What business insurance does my company actually need?

The three questions to answer first

Before comparing insurance, answer three questions. First, could your work injure someone or damage property? Second, do you employ anyone? Third, do clients rely on your advice, design, specification or professional service? These answers usually point towards public liability, employers' liability and professional indemnity cover.

From there, think about the things your business owns or depends on. That may include stock, tools, computers, premises, vehicles, cyber systems, key people or business interruption protection. Different businesses need different combinations.

Common types of business cover

Public liability can help protect against claims from third parties if someone is injured or property is damaged because of your business activity. Employers' liability is required for most employers and helps cover claims from employees who are injured or become ill because of work. Professional indemnity is important for businesses giving advice, designs, consultancy or professional services where a mistake could cause a client financial loss.

Other covers may include tools, stock, buildings, contents, product liability, cyber, directors and officers, goods in transit and commercial vehicle insurance. A small shop, marketing consultant, drainage contractor and software company will all have different needs.

Why claims history matters

Insurance partners will usually ask whether the business has had previous claims, incidents or cancellations. Claims history helps insurers understand risk and price the policy. Be accurate. Missing information can cause problems later if you need to claim.

When to speak to a broker

A straightforward business may be able to get a quote quickly. A more complex business should speak to a broker or authorised insurance partner. Complexity can include higher turnover, manual work, regulated services, unusual premises, previous claims, higher contract requirements or work in higher-risk sectors.

CostQuote does not replace regulated insurance advice. The role is to help you organise the enquiry and route your details to the relevant partner so they can discuss the right cover.