Small Business Insurance

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Our top recommended policies for small business owners and contractors

No single small business insurance policy covers all risks. Different types of commercial insurance address different accidents, lawsuits, and damages that could impact a business. These policies address common risks.

General liability insurance

This policy covers common business risks including bodily injuries, customer property damage, and advertising injuries. It's required for most commercial leases.

Business owner's policy

A BOP bundles commercial property insurance and general liability insurance under one plan. It's one of the most cost-effective commercial insurance policies.

Professional liability insurance

This policy, also called errors and omissions insurance (E&O), can help cover legal expenses if a business is sued for unsatisfactory work.

Errors and omissions insurance

E&O, sometimes called professional liability insurance, is common with professional services. It can cover legal costs of lawsuits related to work performance.

Workers’ compensation insurance

This policy is required in almost every state for businesses with employees. It also protects sole proprietors against work injury costs that health insurance might deny.

Cyber liability insurance

This policy helps businesses survive data breaches and cyberattacks by helping pay for recovery expenses and associated costs.

How much does small business insurance cost?

Small businesses, especially low-risk ones, often qualify for discounted business insurance. Several factors affect policy costs, including:

Industry and risk factors
Coverage limits
Location
Number of employees
Auto insurance for small businesses
Business-owned vehicles are required to have commercial auto insurance. Additionally, personal vehicles used for business purposes are not covered by your personal auto insurance policy.

Commercial auto insurance

This policy is usually required for business-owned vehicles. It helps cover the costs of a vehicle accident, theft, or vandalism.

Hired and non-owned auto insurance

HNOA covers a business's liability in accidents that occur while driving leased vehicles, rentals, and employee-owned cars for company errands.

Find business insurance requirements in your state

Select your state to learn about insurance requirements for your small business.

Specialized coverage for unique risks

Businesses with expensive equipment, a board of directors, or extra liability concerns may need additional coverage, or endorsements that cover common exclusions. Coverage for communicable diseases is available, but it's not part of standard policies. Most insurers will not write new policies covering COVID-19.

Commercial umbrella insurance

This policy provides additional coverage once another policy's limit is reached. It boosts coverage on your existing general liability insurance and other liability policies.

Commercial property insurance

This policy covers the value of a business's physical structure and its contents, such as inventory, equipment, and furniture.

Business interruption insurance

This policy covers lost revenue, rent, and other day-to-day expenses when an event forces a business to temporarily stop operations.

Inland marine insurance

This policy provides property coverage for business items used in the field. It typically pays for property that has been lost, damaged, or stolen.

Product liability insurance

Included in general liability, this policy covers injuries or property damage caused by your product or completed service. It's also called products-completed operations coverage.

Employment practices liability insurance

This policy, also called EPLI, can cover legal expenses when an employee sues over discrimination, harassment, wrongful termination, and similar issues.

Directors and officers insurance

D&O insurance covers decisions made by directors, officers, and board members on behalf of the company. If they are sued, it may pay their legal expenses.

Special event insurance

This policy combines liability and property coverages for events that occur outside of normal business activities.

Common questions about small business insurance

What does small business insurance cover?

No single insurance policy covers everything. In general, there are two broad areas of insurance coverage:
Business liability insurance covers incidents in which someone holds your business responsible for damages, injury, or loss.
Commercial property insurance pays for repair or replacement of damaged or stolen business property. It also covers your building if you own it.

How much does small business insurance cost?

Business insurance costs vary based on the policies you purchase and your coverage limits. Other factors include your industry, number of employees, revenue, and location. Small, low-risk businesses – especially those that qualify for a business owner’s policy – pay less for insurance than larger companies.

Why do I need business insurance?

Business insurance, also called commercial insurance, provides crucial protection for any small business. If there’s an accident at your business, you could face a lawsuit. The high cost of litigation, medical bills, and property damage claims is the primary reason businesses need insurance.

Your risk exposure determines which policies you need. The policy most businesses purchase is general liability insurance, which protects against customer injuries and other common accidents. You may need additional policies if you have employees, own a building, own a business vehicle, or provide expert advice.

How do I get small business insurance?

It’s easy to get small business insurance if you have your business information on hand. An insurance application will ask for basic facts about your business, such as revenue and number of employees. With Insureon, you can complete one application to receive multiple quotes from top U.S. carriers. You can buy insurance policies for a wide range of risks.

Policies for specific industries

These policies cover the risks of certain industries, such as bars and construction companies.

