Which business covers are compulsory?

Most employers in Great Britain need employers’ liability of at least £5 million, subject to exemptions. Motor insurance is required for vehicles used on roads and in public places. Some professions have additional regulatory insurance requirements. Public liability is not generally compulsory by law, but a customer, landlord or contract may require it.

Is a family business exempt from employers’ liability?

Do not assume so. HSE guidance says the close-family exemption does not apply to incorporated companies. A company with only one employee who owns at least 50% of its issued share capital may have a separate exemption. Check the legal structure, ownership and everyone working for the business before relying on an exemption.

Does a business package include every cover I need?

No. A package includes the sections selected in its schedule. PI, cyber, motor and goods in transit may need separate policies or extensions. Check each insured activity, section limit and exclusion rather than relying on the label ‘business insurance’.

Does working from home change my insurance needs?

Yes. Tell your home insurer about business use and check business equipment, visiting customers and stock. A home policy does not automatically insure professional advice, product liability or employees. The right arrangement depends on the work and on what the existing policy permits.

How should I choose a business interruption period?

Work through the time needed to resume normal trading after insured damage, including planning, rebuilding, specialist equipment and customer recovery. Check the insured trigger and the policy’s financial definitions. There is no universal period that suits every business.

Will one policy cover several premises or activities?

It can, if all locations and activities are declared and accepted. Check per-location property and stock values, shared or separate liability limits, and any restrictions on overseas sales or work. Buying another site or adding a new service should trigger a policy review.

What information helps a broker compare business quotations?

Provide your activities, turnover, wage roll, employee duties, premises details, property and stock values, claims history and contractual cover requirements. Bring existing schedules and endorsements so the broker can compare exclusions, excesses and limits alongside the premium.

What must I disclose at renewal or when the business changes?

The Insurance Act 2015 requires a fair presentation before entering or varying a non-consumer insurance contract. Explain material circumstances clearly, including changed activities and known claims or incidents. During the policy, follow its notification conditions rather than waiting until renewal.

Business Insurance from £9.80/month

Written by the Premier Insurance broking team · Updated 27 October 2026

From £9.80/month. Compare business insurance from 200+ UK insurers in minutes. Public liability, employers' liability & professional indemnity all in one place.

Business insurance combines the covers your activities need: liability for injury or damage, protection for premises and stock, and cover for interrupted trading or professional mistakes. Most employers must hold at least £5 million employers’ liability; road vehicles need motor insurance. Other requirements depend on your regulator, contracts and the risks you want insured.

Which business insurance do I need?

Business type	Covers usually needed	Why
Sole trader working at clients' homes or sites	Public liability, tools, personal accident	Injury or damage you cause on someone else's property is the main exposure; tools in vans are a frequent theft claim.
Office-based consultancy or agency	Professional indemnity, cyber, office contents, employers' liability	Your risk is advice, designs or data, not physical damage. Clients' contracts usually set the PI limit.
Shop or retail unit	Stock, contents, buildings (if responsible), public and product liability, business interruption	Customers on the premises and goods you sell both create liability; stock and lost trading follow any fire, flood or break-in.
Café, restaurant or takeaway	Public and product liability, employers' liability, contents, stock, equipment breakdown, business interruption	Food safety, slips and kitchen fires drive claims; refrigeration breakdown can spoil stock overnight.
Builder or contractor	Public liability, employers' liability, contract works, plant and tools	Principal contractors and JCT contracts require evidence of liability limits and works cover before you start.
Online seller or e-commerce brand	Product liability, stock (at home, warehouse or in transit), cyber, goods in transit	You can be liable for products you import or own-brand, and card data makes cyber cover relevant.
Warehouse, wholesaler or distributor	Stock, buildings, goods in transit, employers' and public liability, business interruption	High stock values in one location make the sum insured and fire protections the key questions.
Business with vans or lorries	Commercial vehicle or fleet, goods in transit, employers' liability	Motor insurance is a legal requirement on the road; goods carried are not covered by a motor policy.
Limited company with directors	Directors' and officers', employers' liability, tax investigation	Directors can be personally pursued for decisions made on the company's behalf.

Check the schedule, not just the policy name

List every activity, premises and trading name. A retailer importing own-brand goods needs a different liability description from a shop reselling UK-sourced products.
Choose liability limits from the written contracts you accept. A client’s minimum is a starting point, not proof that the limit is enough for the possible loss.
Value buildings on a rebuilding basis rather than their sale price. Check stock at its seasonal peak and how the wording treats VAT, debris removal and professional fees.

