Guide

Get the right business insurance

Last updated: 27 April 2017

Insuring your business and its assets

Insurance protects your business against the damage or loss of physical assets.

The cost of insurance depends on:

  • the insurer's assessment of the likelihood of damage
  • the size of payment your insurer may have to make for a claim

Liability and professional indemnity cover

This protects against your legal liability for any damage or harm caused to customers or the public by:

  • your business
  • your products or services

Your business should consider their exposure to these risks carefully.

Awards for damages can be high and could put smaller companies out of business.

Buildings and contents insurance

You should make sure you're covered for damage to your business premises.

Most standard contracts will insure your premises, fixtures and fittings against:

  • disasters, such as fire and flood
  • theft

Buildings insurance only covers the physical building.

You'll also need separate insurance cover for stock, machinery and other building contents.

Contents

You have the choice of either:

  • 'replacement as new' insurance
  • indemnity insurance

Many business owners choose indemnity cover. This deducts the cost of any wear and tear when settling a claim.

Contents are also covered against theft, but only if there has been forcible and violent entry or exit from your premises.

You can also choose a business interruption policy. This insures against:

  • loss of profit
  • higher overheads – for example if machinery gets damaged

Motor insurance

If you, your employees or anyone else working for your business uses a vehicle for work then you should make sure that:

  • all vehicles owned by your business are covered by insurance
  • any employees' vehicles used for business have their insurance extended – covering use for their employer's business
  • any personal vehicle insurance you have also covers business use

Business insurance if you work from home

If you work from home, you may need a specialist insurance policy.

Household insurance won't cover any loss of office equipment. It also doesn't provide public liability cover.

Cyber liability insurance

Many businesses have insurance to cover computers and mobile devices against theft, loss or breakdown.

But your business might also want to consider taking out 'cyber liability insurance'.

Cyber liability insurance covers your business in the event of:

  • lost data
  • viruses
  • hacking
  • data protection breaches

You can find more advice on cyber liability insurance on the Get Safe Online website.

Get the right business insurance
Insuring your business and its assets