Business insurance covers a range of risks specific to running a company, from legal liability to property damage and business interruption. Which types you need depends heavily on your business activities, whether you employ staff, and whether you work with the public.
Employers' liability — usually a legal requirement
If you employ staff, Employers' Liability Insurance is a legal requirement in almost all cases (with narrow exceptions), covering claims from employees injured or made ill through their work. Operating without it when required can result in significant fines, so this is generally not optional the way other cover types are.
Public and product liability
Public liability covers claims from members of the public injured, or whose property is damaged, because of your business activities — relevant for almost any business that deals with customers or visitors on-site. Product liability is similar but specifically covers harm caused by a product you manufacture, sell, or supply.
Professional indemnity
This covers claims that your professional advice or service caused a client financial loss — relevant for consultants, accountants, solicitors, architects, and similar service-based businesses. Many professional bodies and some contracts require a minimum level of this cover before you can practise or bid for work.
Business interruption and property
Property cover protects your premises, stock and equipment against risks like fire, flood or theft. Business interruption cover complements this by covering lost income if your business can't operate normally following an insured event — worth considering alongside property cover rather than as a substitute for it.