What is Business Insurance?

If you’ve ever wondered, “What is business insurance?” – we’re here to help.

Business insurance protects companies from a range of unexpected events and costs that might otherwise threaten their survival. Whatever your trade, there’s a type of business insurance to suit your needs.

But what does business insurance actually cover? There’s a wide variety of cover types available that can make up a complete business insurance package, from professional indemnity cover to tool cover. Each business has unique needs when choosing the right policy for them, our team is always on hand to help you construct the best business insurance package for your business.

Below, we’ll walk you through what business insurance covers, why it’s essential, and the factors that influence its cost.

What does business insurance cover?

Business insurance can cover a range of risks, depending on the policy you select. Determining the right type of cover depends on factors like your industry, premises, equipment, and more.

A business insurance policy can be tailored to cover many different scenarios. You can select the cover types that work best for your business to determine what your business insurance policy will cover. Common cover types included in business insurance packages include:

• Contents and Stock Cover: Protects against damage to possessions or equipment at your business premises in events like fire, flood, or theft.
• Public Liability Cover: Safeguards against claims from third parties, like visitors, in case of injury or damage to their property related to your business activities.
• Employers’ Liability Insurance: Covers claims from employees who suffer illness or injury due to employers’ negligence while working. This type of insurance is often legally required for businesses with employees.
• Professional Indemnity Cover: Protects against claims if a client suffers financial loss due to your advice or services.
• Cyber and Data Cover: Provides support if your business suffers a cyber attack or data breach, including recovery costs, expert help and advice and crisis containment.

At Premierline, we’re experts at tailoring business insurance packages, whether you’re in construction, beauty, hospitality, or many other industries.

Why you need business insurance

Business insurance is designed to protect your property, investments, and livelihood when unexpected events occur. In many cases, it can be the difference between your business surviving a crisis or being forced to close. The right business insurance can even protect your business when forced to close for reasons outside of your control. Here are a few instances where business insurance proves invaluable:

• Injury: Public liability insurance covers legal fees or compensation if a member of the public is injured or their property is damaged due to your business activities.
• Burglary: Contents and stock cover can help recover losses and repair damages from a burglary, which can be financially devastating, especially for smaller businesses.
• Cyber Attack: Cyber and data cover protects against financial losses due to cybercrime. Many attacks target small and medium-sized businesses, with a significant number struggling to recover.
• Fire: Contents and stock cover helps cover repair and replacement costs if a fire damages your business premises.
• Serious Illness or Death: Key person cover helps manage financial losses if a crucial team member becomes seriously ill or passes away.

Is business insurance a legal requirement?

In the UK, employers’ liability insurance is the only legally required type of business insurance. It covers claims for illness or injury from employees, with fines from the Health and Safety Executive (HSE) applying if you trade without it.

Some regulatory bodies may also require specific insurance. For instance, solicitors and accountants often need professional indemnity cover, while clients or investors may expect you to have public liability cover.

How much is business insurance?

The cost of business insurance depends on many factors including but not limited to:

• The level of cover required
• Business size and industry
• Business experience and history
• The location of your business
• Annual turnover
• Previous claims history

Due to the complexity of these factors, getting a tailored quote from our team is the best way to understand the cost of business insurance for your specific needs. We’re committed to providing you with the right cover, so you can focus on what you do best.

Get in touch with the Premierline team today to find out what a comprehensive business insurance package could look like for you.

Call: 0333 320 6009

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