak to your insurer to see what it offers, and always compare its price against other policies on the market.

Protects you if you can’t trade

If you can’t trade due to an unexpected event, such as fire damage, business interruption insurance provides cover so you don’t lose out financially.

Goods in transit insurance protects you against claims arising from loss, damage or theft of client or customer property during transport.Ìý

Protects you in case of a data breach or cyberattack

Firms that conduct business online or keep employees and client details digitally should consider cyber insurance to protect against data breaches, cyberattacks or online fraud.

Compensation if you lose valuable employees

Key person insurance protects you if essential personnel are too ill to work or die. It compensates you for that loss.

Covers individuals in case of serious injury

Certain small businesses, such as scaffolders and fishermen, work in potentially dangerous environments. This insurance can cover medical costs and loss of income if they suffer serious injury.

Protects your company vehicles

If you own a van for your business, you must have third-party insurance in case you’re in an accident. This is the minimum level of cover you can have, but you can upgrade your protection if you wish. Read more about van insurance.

Business insurance protects your company from financial losses if something goes wrong. It’s an umbrella term for different types of cover that can protect your business from various risks.

The price you pay for business insurance depends on several factors, such as the type of industry you’re in and the size of your business. The type and level of cover you choose also affect premiums.Ìý

Read more: How much does business insurance cost?

If you’re a sole trader, you only have to take out business insurance if you employ staff or own a company vehicle. In these instances, you need employers’ liability insurance and motor insurance.Ìý

However, certain other types of business insurance could also prove useful. For example, it could be worth having public liability insurance in case your work causes injury to members of the public or you damage their property. You might also want to take out professional indemnity insurance – you may even need it for your profession.

That depends on the type of business you run. Employers’ liability insurance is a legal requirement if you employ any staff. You also need motor insurance if you have a company vehicle.Ìý

You might also want to consider professional indemnity insurance if you advise clients, and public liability insurance if customers or clients visit your property.

Find out more about working-from-home insurance.