Liquor liability insurance

This policy helps pay legal fees, settlements, and medical costs if alcohol is served or sold to a visibly intoxicated person who then harms others.

Builder's risk insurance

This policy covers structures in progress and materials, often paying for damage caused by fire, vandalization, and non-severe weather events.

Contractor's tools and equipment

This policy covers the value of a contractor's lost, stolen, or damaged equipment.

Bonds for small businesses

Businesses may need bond insurance if they work with the government or handle a client’s finances.

Fidelity bonds

Fidelity bonds compensate clients for employee theft, including theft by electronic funds transfer. They're also called employee dishonesty bonds.

Surety bonds

Surety bonds assure a business's clients that an insurance company will reimburse their losses if the business fails to deliver contracted services.

License / permit bonds

License / permit bonds offer guarantees a business will perform the contracted work and adhere to state or town regulations. They are often prerequisites for licenses and permits.

What Is Small Business Insurance?

Whether you’re in the retail, construction or financial services industry, most small business owners need small business insurance. Having it can help protect the livelihood you’ve worked so hard to build. The right small business coverage can help cover expensive damage and lawsuits from:

Accidents
Natural disasters
Professional errors
Workers’ comp claims

Types of Small Business Insurance

Small business insurance helps protect your company’s personal property and income. It also helps safeguard you against liability claims.

Additional Small Business Protection

To get the best small business insurance protection, you’ll likely need different insurance products and coverages. With our Business Owner’s Policy (BOP), you’ll get three essential types of coverage combined into one:

General liability insurance helps protect businesses from claims that it caused bodily injuries or property damage to someone else’s belongings. It can also help protect your business from claims of personal injury, like libel or slander.

Business property insurance, also known as commercial property insurance, helps protect your owned or rented physical building and the tools and equipment used to operate your company.

Business income insurance, also known as business interruption coverage, helps replace your lost income if you can’t operate because of covered property damage. This includes damage from a fire, wind or theft.

Growing Your Small Business Coverage

Over time, you may need more coverage to protect your small business. We’re here to help and can get you small business insurance quotes based on the risks you face. Here are some of the different types of coverage we offer:

Workers’ compensation insurance gives your employees benefits if they get a work-related injury or illness. Also known as workers’ comp insurance, it can help pay for an injured worker’s medical expenses, medical treatments, and lost wages. Most states require employers to carry workers’ comp.

Commercial auto insurance helps keep you and your employees safe on the road while driving a company-owned vehicle for business.

Professional liability insurance, also known as errors and omissions insurance, helps protect your company against claims that it made a mistake in the professional services given to a client.

Data breach insurance, which some insurers call cyber liability insurance, helps pay for you to respond to a breach if personally identifiable information gets lost or stolen.

Costs of Small Business Insurance

The cost of insurance for small businesses varies. That’s because every small business is different and faces unique risks. How much does small business insurance cost? That depends on what you need. However, our specialists are here to help you figure out what you should have to protect your business and get you a quote tailored to your needs.

More Information About Small Business Insurance

Why Do I Need Small Business Insurance?

Most states require some form of insurance for small business owners. No matter how careful you are, accidents can happen. When they do, having the right types of coverage can make all the difference

What Does Small Business Insurance Cover?

There’s not a one-size-fits-all small business insurance policy that covers every claim. Many small business owners start with a BOP because it contains liability and property coverage. A BOP can help protect your business from:

Claims that it caused bodily injury or property damage to someone else’s belongings
Damage to the owned or rented building and equipment used to operate
Losing income if you can’t operate because of covered property damage

Can The Hartford Help Me Get Small Business Insurance In My State?

We proudly partner with thousands of small business owners throughout the country. If you’re looking for more information about how to get small business insurance where you live

Do I Need Small Business Insurance for my LLC?

Registering your business as a limited liability company (LLC) doesn’t protect your business from risks. We created our LLC insurance specifically for small business owners. It can help keep you covered from devastating financial losses.

What Insurance Do You Need When Starting a Small Business?

Three essential types of business insurance you may need when starting a small business are:

General liability insurance
Business property insurance
Business income insurance

Our BOP bundles these three types of business insurance together to make it easier for you to protect your company.

Why Small Businesses Can Trust The Hartford

Not all insurance companies offer the same level of service. With us, you’ll find that we’re more than just an ordinary insurance company – we’re a partner. We’re dedicated to small business owners and have been protecting customers for more than 200 years. We can help you find the right type of business insurance for your company.

