Small Business Insurance

Our liability policies can cover you for public liability, product liability and employers' liability as well as professional indemnity and cyber liability to protect your business activities. The cover you need will depend on your business type and size, so it is worth speaking to one of our specialist advisers to discuss your insurance needs.

Some liability insurance policies are a legal requirement for businesses such as employers’ liability, whereas others such as public liability cover is prudent and recommended to protect you. The liability insurance you need will depend on factors such as business activities, size and location of your business. In order to ensure you are adequately protected you should speak to a specialist adviser.

It is important to protect yourself and your business from the risks that come with operating a business. Our policies can offer protection from a range of risks including theft and property damage, personal accident and cyber-crime. These could save you from the stress and financial burden should something happen.

The type of liability insurance you will need will depend upon your business. Some of the covers you have probably come across are public liability, which protects you should a member of the public sue after an injury due to your negligence, and employers' liability which is designed to protect you and your staff from injury or illness relating to work.

There are other forms of liability insurance, such as professional indemnity insurance, which can protect you if you are accused of providing inadequate advice, services or products to a customer. Cyber liability insurance can help to protect your business in the event of a cyber-attack, this is becoming an increasingly important policy due to the rise in hacks and the advancement in techniques used by cyber-criminals. Speak to an adviser to find out which liability insurance you need for your business.

Our liability insurance policies are designed to cover a range of risks and it is possible to combine a number of policies to suit your business needs, so the cost will depend upon a number of factors. We will discuss the liability insurance you need and the level of cover you require and obtain quotes from a number of specially selected insurers to allow you to choose the right policy.

Professional indemnity insurance, also sometimes called professional liability insurance, covers any advice you give to a client in your professional capacity and protects you should a client believe you have failed to produce work to a professional standard. For example, if you are an architect who has designed a building and in the course of the development it is found that the plans cannot be carried out and the work has to start again, or if you are an accountant, who gives your client financial advice which leads to them making a loss, then professional indemnity will protect you against professional negligence claims.

If your business is involved with giving clients advice or knowledge, you'll want to have Professional Indemnity Insurance. Professional Indemnity Insurance also covers your business should you be accused of failing to complete a job to a satisfactory standard.

If your business has any interaction with the public whatsoever, you'll want to consider taking out public liability insurance.

This type of liability cover is not a legal requirement. However, it is highly advised in order to avoid potentially costly legal action should your company's actions have a negative impact on a member of the public.

Read our full guide to public liability insurance.

Employers' liability insurance is one of the three main types of business insurance. It can cover compensation costs and legal fees if an employee or ex-employee sues for illness or injury caused by their work, on or off site. Even former employees can make a claim against you, if it's found that their injury or disease/illness resulted from their work whilst under your employment.

As a small business - whether you own commercial property or run a business from home - you will need employers' liability insurance if you have one or more employees. You should be insured for at least £5 million - an indication of how financially damaging a claim by an employee has the potential to be to your business, if you don't have cover in place. You are also required by law to post details of the insurance certificate for staff to see. The Health & Safety Executive (HSE) is the body responsible for enforcing the law on employers' liability insurance and can fine businesses for every day that they do not have this insurance in place - a cost that many small businesses can not afford!

An employee is defined as someone who works for you and:

• Is under a contract of service
• You deduct national insurance and income tax from their salary when you pay them
• You control when, where and how they work for you
• You supply their work materials and equipment
• They can't employ someone else as a substitute to do their work for them if they're unable to work

While not a legal requirement, having public liability insurance is an important consideration for any business that interacts with members of the public or other businesses. Without it, your business may find itself at serious risk of being sued for large amounts of money. A Another issue you could potentially face should you decide not to take out Public Liability Insurance is missing out on business contracts which may require proof of Public Liability cover.

The level of cover provided by public liability insurance ranges from £1 million up to £20 million and your insurance premiums will vary depending on the level of cover you take out and the nature of your business. To help bring your premiums down, you may want to consider taking out Small Business Insurance - an insurance package that includes Employers' Liability, Public Liability and other business essentials, such as cover for your tools and equipment. Remember: Some specialist insurance companies will offer discounts if you are a member of a professional body - so shop around and find the best deal for you.

Professional indemnity insurance is not relevant to all businesses. However, if you are in the business of selling your skills or knowledge then it may be prudent to take out professional indemnity cover. Many professions are required to have professional indemnity as part of their professional authorisation, including solicitors, accountants, architects, mortgage intermediaries, insurance brokers and financial advisers. Many consultants, advertising and PR agencies and designers also choose to have this type of insurance as it's often a condition of their contract. In addition, if you write articles for trade journals or magazines, then you may want to consider taking out Professional indemnity Insurance to protect you should anyone want to sue you for libel or slander.

Read our guide on 'What is the difference between professional indemnity and public liability insurance?'.

As there are a wide variety of liability insurance policies, it is always recommended that you check your policy documents for any specific exclusions.

To help keep your insurance costs at a sensible level, it is essential to consider what factors are important to you. Think about the current processes for claims reporting and monitoring – does your current broker or insurer give you enough information on the status of your claims? If not, make sure that you ask about this when comparing quotes. Don’t accept a quotation which doesn’t deliver the level of service you need.

Your insurance broker should be able to proactively advise you on growing risks – for example, cyber and data attacks, crime, terrorism, credit insurance, environmental issues, as well as options relating to healthcare and employee benefits. Ask your broker how they keep clients up to date with information on relevant risks.

To help you spread the cost of your premiums, we offer a quick and easy direct debit scheme for payment spread over ten months. Please visit our dedicated Direct Debit page to find out more.

If you would like to know more about our monthly payment option, please visit our dedicated Direct Debit page.

There are a limited number of insurance markets available for many commercial insurances in the UK, so it is unlikely that you will find a better deal by selecting a larger number of brokers. Try to compile your shortlist based on referrals or recommendations and ask them about their expertise, scale and knowledge of your sector.

When approaching the broker, be clear that they are one of a small shortlist, as they are then more likely to view you as a serious potential client and take time to understand your business needs. Remember to ask brokers about their risk management proposition, as insurers value the effort clients make in managing their own risk and this can be reflected in the pricing and terms offered.

When you are choosing a broker for your shortlist be sure that you select those who truly understand your business and can offer the service and expertise you need rather than just focusing on price alone.

We recommend that you select your shortlist at least four months before your renewal date. Get in contact with each company you have decided to shortlist (including your existing broker) and highlight that they are part of a shortlist of X companies. Set a clear deadline for quotes and make it clear that you will not consider quotes received after this date. Bear in mind that lead times can be approximately four months, so it can pay to start the process earlier than you might have originally planned.

You want to choose a company that demonstrates an understanding of your business and its needs. If the best service proposition is being offered by a company who is out of your budget, talk to them before ruling them out. If they are looking for a long-term business relationship, they may be willing to reduce costs.