Business Insurance UK 2026: Compare Quotes & Cover
Quick Answer
Business insurance protects your company against financial losses arising from risks such as accidents, injuries, professional mistakes, property damage, theft, cyber incidents and disruption.
The cover you need depends on what your business actually does and for example:
- Employ people? You will normally need employers’ liability insurance.
- Deal with customers or the public? Consider public liability insurance.
- Provide professional advice or services? Consider professional indemnity insurance.
- Sell or manufacture products? Consider product liability insurance.
- Own premises, stock or equipment? Consider commercial property, contents and stock cover.
- Rely heavily on technology or customer data? Consider cyber insurance.
- Could a major incident stop you trading? Consider business interruption insurance.
Not every business needs every type of cover.
The aim is to insure the risks that could materially affect your business without paying for cover you don’t need.
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What Business Insurance Do You Need?
If you’re not sure where to start, think about how your business operates and what could cause it a financial loss.
The right combination depends on your business.
A self-employed consultant working from home has very different risks from a restaurant, construction company, retailer or manufacturer.
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Key Takeaways
- Business insurance isn’t one policy – it can combine several different types of cover.
- Employers’ liability is normally legally required if you employ people, subject to exemptions.
- Public liability isn’t generally compulsory by law, but clients, landlords, venues or contracts may require it.
- Professional indemnity can be particularly important for businesses providing professional advice or services and is required in some regulated professions.
- The cheapest premium isn’t necessarily the best-value policy if the cover, limits or excesses are substantially different.
- Compare policies using the same business information and broadly equivalent cover.
- Check exclusions and policy limits before buying.
- Your cover should be reviewed when the business changes — for example when you employ staff, move premises, add services or increase turnover.
- Insurance brokers and comparison services may compare different numbers of insurers, so understand the scope of the comparison.
Contents
How Do We Work?
Our comparisons are researched and reviewed by the Compare Your Business Costs editorial team using provider information, official UK guidance and business buying criteria. See how Compare Your Business Costs works.
Authored by: Ally Cox – Business Technology & B2B Services Specialist, 10+ years’ experience.
Last updated: September 2026
What Is Business Insurance?
Business insurance is a broad term for insurance designed to protect businesses, self-employed people and professionals against financial losses associated with running a business and depending on the policy, cover can protect against risks involving:
- injury to employees
- injury to customers or members of the public
- damage to third-party property
- professional mistakes or negligence claims
- business premises
- equipment and stock
- theft
- business interruption
- cyber incidents
- legal costs
- products supplied by the business
The Association of British Insurers describes business insurance as protection for businesses and independent professionals against risks including mistakes, damage to stock or premises, legal costs and business interruption.
Is Business Insurance One Policy?
Not necessarily.
A business could buy individual policies or a combined package containing several types of cover.
For example, a small company might combine public liability + employers’ liability + professional indemnity + business equipment cover.
Another business may need a completely different combination, so start with your risks, not a predetermined list of policies.
How Much Does Business Insurance Cost in the UK?
There isn’t one reliable average business insurance price that applies to every UK company.
Premiums can vary substantially because insurers price the risk of the individual business and factors can include:
- type of business
- industry
- turnover
- number of employees
- location
- claims history
- cover types
- cover limits
- excess
- business premises
- equipment and stock values
- professional activities
- customer interaction
- cyber exposure
A low-risk self-employed professional requiring relatively limited cover could pay very differently from a construction company employing staff and operating at customer sites.
Why We Don’t Publish One “Average Business Insurance Cost”
A generic average can be misleading because business insurance is highly dependent on the risks being insured.
Instead, compare quotations using the same business details and cover requirements.
That gives you a meaningful comparison between the premiums actually available to your business.
Compare business insurance prices →
Which Business Insurance Is Legally Required?
The answer depends on how your business operates.
Employers’ Liability Insurance
If you become an employer, you will normally need employers’ liability insurance.
In Great Britain, qualifying employers must have cover of at least £5 million.
There are exemptions, including certain situations involving family members, so check the rules applicable to your business.