Our representatives consistently earn some of the industry’s highest ratings and reviews for customer claims. We’ve also been recognized as a World’s Most Ethical Company® 13 times by Ethisphere.**

To find out how we can help protect your business, get a small business quote today.

What Is Small Business Insurance and What Does it Cover?

If you’re looking for the small business insurance definition, we can help. Also known as commercial insurance, small business insurance is designed to safeguard the company you’ve worked so hard to build. It helps protect your business against bodily injury or property damage.

What Is Considered Small Business Insurance?

One of the most common types of business insurance is a Business Owner’s Policy (BOP). It includes coverage from:

General liability insurance
Business income insurance
Commercial property insurance

What Does Small Business Insurance Cover?

Small business insurance can help cover claims that your business hurt someone or damaged another person’s property. It can also help protect your business’ equipment and income.

This type of insurance can help protect your business if:

A customer slips and falls at your business property
An employee accidentally puts a hole in a wall while working at a customer’s home
Your employee falls and gets hurt while making a delivery

What Insurance Do You Need for a Small Business?

Many business owners wonder, “What insurance do you need for a small business?” A BOP is not only convenient, it can also help you save money. In addition to the coverage in a BOP, many small business owners need other types of general liability insurance, including:

Workers’ compensation insurance
Professional liability insurance
Data breach insurance

Learn more about the types of business insurance many small business owners need:

General Liability Insurance

General liability insurance helps protect your business from claims of:

Property damage to someone else’s belongings
Bodily injury to another person while on your business property
Personal injury, like defamation or libel

Business Income Insurance

Business income insurance helps replace your lost income if you can’t operate because of covered property damage. This coverage is also known as business interruption insurance.

Commercial Property Insurance

Commercial property insurance helps protect the owned or rented building and equipment you use to operate your business. It can also help repair or replace business property if a fire, theft or other covered loss damages or destroys it.

Additional Coverages for Small Businesses

You can help protect your small business with other types of business insurance, such as:

Data breach insurance to help pay your costs to respond to a data breach if personally identifiable information gets lost or stolen.
Professional liability insurance, also known as errors and omissions insurance, to help protect your business from lawsuits claiming mistakes were made in the professional services given.
Workers’ compensation insurance to help your employees recover from a work-related injury or illness. Most states require this coverage.
Commercial umbrella insurance to help extend the coverage limits for certain general liability insurance policies.
Commercial auto insurance to help protect you and your employees on the road while driving for business.
Employment practices liability insurance to help cover employment-related claims against your business.
Business insurance to help entrepreneurs protect their home-based businesses. Homeowners insurance may not insure your business assets.

Common Questions About Small Business Insurance

Are Small Businesses Required To Have Insurance?

If you have employees, you’ll need workers’ compensation insurance. Most states may also require:

Commercial auto insurance
Professional liability insurance
Liquor liability insurance

What Does Small Business Insurance Cost?

Small business insurance costs vary depending on the type of company. That’s because every small business is unique. Some factors that determine the cost of your small business insurance include your company’s:

Size
Experience
Industry risk
Payroll

Why Do Small Businesses Need Insurance?

As a small business owner, you may be wondering, “Is it illegal to run a business without insurance?” You should check the laws where you live, because every state has different rules and regulations. If you don’t comply with those laws, your business may face fines and penalties. And in some cases, you can also face criminal charges.

Without insurance to protect your business, you’ll also have to pay for claims out of pocket. Not many small business owners have the resources to cover costly claims.

We Support Small Business Owners

We know there are a lot of insurance companies out there, but not all of them are dedicated to small businesses. We have more than 200 years of experience and a dedicated team of specialists to help small business owners get the coverage they need. From lost income and medical expenses to car accidents, we can help you every step of the way. Get a small business insurance quote today.

Best Small Business Insurance Companies

State Farm is the best overall for small business insurance

We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.

Accidents happen all the time, and business owners need to be protected in case there's an accident in the workplace—especially since the average customer injury insurance claim is for $35,000.1 It’s important for business owners not to leave themselves vulnerable, and to make sure they have the insurance they need to cover all of the risks present in their business. After all, not having the right types of insurance can be the same as not having it at all, leaving businesses with no protection against many types of losses.

We compared more than a dozen of the country’s best insurance companies—as well as several brokers—based on the types of coverage they offer, the industries they serve, their ratings for financial stability, and customer satisfaction to identify those that best meet the needs of small businesses.

Read on to see who has the best small business insurance that meets your needs.

