Business Insurance UK 2026: Compare Cover, Costs & Quotes
Quick summary
Business insurance in the UK can cost from around £60-£2,000+ per year, depending on your business type, trade, turnover, staff count, location, cover level, claims history and policy add-ons.
Most UK businesses should consider a mix of:
- public liability insurance
- employers’ liability insurance
- professional indemnity insurance
- business contents or equipment cover
- stock cover
- business interruption insurance
- cyber insurance
- commercial vehicle cover
- product liability insurance
- tools cover
- legal expenses cover
- directors’ and officers’ insurance
If you employ staff, employers’ liability insurance is usually a legal requirement in the UK.
Other types of cover may not be legally required, but they can be essential if clients, landlords, trade bodies, contracts or your risk level require them.
As a simple guide:
| Type of business insurance |
Typical annual cost guide |
|
| Public liability insurance |
£60-£2,000+ |
Businesses dealing with customers, clients or the public
|
| Employers’ liability insurance |
£60-£200+ per employee |
|
| Professional indemnity insurance |
£80-£1,000+ |
Consultants, agencies, advisers, accountants, designers and IT firms
|
| Business contents insurance |
Quote-based |
Offices, shops, salons and premises-based businesses
|
| Stock insurance |
Quote-based |
Retail, ecommerce, hospitality and wholesalers
|
| Business interruption insurance |
Quote-based |
Businesses that rely on premises, stock, equipment or trading continuity
|
| Cyber insurance |
£200+ |
Businesses handling customer data, payments, systems or online services
|
| Tools insurance |
£50-£500+ |
Tradespeople and mobile workers
|
| Commercial vehicle insurance |
Quote-based |
Business vehicles, vans and fleets
|
| Directors’ and officers’ insurance |
Quote-based |
Limited companies, directors and leadership teams
|
The right cover depends on how your business operates.
Compare Business Insurance Quotes
Free quotes • No obligation • Compare UK insurers and brokers
Compare business insurance quotes
Use this guide if you are comparing:
- business insurance UK
- small business insurance
- public liability insurance
- employers’ liability insurance
- professional indemnity insurance
- cyber insurance for business
- business contents insurance
- commercial property insurance
- business interruption insurance
- sole trader insurance
- freelancer insurance
- tradesman insurance
- shop insurance
- restaurant insurance
- office insurance
- landlord business insurance
- commercial vehicle insurance
- directors’ and officers’ insurance
- business insurance quotes
Key Takeaways
- Business insurance protects against financial losses from claims, damage, theft, mistakes, disruption and legal action.
- Employers’ liability insurance is usually legally required if your business employs staff.
- Public liability insurance is not always legally required, but many customers, landlords, councils and contracts may expect it.
- Professional indemnity insurance is important if you provide advice, design, consultancy or professional services.
- Cyber insurance is worth comparing if you handle customer data, payments, online systems or email-based operations.
- Business interruption insurance is useful if you rely on premises, equipment, stock or physical trading.
- The cheapest policy is not always the best value if limits, exclusions or excesses are unsuitable.
- You should compare cover limits, exclusions, excesses, claims support and total annual cost.
- Sole traders, freelancers, tradespeople, retailers, landlords, restaurants and SMEs need different cover combinations.
- A comparison quote can help identify both over-insurance and missing cover.
Business Insurance Costs at a Glance
| Type of cover |
Typical annual cost |
Best for |
| Public Liability |
£118 – £2,000+ |
Businesses dealing with customers, the public, or working on-site
|
| Employers’ Liability |
£60-£200+ per employee |
Businesses with staff |
| Professional Indemnity |
£80-£500+ |
Consultants, agencies, designers, IT, advisers
|
| Cyber Insurance |
£200+ |
Online businesses, firms handling customer data
|
| Property/Contents |
Varies |
Offices, shops, stock-holding businesses
|
| Business Interruption |
Varies |
Businesses reliant on premises or uninterrupted trading
|
What affects the price?
Your premium will usually depend on:
- industry and risk profile
- number of employees
- turnover
- claims history
- premises value
- stock and equipment value
- level of cover selected
- optional add-ons and excess
Who This Page Is For
This page is most useful if you are:
- a sole trader looking for low-cost core cover
- a small business comparing public liability and employers’ liability
- a limited company needing broader protection
- a consultant or agency needing professional indemnity
- a retail, hospitality or property business needing premises-based cover
- a business owner wanting to compare quotes instead of overpaying
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: August 2026
For a comprehensive comparison, use our comparison tool here today.