Business Motor Insurance
Vehicles used for business purposes need appropriate motor insurance.
Don’t assume a standard personal motor policy automatically covers business use.
Other Insurance Requirements
Other insurance may be required because of:
- professional regulation
- industry rules
- a client contract
- a landlord or lender requirement
- tender requirements
- membership of a professional body
For example, some regulated professions are required to maintain professional indemnity insurance.
Legal requirement and commercial necessity aren’t the same thing.
A policy can be extremely important to a business even where legislation doesn’t require it.
Public Liability Insurance
Public liability insurance can cover claims arising when a member of the public is injured or their property is damaged because of your business activities, so it can be relevant if:
- customers visit your premises
- you visit customers
- you work at third-party locations
- you attend events or exhibitions
- members of the public interact with your business
Is Public Liability Insurance Compulsory?
It isn’t generally a legal requirement for UK businesses – however, it can still be required by:
- clients
- venues
- landlords
- local authorities
- trade organisations
- contracts and tenders
Example
A customer visits your shop and alleges that they were injured after slipping on a hazard.
Public liability insurance may respond to an eligible claim, subject to the policy’s terms, limits and exclusions.
Public liability protects against third-party risks. It doesn’t replace employers’ liability cover for employees.
Learn more about public liability insurance →
Employers’ Liability Insurance
Employers’ liability insurance protects against eligible claims from employees who become injured or ill because of the work they do for the business.
For most employers, it isn’t optional.
How Much Employers’ Liability Cover Do You Need?
Qualifying employers in Great Britain must hold at least £5 million.
Policies must be obtained from an authorised insurer many insurers may offer higher limits, but the appropriate level should reflect your requirements and risks.
Employers’ Liability Certificate
Employers must make the certificate available where employees can access it. It can be displayed electronically provided employees know where and how to access it.
Failure to maintain required employers’ liability insurance can result in significant daily fines.
If you’re taking on your first employee, check your insurance requirements immediately rather than waiting for the next annual renewal.
Professional Indemnity Insurance
Professional indemnity insurance, often shortened to PI insurance, can protect businesses against eligible claims arising from professional advice, services, errors or omissions, so can be particularly relevant for:
- consultants
- accountants
- IT professionals
- designers
- architects
- engineers
- marketing agencies
- professional service businesses
Is Professional Indemnity Insurance Compulsory?
Not for every UK business, however, it can be:
- required by a regulator or professional body
- required under a client contract
- a tender requirement
- commercially important because of the nature of the work
Example
A consultant provides advice that a client alleges caused a significant financial loss.
Professional indemnity insurance may help with an eligible claim and associated defence costs, depending on the policy.
If clients rely on your expertise, PI insurance should be one of the first covers you investigate.
Product Liability Insurance
Product liability insurance can protect a business against eligible claims where a product it makes, sells or supplies causes injury or property damage, so can be relevant to:
- manufacturers
- retailers
- wholesalers
- importers
- distributors
- online sellers
Don’t assume liability rests only with the original manufacturer.
The circumstances surrounding the product and your role in the supply chain matter.
Public Liability vs Product Liability
Public liability: primarily concerns injury or damage arising from your business activities involving third parties.
Product liability: concerns injury or damage associated with products you make, sell or supply.
Some business insurance packages combine both.
Business Buildings, Contents, Stock & Equipment Insurance
Liability isn’t the only business risk – think about what it would cost to replace the physical assets your company depends on.
This can include:
- buildings
- office furniture
- computers
- tools
- machinery
- stock
- fixtures and fittings
- specialist equipment
Business Buildings Insurance
If the business owns its premises, commercial buildings insurance can protect the structure against specified insured events.
If you rent, the building itself may be insured by the landlord, but don’t assume that means your contents, equipment or stock are also covered.
Business Contents Insurance
Contents cover can protect equipment and other business property against insured risks such as theft, fire or damage, depending on the policy.