The 7 Best Small Business Insurance Companies of 2022

Best Overall: State Farm
Best for Independent Contractors: Hiscox
Best General Liability Insurance: Nationwide
Best Workers’ Compensation: The Hartford
Best Commercial Property Insurance: Travelers
Best Business Owners Policy: Liberty Mutual
Best Commercial Auto: Progressive Commercial

Best Overall : State Farm

Get a Quote

For the fastest quote experience, call CommercialInsurance.net at 888-605-3691.

Why We Chose It

We chose State Farm as the best overall small business insurance company because it offers multiple types of coverage through a nationwide network of agents. What’s more, State Farm agents are business owners themselves, so they understand the needs of other small business owners.

Pros & Cons

Pros

A nationwide network of agents
Simple general liability offerings available in $1 million increments
Several other types of coverage available, along with other endorsements and add-ons such as in-home business endorsements

Cons

Customer service won’t be consistent with every agent
Many agents can’t write across state lines

Overview

State Farm was established in 1922 by G.J. Mecherle, a retired farmer and insurance salesman. Though best known for auto and home insurance, State Farm has about 100 products including financial services, banking, and commercial insurance. It has an A++ rating for financial stability from AM Best.2

State Farm sells insurance in most states and offers policies designed for each stage of a company’s growth cycle including general liability, professional liability, and other types of coverage that can be added onto policies to suit individual needs. State Farm also offers business insurance that is designed specifically for certain industries such as contractors, professional services, caterers and retailers.

In addition to business coverage, State Farm offers discounts for policyholders who combine certain types of coverage, though discounts vary based on the types of coverage being bundled. The discounts are not for bundling business coverage. However, if you're happy with your State Farm business coverage, you could get home and auto coverage from them and save. Every State Farm agency is independently owned, so every agent understands the unique needs of small business owners—they are business owners themselves.

Best for Independent Contractors : Hiscox

Get a Quote

For the fastest quote experience, call CommercialInsurance.net at 888-486-1756.

Why We Chose It

Hiscox wins the top spot for independent contractors because they have products designed and priced specifically for independent contractors and freelancers.

Pros & Cons

Pros

Huge international insurer
Small business coverage in 49 states and Washington, D.C.
Policies designed for micro-business needs

Cons

Only nine U.S. offices
Parent company is not U.S.-based
Small business coverage not available in Alaska

Overview

Hiscox was started in 1901 as an underwriter in Lloyd’s market. Although the parent company Hiscox Group is based in Bermuda, the U.S. corporate headquarters is in Atlanta, Georgia and operates in nine offices across the country. Hiscox does business in 14 countries and all 50 states, plus the District of Columbia, although it's small business insurance is not available in Alaska.

Hiscox offers a core lineup of business insurance products including commercial general liability, professional liability, business owners’ policies (BOPs), workers’ compensation, cyber liability, commercial auto, and employment practices liability insurance (EPLI). The company also writes all the business insurance policies sold by GEICO.

Hiscox offers standard liability coverage limits up to $2 million, but higher limits are available upon underwriting approval. The company boasts coverage for many industries and policy types. Customized solutions are available for 180+ different industries including salons, fitness instructors, consultants, therapists, janitors, and acupuncturists.

Best General Liability Insurance : Nationwide

Get a Quote

For the fastest quote experience, call CommercialInsurance.net at 888-665-2658.

Why We Chose It

We chose Nationwide as our best general liability provider because the company is a business insurance carrier that focuses on simple, straightforward insurance solutions, which is ideal for businesses with high-risk, general liability needs. Nationwide also received an A++ Superior rating from AM Best for financial stability.3

Pros & Cons

Pros

14 different industry specialties
Also offers investment services
A++ rating from AM Best

Cons

Coverage not available in Alaska or Hawaii

Overview

Nationwide traces its roots back to 1926 when it operated as Farm Bureau Mutual Automobile Insurance Company. The name was changed to Nationwide in 1955 during its efforts to expand coverage to all states from coast to coast. There are agents in every state except Hawaii and Alaska.

In addition to general liability, Nationwide offers many types of business insurance including business property, commercial auto, BOP, workers’ compensation, EPLI, equipment breakdown coverage, and umbrella insurance. The company also has 14 different industry specialties including retailers, professional offices - including medical clinics, food & beverage businesses, and farms & ranches.

Best Workers’ Compensation : The Hartford

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Why We Chose It

We chose The Hartford as our top workers’ compensation provider because of the special benefits it offers employers such as pay-as-you-go plans. These plans drastically lower the chances of over- or under-paying premiums because costs are based on actual payroll instead of projections.

