Insurance for Business
Setting up or running a business is an exciting time – and while insurance might not be the first thing on your mind, getting the right cover in place early can make a big difference if something goes wrong.
It’s also worth seeking insurance advice before making key decisions about your premises, operations, or staffing. This can help you avoid issues down the line and ensure you’re able to secure the right cover. For example, locating in a flood-prone area could mean higher premiums or limited cover. Some insurers require certain security measures (like approved locks or fire alarms), or health and safety procedures to be in place before offering liability cover. If you import goods, work at height, or handle hazardous materials, this may also affect your policy terms.
Having the right advice early on can help you plan properly, meet insurer requirements, and avoid gaps in cover that could leave you exposed.
Some types of insurance are legally required, while others are expected by clients, landlords, or suppliers – and all can help protect your business financially. Here’s an overview of the key covers to consider as a startup or growing business:
Public & Products Liability Insurance
This is one of the most common types of business insurance – and while it’s not a legal requirement for most, it’s often expected in contracts and agreements.
Public liability protects your business if someone is injured or their property is damaged as a result of your business activities – for example, if a customer trips in your premises or a tool causes damage at a client’s site.
Products liability is often included in the same policy and covers injury or damage caused by products you make, sell, supply, or repair – even if the item was manufactured by someone else. This is especially important for businesses involved in retail, food and drink, or manufacturing.
Employers’ Liability Insurance
This is a legal requirement if your business has any employees – including part-time staff, volunteers, apprentices, or even unpaid workers under your control. It covers claims from employees who suffer injury or illness as a result of their work.
If your business is a limited company with more than one director, you will likely need this cover even if you don’t employ anyone else.
Professional Indemnity (or Professional Liability) Insurance
If your business provides advice, consultancy, design, or professional services – this cover protects against claims of negligence, error, or omission. It’s essential for traditional professionals like architects or accountants, but also for coaches, consultants, IT providers, and many service-led businesses.
Even if not legally required, many contracts and clients will insist you have this in place.
Motor Insurance
If your business owns or uses vehicles – cars, vans, or bikes – you’ll need insurance just as you would for private use. Commercial vehicle insurance is typically more expensive than personal policies.
For new businesses, using a personal vehicle with business use added might be more cost-effective to start with, but always check with your insurer or broker that you’re adequately covered.
Property, Equipment & Contents (Material Damage)
This covers physical assets such as buildings, contents, tools, stock, or computers,– whether kept at a business premises or at home. It protects against risks like fire, theft, flood, and accidental damage.
The more you invest in your business, the more important it becomes to ensure these items are properly insured.
Business Interruption Insurance
If something happens that stops your business from trading (such as a fire or flood), business interruption cover replaces lost income and helps you keep running while you recover.
It’s often linked to property damage policies and requires careful calculation to make sure the cover matches your business’s income, profit, and likely recovery time.
Cyber & Crime Insurance
Cyber threats affect businesses of all sizes. This insurance covers incidents like hacking, data breaches, or ransomware attacks – and often includes help with investigation, customer notification, and legal action.
Some policies also cover fraud, social engineering scams, or financial crime involving staff or third parties.
Directors & Officers (D&O) Insurance
This protects individual directors and officers if claims are made against them for decisions made in the course of their role. It can cover allegations of mismanagement, breach of duty, or employment disputes – offering peace of mind for those with responsibility in limited companies or charities.
Legal Expenses Insurance
This covers the cost of legal disputes your business might face – including issues with employees, contracts, property, or tax investigations. Many policies also include access to legal advice helplines and support with HR matters.
Other Covers to Consider
Depending on your business activities, you may also want to look at:
And much more.
For more advice, contact our expert* Martin on martin@theyorkshirebroker.com or call 01924 929070.
Why not check out the benefits that becoming a member of We Are Wakefield can offer you at https://wearewakefield.org.uk/!
*Our experts don’t pay to be on BuBul, and they don’t pay us commission. They will offer you 30 minutes of free advice.
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