Business interruption: follow the insured trigger

Business interruption usually depends on an insured event, such as covered property damage. A fall in demand or a supplier problem is not automatically covered.
Check whether the sum insured uses the policy’s definition of gross profit, revenue or another basis. Accounting gross profit may not be the insurance definition.
Choose an indemnity period that allows for permissions, replacement equipment, repairs and rebuilding customer trade. Do not assume the policy ends when the premises reopen.

UK rules and guidance

Cover by trade and product

Guides

Common questions

Which business covers are compulsory?: Most employers in Great Britain need employers’ liability of at least £5 million, subject to exemptions. Motor insurance is required for vehicles used on roads and in public places. Some professions have additional regulatory insurance requirements. Public liability is not generally compulsory by law, but a customer, landlord or contract may require it.
Is a family business exempt from employers’ liability?: Do not assume so. HSE guidance says the close-family exemption does not apply to incorporated companies. A company with only one employee who owns at least 50% of its issued share capital may have a separate exemption. Check the legal structure, ownership and everyone working for the business before relying on an exemption.
Does a business package include every cover I need?: No. A package includes the sections selected in its schedule. PI, cyber, motor and goods in transit may need separate policies or extensions. Check each insured activity, section limit and exclusion rather than relying on the label ‘business insurance’.
Does working from home change my insurance needs?: Yes. Tell your home insurer about business use and check business equipment, visiting customers and stock. A home policy does not automatically insure professional advice, product liability or employees. The right arrangement depends on the work and on what the existing policy permits.
How should I choose a business interruption period?: Work through the time needed to resume normal trading after insured damage, including planning, rebuilding, specialist equipment and customer recovery. Check the insured trigger and the policy’s financial definitions. There is no universal period that suits every business.
Will one policy cover several premises or activities?: It can, if all locations and activities are declared and accepted. Check per-location property and stock values, shared or separate liability limits, and any restrictions on overseas sales or work. Buying another site or adding a new service should trigger a policy review.
What information helps a broker compare business quotations?: Provide your activities, turnover, wage roll, employee duties, premises details, property and stock values, claims history and contractual cover requirements. Bring existing schedules and endorsements so the broker can compare exclusions, excesses and limits alongside the premium.
What must I disclose at renewal or when the business changes?: The Insurance Act 2015 requires a fair presentation before entering or varying a non-consumer insurance contract. Explain material circumstances clearly, including changed activities and known claims or incidents. During the policy, follow its notification conditions rather than waiting until renewal.

Business insurance protects a UK company against the cost of accidents, claims and unexpected events: public liability, employers' liability, professional indemnity, commercial property, business interruption and cyber cover, arranged from 200+ insurers by an independent FCA-regulated broker.

How to compare business insurance in the UK

A genuine comparison matches four things before price: the limit of indemnity, the sums insured for property and stock, the exclusions and endorsements, and the excess. Two quotes that look identical often are not — one may carry £1m rather than £5m of public liability, a heave exclusion, a hot-works condition or a £2,500 excess.

Broker, comparison site or direct?

Independent broker — 200+ UK and Lloyd's insurers, negotiated terms for non-standard risks, regulated advice on limits, and claims advocacy. Best for anything with a claims history, higher turnover, multiple sites, unusual trade or late-night hours.
Comparison site — typically 8 to 20 panel insurers, information only rather than advice, and you check the wording yourself. Fine for very simple low-risk trades.
Direct with an insurer — one appetite only. If your risk falls outside it, you are declined rather than placed.

What UK businesses typically pay each year

Sole trader, office based — £250 to £600
Sole trader, site based — £400 to £1,100
Small team, shop or salon — £1,200 to £3,500
Restaurant with 10 staff — £3,000 to £8,000
Contractor with 20 staff and vans — £8,000 to £22,000
Manufacturer turning over £5m — £15,000 to £45,000

Only two business insurances are legally required in the UK: employers' liability of at least £5 million, and motor insurance for vehicles used on the road. A packaged commercial combined policy typically costs 10 to 12 per cent less than buying the same sections separately. Start comparing three to four weeks before renewal.

Build your own figure with the business insurance cost calculator or the public liability calculator, read about business insurance, or call 020 8908 2426. Premier Insurance Services Ltd is authorised and regulated by the Financial Conduct Authority, firm reference 305009.

Speak to a UK insurance broker

Our brokers are available Monday to Friday 9am to 5:30pm. Call 020 8908 2426, message us on WhatsApp 07954 331362, or email hello@premier-insurance.co.uk. Visit our office at 49 Grosvenor Street, London W1K 3HP. You can also request a callback or learn more about our team.