Pros

Second-largest provider of workers’ compensation insurance nationwide
State- and city-specific insurance requirement guides
Pay-as-you-go workers’ comp that reduces the risk of premium discrepancies
Network of over a million healthcare providers to help injured workers

Cons

Unable to file business claims on the app
Cumbersome application process

Overview

The Hartford was founded in 1810 as a fire insurance company. Since then, the company has grown into a Fortune 500 company that has served over a million small business customers. The Hartford, a Connecticut-based company, has an A+ (Superior) rating from AM Best.4

The Hartford offers many types of business insurance including general liability, BOPs, commercial auto, commercial flood, data breach coverage, commercial umbrella, business income, and professional liability coverage. The company also advertises more than 20 industry specialties including arborists, pet groomers, restaurants, printing, and publishing.

In addition, The Hartford offers many other policyholder benefits including:

Access to The Hartford’s Preferred Medical Provider Network with over a million healthcare providers
Prescription drug features
The Nursed Back to Health Program

The Hartford is the second-largest provider of workers’ comp insurance nationwide.5

Best Workers’ Compensation : The Hartford

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Why We Chose It

Pros

Second-largest provider of workers’ compensation insurance nationwide
State- and city-specific insurance requirement guides
Pay-as-you-go workers’ comp that reduces the risk of premium discrepancies
Network of over a million healthcare providers to help injured workers

Cons

Unable to file business claims on the app
Cumbersome application process

Overview

In addition, The Hartford offers many other policyholder benefits including:

Access to The Hartford’s Preferred Medical Provider Network with over a million healthcare providers
Prescription drug features
The Nursed Back to Health Program

The Hartford is the second-largest provider of workers’ comp insurance nationwide.5

Best Commercial Property Insurance : Travelers

Get a Quote

For the fastest quote experience, call CommercialInsurance.net at 888-354-2875.

Why We Chose It

We chose Travelers as our best commercial property insurer because the company has developed extensive experience in the space, having been ranked the top commercial property insurance company in the United States by premiums written for multiple years and narrowly coming in second place in 2021.6

Pros & Cons

Pros

A++ rating from AM Best
Number-two commercial property insurer in the U.S. by premiums written
More than 40 industry specializations

Cons

Pricing and features are highly dependent on industry and operations

Overview

Travelers is another storied company with a history that stretches back to 1864, when one of its founders started writing accident insurance for two-cent premiums. The company as it’s known today was formed in 2004 with the merger of Travelers and St. Paul Companies and has an A++ rating from AM Best.7

Travelers has insurance solutions that are designed to meet the needs of companies in more than 40 industries including transportation, manufacturing, construction, retail, and public entities. However, the company has developed considerable expertise in commercial property insurance.

In fact, the company writes so much property insurance that it ranked as the 2021 number-six writer of commercial property insurance in the United States, according to the Insurance Information Institute.6 The company offers other types of business insurance including commercial auto, cyber liability, surety bonds, and workers’ comp, although prices vary by industry.

Because Travelers operates in the U.S., Canada, and the U.K., the company is well-suited to provide coverage for companies that do business internationally.

Best Business Owners Policy : Liberty Mutual

Get a Quote

For the fastest quote experience, call CommercialInsurance.net at 888-509-2650.

Why We Chose It

We chose Liberty Mutual as the best insurer for BOPs because the company has a fast and easy process with a streamlined business owner's policy available for many different industries that combine coverage in one cost-effective policy.

Pros & Cons

Pros

Quick and easy claim process that can be filed online or through an app
24-hour claims assistance

Cons

Policies serviced by independent agents

Overview

We chose Liberty Mutual as our best provider of business owners policies (BOPs) that combine multiple types of coverage into a single policy protecting against liability, property loss, and loss of income. Liberty Mutual is in a unique position to help large numbers of business owners, regardless of industry.

Liberty Mutual offers business insurance through independent agents across the country. The company has several types of coverage available including commercial auto, equipment breakdown, inland marine, umbrella coverage, and workers’ compensation, as well as 12 industry-specific solutions including construction, public entities, financial institutions, healthcare, real estate, and wholesale. Liberty Mutual also advertises 24-hour claims assistance through its nationwide contractor referral network.

Best Commercial Auto : Progressive Commercial

Get a Quote

For the fastest quote experience, call CommercialInsurance.net at 888-528-4310.