Contents:
Best Option by Business Type
| Business type |
Cover likely to matter most |
Best route |
| Sole trader |
Public liability, tools, PI if advice-based |
|
| Freelancer/consultant |
Professional indemnity, cyber |
Flexible digital-first provider
|
| Tradesperson |
Public liability, employers’, tools, van cover |
Broker or insurer with trade-specific cover
|
| Retail shop |
Public liability, contents, interruption |
Multi-cover insurer |
| Hospitality |
Public liability, employers’, stock, interruption |
Provider with sector experience
|
| Growing SME |
Employers’, PI, cyber, property |
Tailored multi-policy quote
|
| Landlord/property business |
Property, liability, rent/interruption |
Specialist property-focused quote
|
What is Business Insurance?
Business insurance is a group of policies designed to protect a business from financial loss.
It can help cover costs linked to:
- injury claims
- property damage
- employee injury or illness claims
- professional mistakes
- legal disputes
- theft
- fire
- flood
- stock damage
- equipment damage
- cyber attacks
- data breaches
- business interruption
- vehicle accidents
- product claims
- director liability
Business insurance is not one single policy – most businesses build a package based on their risk.
What business insurance do you actually need?
The right insurance depends on your business activity.
| Cover type |
What it protects |
|
| Public liability |
Claims from customers, clients or the public for injury or property damage |
Trades, shops, cafés, salons, events, offices, landlords
|
| Employers’ liability |
Claims from employees for injury or illness caused by work |
|
| Professional indemnity |
Claims linked to advice, mistakes, negligence or professional services |
Consultants, agencies, accountants, IT firms, designers
|
| Product liability |
Claims caused by products you sell, supply, make or distribute |
Retailers, ecommerce, manufacturers, wholesalers
|
| Business contents |
Equipment, furniture, fixtures and contents |
Offices, shops, salons, clinics
|
| Stock insurance |
Stock held for sale or use |
Retail, ecommerce, hospitality, wholesalers
|
| Business interruption |
Lost income after insured disruption |
Premises-based and trading-dependent businesses
|
| Cyber insurance |
Cyber incidents, data breaches, ransomware and recovery costs |
Online businesses, professional services, ecommerce, clinics
|
| Tools insurance |
Tools and equipment |
Tradespeople, contractors and mobile workers
|
| Commercial vehicle |
Vehicles used for business |
Trades, delivery, field teams and fleets
|
| Legal expenses |
Legal advice and some dispute costs |
SMEs, landlords and employers
|
| Directors’ and officers’ |
Claims against directors or senior leaders |
Limited companies and leadership teams
|
Benefits of Business Insurance
-
Financial Protection: Covers legal costs, repairs, or compensation
-
Professional Credibility: Clients may require proof of cover
-
Legal Compliance: Mandatory for employers and certain sectors
-
Peace of Mind: Focus on growth instead of risk
-
Risk Awareness: Identify business vulnerabilities through assessment
Disadvantages of Business Insurance
-
Ongoing Costs: Premiums can add up
-
Complex Policies: Fine print matters; not everything covered automatically
-
Claims Process: Some businesses report delays or disputes
-
Exclusions & Limits: Multiple policies may be needed for full protection
Cost of Business Insurance
Insurance premiums vary based on risk factors, size, and cover types.
| Type of cover |
Typical annual cost guide |
Main cost factors |
| Public liability |
£60-£2,000+ |
Trade, public contact, claims history, cover limit
|
| Employers’ liability |
£60-£200+ per employee |
Staff count, work type, payroll and risk |
| Professional indemnity |
£80-£1,000+ |
Services, turnover, contract size and advice risk
|
| Cyber insurance |
£200+ |
Data volume, systems, turnover and controls |
| Contents insurance |
Quote-based |
Equipment, premises, security and value |
| Stock insurance |
Quote-based |
Stock value, premises, risk and seasonality |
| Business interruption |
Quote-based |
Revenue, premises reliance and indemnity period
|
| Tools insurance |
£50-£500+ |
Tool value, storage, vehicle use and claims history
|
| Commercial vehicle |
Quote-based |
Vehicle type, drivers, mileage and use |
| Directors’ and officers’ |
Quote-based |
Company size, sector and leadership risk |
|
|
|
Other cost influencers include claims history, turnover, location, and deductibles/policy limits.
What affects the cost of business insurance?
Insurers usually look at:
- business type
- trade or profession
- turnover
- number of employees
- payroll
- location
- premises type
- stock value
- equipment value
- tools value
- customer footfall
- work at height or hazardous work
- whether you work at client sites
- contract sizes
- claims history
- cover limits
- excess
- optional add-ons
- payment method
- whether you choose monthly or annual payment
- security measures
- cyber controls
- professional qualifications
- years trading
What Types of Business Insurance Are There?
