top of page


SKU: 7.71
  • Advice

    Business owners face certain levels of risk when they begin their venture, these may be from finance or the result of environmental disasters or social movements. Owners will therefore seek to ensure that they are well protected when incidents begin to affect their business negatively. Even with well-established companies and businesses, there is an increasing and prevalent requirement for their businesses to be protected, as their sector may require certain forms of insurance to be in place in the event of disasters or to protect their employees and key figures of their business model.


    Failure to pay for compulsory insurance may result in many penalties being levied, and if an accident were to happen, then your business would suffer from paying compensation to anyone who was injured or set back by the event. Owners may then face terms of imprisonment for their conduct. It is therefore very important to address changes to insurance when such incidences happen.


    The following is a list of common insurances.


    Types of Business Insurance

    Insurance Type

    Uses and Necessity

    Public Liability

    Public Liability is a form of insurance that protects the business from claims of legal expenses or compensation if members of the public, such as clients or suppliers or the man on the street get injured on your premises or if you carry out work on client sites. In the event of an accident that occurs during your work, such as a faulty installation that causes property damage, you will only be required to pay a small sum of money compared to exorbitant legal and compensation fees. This is not a necessary form of insurance, though it may be quite desirable for businesses who rely on foot traffic or working onsite in clients’ homes to provide goods and services.

    Employers’ Liability

    Employers’ Liability helps employers pay compensation if an employee becomes injured or ill due to the work, they perform for you. This is a compulsory form of insurance, requiring the policy to cover at least £5,000,000. This must come from an authorised insurer. Failure to display your Employers’ Liability insurance or refusal to make it available on-demand will result in a £1,000 fine. If you do not have this insurance at all, and you carry out work in the business, you can be fined £2,500 every day that you do so. It is therefore very important that you do have this insurance before you conduct any business with employees under your care.

    Product Liability

    This form of insurance ensures that in the event of a person sustaining injury or damage to a property caused by a product you have sold, such as machinery or food, is covered. Sometimes it is necessary even if you have not sold the product, such as when your business has its name or brand on the product. This means that compensation claims will be reduced by the level of insurance you can claim on your policy. This is not a legal requirement, however, some businesses such as suppliers, distributors or retailers will require you to have it. If you are found to be liable for injury, damage or death caused by one of your products you can be sued.

    Professional Indemnity

    Often referred to as professional liability insurance, this will cover the legal expenses incurred from defending yourself from claims that advice or services you have provided to your client was faulty, inadequate or led to some avoidable circumstance. This may happen when you are providing services such as contracting or consulting with the public, providing designs or as a freelancer or self-employed professional. This is a regulatory requirement with some industries - meaning that although it is not a legal requirement, you may be prevented from practising and may be fined if you do so without this insurance.

    Business Interruption

    Business interruption protects against loss of income during periods where you cannot carry out business as usual due to an unexpected event, such as the recent pandemic. It aims to put your business back into the same trading position it was in before the event occurred. This may be from damage caused to your premises or the breakdown of essential equipment, or people not being able to access your business premises. This is not an essential form of insurance, and it is up to the owner to decide whether to take business insurance (it is not compulsory). It is often included as an optional add-on to business insurance packages.

    Business Property Coverage

    Otherwise known as Business Buildings Insurance, this form of insurance covers instances of theft, fire, burst pipes, riots, accidental damage, subsidence, business interruption, stock and cash on-premises and legal cover. If you are working from home then the standard business policy may not apply. Please check your policy or enquire with your insurer to make sure you are covered. This is not a legal requirement, but may be necessary for some businesses


    Key-man insurance protects a business when an important member of the business’s essential operation, such as a CEO or product manager is unable to work. It is essential to protect the business from loss of income when a person with a specialist skillset required for the business is unable to work. If this happens, the insurance will compensate for any losses to ensure that the business can run as it would normally. This is not compulsory but may be useful if your business model relies on important members performing essential skills that no one else can do.

    Credit Risk

    This protects the policyholder in the event of another business or customer becoming insolvent or failing to pay its trade credit debts. Insurers will cover the cost that is owed to your business and will ensure that you will not suffer a loss as a result of creditors. This is not a necessary form of insurance, though may be useful if you work in sectors dealing with a large volume of clients with a high risk of default.


    This is not a compulsory form of insurance, but if your business primarily deals with using, sending or storing electronic data which is vulnerable or sensitive, then getting cyber insurance may provide financial support if an incident occurs.



    The most common forms of insurance are often where businesses will foresee issues or risks in conducting their work. It is important for all business owners to determine their required insurance provision.

Click hear to book your

free initial consultation:

bottom of page