Why We Chose It

We chose Progressive as our best insurer for commercial auto insurance because it is the largest specialist in this space and knows how to handle business auto claims better than anyone.

Pros & Cons

Pros

Discount on commercial auto when combined with general liability or a business owners policy
Top commercial auto insurer in the country
Trucking insurance available in all 50 states

Cons

Discounts aren’t available in all states

Overview

Progressive was founded in 1937 and is the biggest commercial auto insurer in the United States.6

While commercial auto is one of Progressive’s major areas of focus, the company also offers other types of business insurance including general liability, workers’ compensation, BOPs, professional liability, and cyber insurance. Progressive has specially designed insurance solutions for 61 industries and professions including gyms, yoga instructors, auto mechanics, painters, beauty salons, and many more.

Progressive offers a discount on commercial auto coverage when your business has general liability coverage or a BOP in force, even if the general liability or business owners policy is through a different carrier. Business owners can also save up to 15% for paying annual premiums in full upfront.

Frequently Asked Questions

What Insurance Do I Need for My Small Business?

The insurance that you need for your small business depends on what type of business you have and your specific risks. However, almost all businesses need general liability insurance, which protects you in case a customer gets hurt at your place of business.

Some other types of small business insurance that you may need include:

Commercial property insurance if you own or lease property for your business
Workers’ compensation insurance if you have employees
Professional liability, also called errors and omissions (E&O), for professional service providers such as an architect, accountant, consultant, or lawyer
Commercial auto insurance if you use vehicles for business purposes (other than commuting)
Inland marine insurance if you transport inventory or equipment

In addition to these core types of business insurance, there are many other types of coverage that business owners may need to cover risks, such as cyber insurance or employers' professional liability insurance, that are specific to the company or its industry.

What Does Small Business Insurance Cover?

Small business insurance is designed to provide financial protection to a business and its business owners if there’s an accident involving the business’s owner, employees, customers, or property. The average claim for customer injury or property damage is about $35,000. In cases where a claim leads to a lawsuit, a general liability claim can cost $75,000 or more to defend and settle.1

The specific risks covered by small business insurance depend on the types of coverage you buy:

Commercial general liability insurance covers accidents or injuries to your customers or other members of the public at your place of business.
Business property insurance covers damage to your business’s facilities, equipment, or inventory that result from a qualifying event.
Workers’ compensation insurance covers work-related accidents or injuries to employees while they’re on the job.

In addition to these core coverages, professional liability insurance protects small business owners against claims arising from poor guidance that they give to clients. Commercial auto insurance covers damages resulting from a car accident caused by you or one of your employees when using a vehicle for business purposes. Damage to inventory or equipment when it’s in transit is covered by inland marine insurance.

What Is a Business Owners Policy (BOP)?

A business owners policy (BOP) is a policy that combines multiple types of business insurance in a single policy. Most BOPs include commercial general liability and property coverage, as well as small amounts of coverage for endorsements such as inland marine or umbrella coverage. By combining these coverages into a single policy, business owners are usually able to save money on their total premiums.

One important thing for business owners to remember about BOPs is that, while they include multiple types of insurance, each coverage included in a BOP usually has its own limits, deductibles, and exclusions.

What Does Small Business Insurance Exclude?

While small business insurance protects your company against legitimate losses, it doesn’t protect against damages caused by your negligence or fraud. It also may not cover you if you misrepresent the nature of your business or misclassify your employees in order to reduce premiums. Most policies, especially commercial property, also don’t protect business owners from losses resulting from natural disasters like floods, earthquakes, or hurricanes, unless coverage is specially added to protect against these events.

For businesses that have multiple policies or several coverages combined in a BOP, coverage limits aren’t fungible; if a business has a loss for which they have low coverage limits, a business owner can’t borrow additional coverage from other parts of the policy unless their policy explicitly allows it.

Individual coverages also have specific exclusions. For example, while workers’ comp protects employees in the event of workplace accidents, they typically don't cover accidents that result from horseplay. Similarly, commercial auto insurance doesn’t provide coverage when a business vehicle is being used for non-business purposes at the time of an accident. Business interruption insurance will help replace lost revenue for a business in certain circumstances, but may not replace all lost income. Some policies require business owners to pay co-insurance or only replace income for the first three to 18 months of interruption.

What Is the Average Cost of Small Business Insurance?

