Commercial insurance, commonly known as business insurance in the UK, includes all types of insurance policies for your business or self-employed individuals. It keeps your business safe from losses caused by unexpected events like lawsuits or accidents and is tax deductible as an allowable business expense. With UK commercial insurance rates falling by 2% in the first quarter of 2024*, now is the right time to purchase commercial insurance.
Do you need Commercial Insurance?
Are you a small to large business?
Any UK business with at least one employee is legally required to have employer’s liability insurance. Skipping this coverage can result in hefty fines.
If your business uses vehicles, like taxi fleets or driving schools, commercial vehicle insurance is usually required.
While other types of business insurance aren’t mandatory, they can protect your business from financial risks. The specific coverage you need depends on factors such as your industry, business size, and activities.
Are you self-employed?
If you don’t have any employees, you won’t need employer’s liability insurance. The same goes for commercial vehicle insurance if you don’t use a car for work. However, other types of policies, like Personal Accident Cover or Public Liability Insurance, can be crucial for self-employed people.
Types of Commercial Insurance
- Commercial Property Insurance caters to businesses with substantial physical assets like equipment, inventory, and furniture. This insurance protects businesses from losses caused by events such as fire, storms or theft.
- Business Interruption Insurance is particularly relevant for companies with physical premises, such as retail stores or manufacturing facilities. This type of insurance compensates businesses for lost income resulting from events that disrupt normal operations. It’s commonly included as an add-on to property insurance or as part of a business owner’s policy. Some policies may also provide compensation if a government action forces the closure of the business.
- As mentioned earlier, Employer’s Liability Insurance is the only type of business insurance that is legally required in the UK. This type of insurance policy protects employers from financial losses resulting from employee injuries or illnesses related to work activities.
- Public Liability Insurance protects in case your business activities result in injury or damage to the public or their property. It covers legal expenses and compensation if someone takes legal action against you. It’s suitable for businesses of all sizes, including self-employed individuals and freelancers like plumbers, taxi drivers and hairdressers.
- Personal Accident Cover provides financial protection for you and your family in the event of serious injury, ensuring you receive compensation for lost earnings. In the event of a qualifying incident, you’ll receive a payout, which can be used to cover day-to-day expenses and medical costs.
- Combined Commercial Insurance offers tailored coverage for businesses, bundling various protections into a single policy. This comprehensive approach eliminates the hassle of managing multiple policies while ensuring your business is fully protected. Each business faces unique risks, so insurance providers allow customisation to match specific coverage needs based on industry, business size, and activities. This flexibility ensures that your insurance plan aligns perfectly with your business requirements.
Find the right commercial insurance for your business
With an astonishing 80% of the 4.3 million SMEs in the UK believed to be underinsured*, putting them at risk of financial strain, it’s essential to make sure you’re properly covered.
Start your free quote online here or talk to our experts for help.
* https://www.insuranceage.co.uk/insight/7954830/uk-commercial-insurance-rates-fell-2-in-q1-marsh