Stock Insurance
Retailers, ecommerce businesses, wholesalers and manufacturers may need specific protection for stock, so check:
- maximum stock value
- seasonal peaks
- where stock is stored
- goods in transit
- high-value items
Underestimating replacement values can leave a business inadequately insured.
Business Interruption Insurance
Business interruption insurance is designed to protect against loss of income where the business can’t operate normally because of an event covered by the policy.
For example, a serious fire could damage a business premises, and property insurance may address eligible physical damage.
Business interruption insurance may address eligible financial consequences of being unable to trade normally.
Depending on the policy, this can involve:
- lost income
- ongoing costs
- temporary operating costs
- additional expenditure needed to continue trading
Who Should Consider It?
Ask “If our main premises or critical equipment became unusable tomorrow, how long could the business continue financially?”
Businesses highly dependent on a physical location, specialist equipment or particular operations may have greater interruption exposure.
Cyber Insurance
Cyber insurance can provide financial and practical support following eligible cyber incidents.
Depending on the policy, cover can include areas such as:
- incident response
- data breaches
- business interruption
- cyber liability
- forensic investigation
- legal support
- data restoration
Which Businesses Should Consider Cyber Insurance?
It can be particularly relevant if your business:
- stores customer information
- takes payments electronically
- relies heavily on cloud systems
- operates ecommerce
- holds commercially sensitive data
- would suffer significantly if systems became unavailable
Insurance shouldn’t replace good cybersecurity.
Security controls reduce risk; insurance helps manage some of the financial consequences when an insured incident occurs.
Business Insurance by Business Type
Your industry and operating model can substantially change which risks matter most.
| Business Type |
Cover Often Worth Considering |
| Sole trader/freelancer |
Public liability, professional indemnity, equipment |
| Consultant |
Professional indemnity, public liability, cyber |
| Tradesperson |
Public liability, tools, employers’ liability where applicable |
| Retail shop |
Public liability, stock, contents, property, interruption, employers’ liability |
| Restaurant / café |
Public liability, employers’ liability, property, contents, stock, interruption |
| Office-based company |
Employers’ liability, public liability, contents, cyber, interruption |
| Online business |
Cyber, product liability where relevant, stock, professional indemnity depending on services |
| Construction business |
Public liability, employers’ liability, tools/equipment and specialist construction covers |
| Professional services |
Professional indemnity, cyber, public liability, employers’ liability |
| Landlord |
Landlord buildings/property cover, liability, loss-of-rent related cover where applicable |
These are examples, not universal policy recommendations and your actual requirements depend on the individual business.
Sole Traders & Self-Employed Businesses
Being self-employed doesn’t automatically mean you need every type of commercial insurance, but you can still face substantial claims.
A consultant may have professional liability exposure.
A tradesperson may accidentally damage a customer’s property and an online retailer may face product or cyber risks.
Small business doesn’t necessarily mean small risk.
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How to Compare Business Insurance Quotes
Price matters.
But comparing premiums without comparing the policies can be misleading.
We recommend checking:
1. What Is Covered?
Confirm the policy actually covers the activities your business performs.
2. Cover Limits
Check the maximum amount the insurer will pay under relevant sections of the policy.
3. Excess
Understand how much your business may have to contribute towards a claim.
4. Exclusions
Check what isn’t covered.
5. Optional Add-ons
Don’t assume optional cover is included in the base premium.
6. Claims Basis
For certain covers, particularly professional indemnity, understand how the policy responds to claims and the significance of maintaining continuous cover.
7. Payment Method
If paying monthly, check whether premium finance or additional costs make the annual amount higher.
8. Insurer & Intermediary
Understand who is providing the policy and who is arranging it.
9. Total Premium
Only compare price once you understand what each quotation actually includes.
A £150 policy and a £250 policy aren’t necessarily competing products if one provides materially different protection.
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How Much Business Insurance Cover Do You Need?
There isn’t one correct cover limit for every company, so consider:
- the maximum plausible claim
- client contract requirements
- regulatory requirements
- value of property and equipment
- number of employees
- size of projects or contracts
- potential third-party losses
- industry norms
Public Liability Cover Limits
The appropriate limit can depend on your activities and contractual requirements.