Small business insurance costs vary widely based on industry, location, and coverage types. However, business owners who own facilities or equipment, have employees, or give professional advice should all expect to pay more each year in order to protect against their specific risks. Costs can also be higher for business owners who choose higher coverage limits, lower deductibles, additional coverages, or extra endorsements.

Methodology

To identify the best small business insurance companies, we looked at over a dozen national and regional insurance companies, as well as several online brokers. We chose not to include brokers on our list because we found multiple cases where business owners can qualify for discounts and other savings, as well as customized coverage for their business, by working directly with carriers.

Business owners need an insurance company that they can partner with as they grow. They need insurance that’s easy to find, buy, and understand. To build our list, we focused on companies that make coverage widely available and that have strong ratings for financial stability and customer satisfaction. We also considered the types of coverage that companies offer and the industries they specialize in.

Get business insurance

Business insurance protects you from the unexpected costs of running a business. Accidents, natural disasters, and lawsuits could run you out of business if you’re not protected with the right insurance.

Pick the type of business insurance you need

The protections you get from choosing a business structure like a limited liability company (LLC) or a corporation typically only protect your personal property from lawsuits, and even that protection is limited.

Business insurance can fill in the gaps to make sure both your personal assets and your business assets are fully protected from unexpected catastrophes.

In some instances, you might be legally required to purchase certain types of business insurance.

The federal government requires every business with employees to have workers’ compensation, unemployment, and disability insurance.

Some states also require additional insurance. Laws requiring insurance vary by state, so visit your state’s website to find out the requirements for your business.

Six common types of business insurance

After you purchase insurance that's required by law, you can find insurance to cover any other business risk. As a general rule, you should insure against things you wouldn’t be able to pay for on your own.

Speak to insurance agents to find out what kinds of coverage makes sense for your business, and compare terms and prices to find the best deal for you. Here are six common kinds of business insurance to look for:

Insurance type	Who it's for	What it does
General liability insurance Insurance type	Any business Who it's for	This coverage protects against financial loss as the result of bodily injury, property damage, medical expenses, libel, slander, defending lawsuits, and settlement bonds or judgments. What it does
Product liability insurance Insurance type	Businesses that manufacture, wholesale, distribute, and retail a product Who it's for	This coverage protects against financial loss as a result of a defective product that causes injury or bodily harm. What it does
Professional liability insurance Insurance type	Businesses that provide services to customers Who it's for	This coverage protects against financial loss as a result of malpractice, errors, and negligence. What it does
Commercial property insurance Insurance type	Businesses with a significant amount of property and physical assets Who it's for	This coverage protects your business against loss and damage of company property due to a wide variety of events such as fire, smoke, wind and hail storms, civil disobedience and vandalism. What it does
Home-based business insurance Insurance type	Businesses that are run out of the owner’s personal home Who it's for	Coverage that’s added to homeowner’s insurance as a rider can offer protection for a small amount of business equipment and liability coverage for third-party injuries. What it does
Business owner’s policy Insurance type	Most small business owners, but especially home-based business owners Who it's for	A business owner’s policy is an insurance package that combines all of the typical coverage options into one bundle. They simplify the insurance buying process and can save you money. What it does

Four steps to buy business insurance

Assess your risks. Think about what kind of accidents, natural disasters, or lawsuits could damage your business. For example, if your business is located in a commercial area that is at risk from seasonal events such as fire or hail storms, commercial property insurance will help protect against loss.
Find a reputable licensed agent. Commercial insurance agents can help you find policies that match your business needs. They receive commissions from insurance companies when they sell policies, so it's important to find a licensed agent that’s interested in your needs as much as his or her own.
Shop around. Prices and benefits can vary significantly. You should compare rates, terms, and benefits for insurance offers from several different agents.
Re-assess every year. As your business grows, so do your liabilities. If you have purchased or replaced equipment or expanded operations, you should contact your insurance agent to discuss changes in your business and how they affect your coverage.

What Insurance Do You Need for a Small Business?

When you’re buying small business insurance, your coverage decisions will depend on your business’s type and size. Here are common coverage types.

General liability insurance gives a business protection against liability claims such as bodily injury and property damage to others.
Commercial property insurance covers the physical property of your small business, such as fire damage or theft.
Workers compensation insurance offers coverage for when an employee becomes ill or injured because of their job. It’s required in most states, but rules on who has to be covered vary.
Commercial auto insurance covers the vehicles you use for business purposes. A personal auto insurance policy generally doesn’t extend to business use of a vehicle.
Errors & omissions (E&O) will pay for liability costs if a customer or client accuses you of making a mistake in your professional services.
Inland marine insurance protects business property that’s being transported over land.
Cyber liability insurance can pay for recovery costs if your computer system and data gets hacked.