Public liability insurance
Public liability insurance can cover claims if a member of the public, customer, client, supplier or visitor is injured or their property is damaged because of your business activities, so is important if you:
- meet customers in person
- work at client sites
- have visitors to your premises
- run a shop, café, salon or clinic
- attend events or markets
- work in homes or commercial premises
- deliver physical services
- handle customer property
Typical cover limits include:
- £1 million
- £2 million
- £5 million
- £10 million
Some contracts specify the minimum public liability limit you need
Employers’ liability insurance
Employers’ liability insurance helps cover claims from employees who are injured or become ill because of their work.
It is usually legally required if you employ staff, which can include:
- full-time employees
- part-time employees
- temporary staff
- apprentices
- some contractors
- volunteers in some circumstances
- work experience staff in some circumstances
There are exemptions, but most employers should assume they need cover unless they have confirmed otherwise.
Check before hiring anyone.
Professional indemnity insurance
Professional indemnity insurance can cover claims linked to professional advice, services or mistakes, so could be important if you:
- give advice
- provide designs
- manage projects
- handle client data
- create marketing campaigns
- provide consultancy
- provide IT services
- offer accounting or financial admin
- write reports
- produce technical work
- deliver professional services
Clients may require professional indemnity before signing a contract.
Common users include:
- consultants
- designers
- architects
- agencies
- accountants
- bookkeepers
- IT providers
- engineers
- surveyors
- project managers
- marketing specialists
Cyber insurance
Cyber insurance can help with the cost of cyber incidents, data breaches, ransomware, business interruption and recovery.
It could be worth comparing if your business:
- stores customer data
- uses cloud systems
- takes online payments
- runs ecommerce
- uses email heavily
- has remote workers
- stores employee data
- relies on CRM, booking or EPOS systems
- uses third-party software
- would lose income if systems went down
Cyber insurance does not replace good cybersecurity and insurers could ask you about:
- backups
- MFA
- antivirus
- patching
- access controls
- staff training
- incident response
- payment handling
- previous incident
Business contents, stock and property insurance
Contents and property insurance can cover physical assets such as:
- equipment
- furniture
- computers
- stock
- fixtures
- fittings
- tools
- machinery
- signage
- tenant improvements
- shopfronts
- office equipment
This cover is especially relevant for:
- offices
- shops
- cafés
- restaurants
- salons
- clinics
- warehouses
- landlords
- workshops
- hospitality businesses
- ecommerce businesses holding stock
Check whether the policy covers:
- theft
- fire
- flood
- accidental damage
- stock in transit
- stock at events
- seasonal stock increases
- equipment away from premises
- landlord requirements
Business interruption insurance
Business interruption insurance can help replace lost income if your business cannot trade because of an insured event, so important if you rely on:
- premises
- equipment
- stock
- kitchens
- workshops
- bookings
- footfall
- physical trading
- specialist machinery
- staff access
- supply chains
Check:
- what events are covered
- whether interruption must follow property damage
- indemnity period
- gross profit calculation
- exclusions
- waiting period
- supplier/customer extensions
- disease or denial-of-access wording
- whether remote trading changes your risk
This policy can be complex, so read the wording carefully
Product liability insurance
Product liability insurance can help cover claims if a product you make, sell, supply, import or distribute causes injury or property damage, so is relevant for:
- retailers
- ecommerce sellers
- food businesses
- manufacturers
- wholesalers
- importers
- cosmetics sellers
- product designers
- craft sellers
- subscription box businesses
Even if you did not manufacture the product, you may still face claims if you sold or supplied it.
Business insurance by business type
| Business type |
Cover to compare first |
Why |
| Sole trader |
Public liability, professional indemnity, tools if relevant |
Protects against client/public claims and equipment loss
|
| Freelancer |
Professional indemnity, public liability, cyber |
Useful for advice, client work and digital risks
|
| Consultant |
Professional indemnity, cyber, public liability |
Protects against service and advice claims
|
| Tradesperson |
Public liability, tools, employers’ liability, van insurance |
Covers site work, tools and staff risk
|
| Builder or contractor |
Public liability, employers’ liability, contractors’ all risks |
Higher site and property damage risk
|
| Retail shop |
Public liability, contents, stock, business interruption |
Customer footfall and stock exposure
|
| Café or restaurant |
Public liability, employers’ liability, stock, contents, interruption |
Food, premises, staff and customer risks
|
| Salon or beauty business |
Public liability, treatment liability, contents, stock |
Customer treatment and premises risk
|
| Office business |
Employers’ liability, contents, cyber, professional indemnity |
Staff, equipment, client and data risks
|
| Agency |
Professional indemnity, cyber, public liability |
Advice, deliverables and digital work
|
| IT business |
Professional indemnity, cyber, public liability |
Service failure, data and systems risk
|
| Landlord |
Property owners’ liability, building insurance, rent guarantee |
Tenant, property and rent risks
|
| Ecommerce business |
Product liability, stock, cyber, public liability |
Products, online payments and customer data
|
| Manufacturer |
Product liability, employers’ liability, property, interruption |
Product and operational risks
|
Do You Need a Broker or a Direct Insurer?
