Business Protection Insurance

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Introduction to business protection insurance

The advisors we work with are specialists when it comes to business protection insurance and can answer all your questions on who needs it, why you should get it, and the best business insurance for your circumstances.

In this article we’ll cover:

What is business protection insurance?

Business protection insurance is an umbrella term used to describe all of the different insurance protection products available to businesses. This includes public liability insurance, employers’ liability insurance, key-man insurance and business property insurance. 

Essentially, it’s a range of products that can protect your business from unforeseen losses due to events that can happen during the normal working day. 

How does business insurance work?

Your insurance provider will see if the event was within the scope of the policy and, if so, pay for any financial loss covered by the policy up to a pre-set limit.

This is why it is vitally important to speak to one of the specialist advisors we work with about your business needs. Make an enquiry and we will pass you to one of the experts.

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What is key person insurance?

Key person insurance, often called key man insurance, is a policy that a company or business can take out to protect themselves from financial losses in the event a vital employee dies, or falls ill and is unable to work. 

You can opt for life insurance only, or with critical illness included in the cover. Should you lose a key employee, you’ll receive a tax-free lump sum from the insurance provider. 

These policies are particularly useful for smaller companies where the loss of a key individual could seriously affect the financial viability of the company.

Do sole traders need business insurance?

Yes. Taking out a sole trader insurance policy will help protect you against the risks you face as a business owner. Depending on what kind of business you have, you may also need public liability insurance and professional indemnity insurance. 

Again, if you employ any staff, it is a legal requirement to take out employers’ liability insurance.

What is professional indemnity insurance?

You may also need professional indemnity insurance, especially if you run a business that offers advice or provides a professional service to customers. 

Essentially what it means is that if your business is sued by a client for making a mistake that leads to financial loss, it can cover compensation claims.

Do I need business insurance if I work from home?

If you have customers or suppliers who come to your home in connection with your business, then yes, you should really think about taking out public liability insurance. 

If you employ anyone, then you would be legally required to have employers’ liability insurance. 

Bear in mind that if you work from home, your household insurance may not cover your business equipment such as computers, printers and other office equipment.

Do I have to have business insurance in the UK?

The only mandatory insurance that you need in the UK is employers’ liability insurance. This is a legal requirement for any business that employs staff, even if it is on a casual basis. 

It essentially covers the legal costs if an employee claims compensation for any work-related illness or injury.

As an example, if an employee is injured should they trip over a cable in the office or slip on a wet floor, they could make a compensation claim against the employer. 

A court may order the employer to pay compensation for injury, costs and any other damages that may have been incurred. If you have employers’ liability insurance, then the compensation amount and legal fees can then be paid by the insurer, rather than out of your own pocket.

In some industries, regulators could require you to hold certain types of insurance to operate your business. 

Why do you need business protection insurance?

Many business owners work very hard to make their business or company a success, so protecting your hard work and investment makes sense. 

Without the protection of business insurance, you leave yourself open to paying out of your own pocket for costly damages to property or equipment, as well as employee and customer liability and legal claims against your company.

What types of business insurance are there?

There are many different products that provide similar business protection solutions but have distinct differences, so you’d be forgiven in thinking that buying business protection insurance can be pretty confusing. 

The most common products are:

  • Shareholder protection – This can help support your business and establish continuity if a shareholder dies or becomes incapacitated.
  • Key person insurance – Covers a business if an essential employee is unable to work through illness or death. 
  • Relevant life insurance – This can pay out a tax-free, lump sum if an employee dies.
  • Sole trader insurance – This covers include public liability and professional indemnity.
  • Professional Indemnity insurance – This covers the cost incurred by lost sales or damage to a business’ reputation.
  • Public Liability insurance – This covers the cost of claims made by members of the public.
  • Self-employed income protection – Provides a monthly income if you are unable to work due to illness.
  • Commercial buildings and contents insurance – Covers building and equipment in the event of damage or destruction. 

There are also more specialist business insurance products, including:

  • Locum insurance (for GPs)
  • Business interruption insurance
  • Overheads insurance

It is important that any insurance policy you take out is suitable for your circumstances.  For the right advice, talk with one of the specialist advisors we work with. They will be able to recommend policies to suit your needs, plus they have access to the whole of the market, meaning that they can find products that aren’t necessarily available to the public.

Should I have business car insurance?

Absolutely. If you or a member of staff operates a vehicle for business purposes, then having standard cover is not only risky (the insurance provider may not pay out), but it is also illegal. 

If you are caught by the police driving a commercial or business vehicle using standard insurance, you could receive a fixed penalty of £300 and 6 penalty points on your licencethe vehicle could also be seized and crushed. 

Because this is a specialised form of car insurance, you need the right advice. The advisors we work with can help you find the right level of insurance, that offers the protection you need, without paying over the odds. 

You can arrange a no-obligation chat with one of our specialist advisors.

Where can I find business insurance comparisons?

There are a number of options for this, but not all of them are recommended. You could do all of the legwork yourself by researching as many insurance providers as possible, but without access to the entire market, there’s no way you can be sure you’ve found the best deal.

Another alternative is to use an online rates table but keep in the mind that these services are not tailored to you as an individual and they often give prominent placement to sponsored products.

The best way to compare business insurance products and get an overview of the entire market is to enlist the help of an independent broker, like the ones we work with. They can look into your needs and circumstances and match you with the right provider.

In order to compare the numerous business insurance quotes you can get from scores of providers in the market, you will first need to establish exactly what type of protection you are looking for. 

Each policy is designed to fit a different purpose, so there is no need applying for key man quotes when you are looking to offer employees death in service as part of a benefits package. 

Similarly, some providers offer more comprehensive policies than others, and each has their own criteria to determine what is and is not acceptable in terms of medical history, occupation, age etc. 

Remember: The cost of a policy at quote stage is not always the cost of a policy after underwriting. 

To get, not only the best deal, but the right cover for your business, you should talk to one of the advisors we work with. They are experts when it comes to all types of business insurance and can offer the right advice.

Speak to a business protection insurance expert

The expert advisors we work have the knowledge to ensure you get the right advice and the best deal for your particular business.

Call us on 0808 189 0463 or make an enquiry and we’ll put you in touch with an expert who can offer free, no-obligation advice. 

Then sit back and let us do all the hard work.

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Call us on 0808 189 0463 or fill out our quick enquiry form to be matched with the perfect advisor for you.
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