A customer or contracting organisation may specify a minimum amount of public liability cover.
Professional Indemnity Limits
Consider the potential financial consequence if professional work goes wrong.
A contract or professional body may also stipulate a minimum.
Employers’ Liability
Where the compulsory insurance rules apply in Great Britain, the statutory minimum is £5 million.
Don’t automatically select the highest limit available, but don’t choose an inadequate limit simply to reduce the premium.
What Is a Business Insurance Excess?
An excess is the amount the policyholder contributes towards an eligible claim before the insurer pays the remainder, subject to the policy terms.
For example:
Eligible claim: £5,000
Applicable excess: £500
The policyholder could be responsible for the first £500, with the insurer dealing with the remaining eligible amount subject to the policy.
Higher Excess vs Lower Premium
A higher voluntary excess may reduce the premium in some circumstances.
But don’t choose an excess the business would struggle to pay following a claim.
Insurance should transfer a manageable risk — not create another cash-flow problem.
What Are Business Insurance Exclusions?
An exclusion is something the policy doesn’t cover and common exclusions vary considerably by policy and insurer.
Check the documentation carefully for restrictions relating to your:
- business activities
- locations
- equipment
- products
- employees
- professional services
- security arrangements
- claims history
Why Accurate Information Matters
When obtaining a quote, describe the business accurately.
Don’t select a similar-sounding occupation purely because it produces a cheaper premium.
If the insurer doesn’t understand the activity being insured, you risk buying inappropriate cover.
The objective isn’t simply to obtain the cheapest quotation. It’s to obtain a quotation based on the correct risk.
Business Insurance Broker vs Direct vs Comparison
There are several ways to arrange business insurance.
Comparison Service
Can make it easier to submit business information and compare available options.
Insurance Broker
A broker can help businesses understand requirements and source cover.
This may be particularly useful where risks are:
- complex
- unusual
- high value
- difficult to insure
- spread across multiple locations
Direct to Insurer
Some businesses approach insurers directly.
That can be appropriate, but you’ll need to compare alternatives yourself if you want to understand how the offer compares with the wider market.
Does Every Comparison Cover the Whole Market?
No.
Different brokers and comparison services can work with different insurers, so ask what has actually been compared rather than assuming “comparison” means every insurer in the UK.
How to Reduce the Cost of Business Insurance
Reducing insurance cost shouldn’t mean simply stripping away useful protection, so instead, look at the factors you can control.
Compare Quotes
Different insurers can assess the same risk differently.
Provide Accurate Information
Make sure turnover, employee numbers, activities and other details are correct.
Review Cover
Check whether you’re paying for cover no longer relevant to the business.
Also check that new risks haven’t been overlooked.
Consider the Excess
A different voluntary excess can sometimes affect the premium, but make sure it remains affordable.
Improve Risk Management
Depending on the policy, insurers may consider factors such as:
- security
- fire protection
- health and safety
- staff training
- cybersecurity
- claims history
Review Before Renewal
Don’t wait until the last minute to understand whether the existing policy still suits the business.
The aim should be better value, not simply a lower premium.
Our View: Start With the Risk, Not the Insurance Product
Business insurance becomes confusing when you start with a list of policy names.
We think the easier approach is to ask What could realistically cost this business a significant amount of money?
For example:
- Employee gets injured → employers’ liability
- Customer gets injured → public liability
- Professional advice causes a loss → professional indemnity
- Product causes injury → product liability
- Premises damaged → property insurance
- Business can’t trade → business interruption
- Systems or data compromised → cyber insurance
That creates a much clearer buying process.
Our Preferred Buying Order
Business activities → legal/contractual requirements → major risks → cover types → cover limits → exclusions → excess → quotations → insurer.
Don’t Start With the Cheapest Premium
Price is important, but it belongs near the end of the comparison.
A cheap policy that excludes an important business activity isn’t good value.
Likewise, paying for every conceivable add-on isn’t automatically sensible.