| Route |
Best for |
Main benefit |
Watch out for |
| Comparison site |
Sole traders and SMEs wanting quick quotes |
Fast quote comparison |
Not every insurer or specialist policy included |
| Broker |
Complex, higher-risk or specialist businesses |
Advice and market access |
Fees, commission and broker service quality |
| Direct insurer |
Businesses that know exactly what they need |
Direct relationship with insurer |
Less visibility of alternatives |
| Trade specialist |
Trades, professions or niche sectors |
Policy wording may fit sector better |
May not be cheapest |
| Package policy |
SMEs needing several covers |
Simple bundled cover |
Check limits and exclusions |
Why Businesses Compare Insurance Quotes
Comparing business insurance can help you:
- avoid paying for cover you do not need
- identify missing cover before a claim happens
- find better limits and policy wording
- compare excesses, exclusions and claims support
- match cover to your actual risk profile
Many businesses do not overpay because insurance is expensive … they overpay because they buy the wrong policy structure.
How to compare business insurance quotes properly
Do not compare only the cheapest premium, so compare:
- cover type
- cover limit
- excess
- exclusions
- policy wording
- optional add-ons
- claims process
- insurer name
- broker or platform role
- monthly payment cost
- annual payment cost
- cancellation terms
- admin fees
- document turnaround
- whether contracts/client requirements are met
- whether your trade is correctly described
- whether turnover is accurate
- whether staff count is accurate
What to Check Before You Buy
Before choosing a policy, check:
- what cover is included as standard?
- what is excluded?
- what cover limits apply?
- what excess applies?
- do I need employers’ liability?
- do I need professional indemnity?
- do I need public liability?
- do I need product liability?
- do I need cyber cover?
- are tools, stock or equipment covered away from premises?
- is business interruption included?
- are subcontractors covered?
- are temporary staff covered?
- is work at height covered?
- are hazardous activities excluded?
- are online sales covered?
- are overseas clients covered?
- can I provide certificates to clients?
- how do claims work?
- can I amend the policy as the business grows?
Is business insurance mandatory in the UK?
Some types of business insurance are legally required, while others are optional or contract-driven.
Usually legally required
Employers’ liability insurance
Most businesses with employees must have employers’ liability insurance. GOV.UK says the policy must cover at least £5 million and businesses can be fined £2,500 every day they are not properly insured.
Often contractually required
These can often be required by clients, landlords, councils, platforms, trade bodies or lenders:
- public liability insurance
- professional indemnity insurance
- product liability insurance
- commercial property insurance
- cyber insurance
- contractors’ all risks insurance
- commercial vehicle insurance
Often strongly recommended
These depend on risk:
- business contents insurance
- stock insurance
- business interruption insurance
- tools insurance
- legal expenses cover
- cyber insurance
- directors’ and officers’ insurance
If you are unsure, compare quotes by business type and check any client or landlord contract requirements.
