Insurance Requirements for Small Businesses

All businesses will need some degree of insurance protection to cover them for day to day risks. Depending on the type of business and the number of staff employed, the specific mixture of policies that are required differs. Getting the right policies to suit your needs is something that all business owners should be aware of to ensure that they are properly covered, and also so that they do not need to spend money on services that are not needed.

Public Liability Cover

If your business operates in premises where people come on site, then having a public liability policy is essential. This type of insurance covers you in the event that a member of the public has an accident. This may include things like slips on a wet surface, or being injured. Cover will normally be in place for things which are outside your control – policies won’t normally cover you if the accident could have been avoided – so you still need to have warning signs and ensure that equipment is properly maintained.

Employee Liability Cover

This is essential for any business that employs staff. It works in much the same way as a public policy in that it covers you for accidents in the workplace. As before, you still need to have proper procedures in place for maintaining a safe environment.

Professional Indemnity Insurance

If you are a business which provides advice to customers such as a consultant or lawyer, then having a proper professional indemnity policy in place is essential. This covers you against any negative outcomes that come from the service you provide. Implied in any professional indemnity insurance is the fact that advice should be given in good faith and by someone who is properly trained and qualified to provide it. You will not be covered for advice that you’re not qualified to give.

Business Premises Insurance

Beyond the different types of cover which apply to the type of business that you’re running, you also need to have premises insurance to cover your place of work. This type of policy provides you with support in the event that your premises are damaged or unusable. The policy may cover you for loss of earnings in the even that you are unable to trade due to issues with your office.

Business Equipment Insurance

To some extent, equipment would be covered under your premises insurance, however it’s also important to include cover for your tools. Whether these are tech items such as laptops that your staff use outside the office, or internal equipment, having the correct policy is essential.

Vehicle Insurance

If your business is mobile or you use a vehicle as your place of work – such as a courier or delivery driver, its essential that you have the correct policy. Speaking to a specialist business insurance company like Bollington or Hiscox is useful because they will normally be able to advise you about the correct policies for your needs.


Whatever type of business you are in, its important to ensure that you are covered against any risks that may arise and which may harm your ability to trade. Speaking to a qualified advisor will help you to ensure that you arrange the correct level of cover without taking out policies that you don’t necessarily need and which may affect your bottom line.