Buy enough protection for the risks that matter, then compare what appropriate cover costs.
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Business Insurance FAQs
What is business insurance?
Business insurance is a broad category of insurance designed to protect companies, self-employed people and professionals against financial risks associated with running a business. Cover can include liability, professional indemnity, property, equipment, stock, cyber and business interruption.
Do I legally need business insurance?
It depends on your business. Employers’ liability insurance is normally legally required when you employ people, subject to exemptions. Appropriate motor insurance is also required for vehicles used for business. Other cover may be required by regulators, professional bodies or contracts.
What insurance does a small business need?
It depends on what the business does. Common covers include public liability, employers’ liability, professional indemnity, property, contents, cyber and business interruption. Start with the risks associated with your actual activities.
Do sole traders need business insurance?
There isn’t one insurance requirement that applies to every sole trader. A self-employed consultant may consider professional indemnity, while a tradesperson may place greater emphasis on public liability and tools cover.
Is public liability insurance compulsory?
Public liability insurance isn’t generally required by UK law, but clients, venues, landlords, local authorities or contracts may require it.
Is employers’ liability insurance compulsory?
It is normally compulsory if you become an employer, subject to specific exemptions. In Great Britain, qualifying employers must hold at least £5 million of cover from an authorised insurer.
Is professional indemnity insurance compulsory?
Not for every business. However, some professions, regulators and professional bodies require it, and clients can also make it a contractual requirement.
How much does business insurance cost?
There isn’t one standard UK price. Premiums depend on factors such as the business activity, turnover, employees, claims history, location, cover types, cover limits and excess.
Can I get several types of business insurance in one policy?
Yes. Combined business insurance packages can bundle several covers. Check exactly what is included rather than assuming every package contains the same protection.
What is public liability insurance?
Public liability insurance can cover eligible claims where members of the public are injured or their property is damaged because of your business activities.
What is professional indemnity insurance?
Professional indemnity insurance can cover eligible claims arising from professional advice, services, errors or omissions.
What is product liability insurance?
Product liability insurance can protect against eligible claims where products made, sold or supplied by the business cause injury or property damage.
What is business interruption insurance?
Business interruption insurance can cover eligible financial losses when the business is unable to operate normally following an insured event.
Does business insurance cover cyber attacks?
Not automatically. Businesses wanting protection against cyber incidents should check whether suitable cyber cover is included or buy a separate cyber insurance policy.
Does home insurance cover a business run from home?
Don’t assume it does. If you run a business from home, tell the relevant insurer and check what business activities, equipment, stock and liabilities are covered.
Can I claim business insurance as a business expense?
Some insurance costs incurred wholly for business purposes can be allowable business expenses. The precise tax treatment depends on the business and policy, so check current HMRC guidance or speak to an accountant if necessary.
Should I use an insurance broker?
A broker can be useful, particularly for complex risks. If using one, understand whether they are providing advice, which insurers they consider and how they are paid.
Should I automatically renew business insurance?
Renewal is a useful point to review whether your business, risks and cover requirements have changed. Compare the existing policy against suitable alternatives rather than looking at premium alone.
What information do I need for a business insurance quote?
Insurers commonly ask about your business activities, turnover, employees, location, claims history, required cover and other risk information. More complex businesses may need to provide additional details.
Compare Business Insurance Providers
Different insurers can specialise in different industries, business sizes and types of cover.
Rather than choosing a provider purely because its name is familiar, compare:
- cover
- limits
- excesses
- exclusions
- optional extras
- payment terms
- premium
You can also read our individual business insurance provider guides:
Provider availability, products and eligibility can change, so check the current quotation and policy documentation before buying.
Compare Business Insurance Quotes
The right business insurance isn’t simply the policy with the lowest advertised price.
Start with:
What does my business do?
Then establish:
- which risks need covering
- which cover is legally or contractually required
- appropriate cover limits
- an affordable excess
- which exclusions matter
Then compare quotations on a broadly equivalent basis.
Compare tailored business insurance quotes →
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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.