Compare Business Insurance Quotes
Free quotes • No obligation • Compare cover for your business type
Business insurance providers to compare
Common UK business insurance providers and brokers include:
| Provider or route |
Why compare it? |
What to check |
| Simply Business |
Online business insurance comparison and SME policies |
Cover options, insurer panel, exclusions and add-ons
|
| Superscript |
Digital-first business insurance for startups, SMEs and tech-led businesses |
Flexibility, sectors covered and policy wording
|
| Direct Line for Business |
Direct insurer with common SME cover types |
Quote fit, exclusions and claims support |
| AXA Business Insurance |
Large insurer with business cover options |
Sector suitability and policy limits |
| Hiscox |
Specialist small business and professional cover |
Professional indemnity, cyber and sector wording
|
| Aviva |
Broad commercial insurance options |
Broker/direct route and policy fit |
| Zurich |
Commercial and SME insurance options |
Larger or more complex business suitability |
| Allianz |
Commercial insurance and broker-led cover |
Broker access and sector appetite |
| NFU Mutual |
Business and rural/commercial insurance options |
Regional support and business fit |
| Markel |
Specialist business, professional and charity cover |
Sector wording and specialist limits |
| Broker route |
Can compare multiple insurers |
Fees, commission, insurer panel and advice level
|
| Direct insurer |
Simple direct purchase |
Fewer alternatives compared side by side |
How to reduce business insurance costs
You may be able to reduce premiums by:
- comparing quotes before renewal
- choosing accurate cover levels
- avoiding unnecessary add-ons
- increasing excess where appropriate
- improving security
- using alarms, locks and CCTV
- training staff
- reducing claims risk
- keeping good health and safety records
- updating turnover accurately
- reviewing stock values
- paying annually if cheaper
- bundling suitable policies
- using a broker for complex cover
- reviewing cover when the business changes
Get business insurance quotes now →
Business Insurance FAQS
What is business insurance?
Business insurance is a group of policies that can protect your company from financial losses linked to claims, damage, theft, mistakes, cyber incidents, legal disputes or business interruption.
Is business insurance mandatory in the UK?
Employers’ liability insurance is usually mandatory if you employ staff. Other types, such as public liability or professional indemnity, may be optional legally but required by clients, landlords, contracts or trade bodies.
What business insurance do I legally need?
If you employ staff, you usually need employers’ liability insurance. If you use vehicles for business, you need suitable motor insurance. Other legal requirements depend on your trade, contracts and sector.
How much employers’ liability insurance do I need?
GOV.UK says employers’ liability insurance must cover at least £5 million from an authorised insurer. Many policies offer £10 million as standard, but always check.
What happens if I do not have employers’ liability insurance?
You can be fined £2,500 for every day you are not properly insured if you are required to have employers’ liability insurance.
How much does business insurance cost in the UK?
Business insurance can cost from around £60 per year for simple low-risk cover to £2,000+ per year for higher-risk or multi-cover policies. Larger, higher-risk or specialist businesses may pay more.
What affects the cost of business insurance?
Premiums depend on trade, turnover, staff count, premises, stock, equipment, claims history, cover limits, excess, location and optional add-ons.
What is public liability insurance?
Public liability insurance can cover claims if a customer, client, supplier or member of the public is injured or their property is damaged because of your business activities.
Do I need public liability insurance?
You may need public liability insurance if you deal with customers, visit client sites, have premises, attend events or work around members of the public. It may also be required by contracts.
What is professional indemnity insurance?
Professional indemnity insurance can cover claims linked to advice, mistakes, negligence, design errors, service failures or professional work.
Do freelancers need business insurance?
Freelancers may need public liability, professional indemnity, cyber insurance or equipment cover depending on the work they do and client requirements.
Do sole traders need business insurance?
Sole traders may need public liability, professional indemnity, tools cover, product liability or cyber insurance depending on their business activity.
Do limited companies need business insurance?
Limited companies may need employers’ liability if they employ staff, plus public liability, professional indemnity, cyber, property, contents or directors’ and officers’ cover depending on the business.
What is cyber insurance?
Cyber insurance can help with costs linked to cyber attacks, data breaches, ransomware, system recovery, legal support and business interruption.
What is business interruption insurance?
Business interruption insurance can help cover lost income if your business cannot trade because of an insured event such as fire, flood or serious property damage.
Is business insurance tax-deductible?
Business insurance premiums are generally treated as allowable business expenses if they are wholly and exclusively for business purposes, but check with your accountant for your specific situation.
Can I change business insurance provider mid-policy?
You may be able to cancel or switch, but check cancellation fees, notice periods and refund terms before changing provider.
Should I use a broker for business insurance?
A broker may be useful if your business is complex, high-risk, contract-led or specialist. Simple businesses may be able to compare online quotes directly.
What documents do clients ask for?
Clients may ask for public liability certificates, professional indemnity certificates, employers’ liability certificates, policy schedules and proof of cover limits.
How do I compare business insurance quotes?
Compare cover type, limits, exclusions, excess, claims support, insurer, payment terms and total annual cost. Do not choose based only on the lowest premium.
Compare Business Insurance Quotes Today
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- Find cover tailored to your business
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James Ward is the CEO & Founder of Compare Your Business Costs — a UK-verified comparison platform helping SMEs save money on business broadband, leased lines, phone systems, mobile telecoms, managed services and IT support. With over 10 years of experience in telecoms and technology procurement, James is a trusted UK business expert featured in national media and verified on Companies House.