Protect Your Business: UK Insurance Cover Facts


Every new business owner wants to maintain a positive outlook when starting a business. However, optimism won’t protect your business from losses when the unexpected occurs. In the UK, some insurance policies are a legal obligation for businesses, but truly conscientious business owners would purchase cover anyway – seeing it as a way to protect employees, customers and assets, and keep the business afloat should the going get rough.
With so many insurance products available, choosing the right insurance for your business might be confusing. The following guide should give you a start and help to outline the legal requirements and a few “nice to have” products to cushion your business.
Employers’ Liability Insurance
Employers’ Liability Insurance becomes a legal requirement as soon as you hire your first employee. This rule applies to full-time staff as well as seasonal or short-term helpers. The required minimum coverage of £5 million may go up depending on the size of your business and the level of risks involved.  According to, most policies automatically provide £10 million of coverage. The policy can provide compensation should your employeesfall ill or sustain injury as a result of carrying out their  job. Some family businesses may be exempt, but for all other businesses, employer’s liability insurance is a legal requirement.
Public Liability Insurance
Public liability insurance can provide protection for your business from outside claims. This policy can not only protect your business from common injury claims, but may also cover serious claims, such as construction accidents where your business causes damage to another person’s property. The coverage could pay for the compensation as well as your legal costs in defending the claim.
Property Insurance
You’ll have a hard time fulfilling client orders or meeting customers’ expectations without the tools of your trade. Property insurance pays to replace your equipment and inventory in the event they’re stolen, damaged or lost. If you own commercial property, you must purchase a buildings insurance policy, at a minimum, to protect one of your most major assets in case of fire, flood or other events that could damage your property. Make sure to purchase coverage equal to or greater than the value of your building and equipment, which may mean updating your policy when you purchase more equipment.
Other Policies To Consider
If your business income stems primarily from selling your expertise or knowledge, professional indemnity insurance could be worthwhile. Larger businesses will insist on it if they do business with you. Trade credit insurance, which covers the actions of non-paying clients, may also be beneficial if you need a reliable cash flow. Finally, you shouldn’t neglect key person insurance, to provide a source of income in the case of injury of death. It can protect your business’s longevity.

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