What Does Small Business Insurance Cover?

Here’s a closer look at top coverage types for small businesses.

General liability insurance pays for legal costs such as hiring an attorney and any judgments against you and your business. General liability insurance includes coverage for damage to reputation such as slander or libel and copyright infringement.

Liability insurance pays others, not your own business. It’s also known as business liability insurance.

Commercial property insurance covers a number of business items including computers and workstations, desks and chairs, business records, business inventory and supplies. Commercial property insurance can also cover a business’s office and business building.

Commercial property insurance is also called business property insurance.

Workers compensation insurance offers several benefits to employees who are sick or injured because of their jobs. This includes medical care, physical therapy and compensation for lost wages. Death benefits for an employee’s family are available if an employee passes away from a work-related illness or injury.

Businesses buy workers comp insurance for employees and this insurance is required in most states.

Do You Need a Business Owners Policy (BOP)?

If you are a small business owner, you may wish to consider a business owners policy (BOP). A BOP includes:

General liability insurance
Commercial property insurance
Business interruption insurance, which helps you recover lost business income if your business is unable to open because of a problem such as a fire

A BOP is less expensive than buying separate insurance policies for this same coverage. So consider whether a BOP is right for you.

Do You Need Commercial Auto Insurance?

A commercial auto insurance policy is the right way to cover vehicles that you use for business, whether it’s a company car or a commercial truck or van.

If you get into an accident while driving the vehicle for business, your personal insurance policy won’t cover the claim.

What Does Small Business Insurance Not Cover?

There are instances where small business insurance doesn’t offer coverage, such as:

Flood damage to your business. You would need to have a separate commercial flood policy for flood coverage
Fraudulent and intentional acts
Wrongful termination, unless you have an employment practices liability policy

Methodology

We ranked business insurance companies based on complaint data for commercial liability and commercial property insurance in 2020. Complaint data is based on complaints upheld by state insurance departments in every state and collected by the National Association of Insurance Commissioners.

Insurance designed for small business

You’ve taken a big risk by starting your own business. Let us help you protect and grow that business with insurance customized to help meet your needs.

Cover your assets

When it comes to protecting your business, we offer you a full range of options. A local State Farm agent can help you choose the coverages that are right for you.

Commercial auto insurance

Covers the cars, trucks, vans, and other vehicles you use on or traveling between jobsites.

Commercial liability umbrella policies

Provides extra financial protection against costly lawsuits that may exceed your policy limits.

Business owners policies

Also known as BOP insurance, combines both property and liability coverage into one package.

Worker's compensation

Protects your employees against work-related injuries or illness. Requirements for workers’ compensation vary by state.

Surety & fidelity bonds

Guarantees your work for licensing requirements and can also give potential customers added peace of mind.

Builders risk insurance

Helps protect commercial buildings under construction.

Rated “the best overall” insurance company for small business

We’re not ones to brag (okay maybe a little), but Investopedia recognized State Farm insurance as the top choice for small businesses1 like yours. Here’s why:

Agent know-how

Our agents are business owners too. They understand the unique needs of small business owners.

Customizable insurance

We offer an array of coverage options that can be combined into one affordable policy.

Exceptional service

Since 1935, we’ve been here to help small business.

What is business liability insurance?

A general liability insurance policy — also known as business liability insurance — protects businesses from claims that result from normal business operations. Business liability insurance policy for protection from bodily injuries, medical payments, advertising injuries, and more.

GEICO can help small business owners and contractors get the coverage they need with a general liability insurance quote.

What does general liability insurance cover?

This liability insurance protects your small business from claims that occur during your normal business operations, such as:

Property damage
Physical injury
Defense costs
Personal and advertising injury

How much does general liability insurance cost?

The cost of general liability insurance is based on your specific business needs. Your business is unique, and so are the risks. Factors that influence the cost include:

Type of work
Location
Number of employees

GEICO can help you get an insurance policy with the right coverage at a great price. Start your general liability insurance quote now.

Common terms to know when shopping for liability insurance.

Property Damage

Protects you from claims costs if you damage someone else's property.

Medical Payments

Payments for accidents that occur on your premises or because of your operations, such as a customer slipping on a wet floor. This is regardless of who is at fault.

Personal & Advertising Injury

If you're sued for libel and slander, this could provide coverage for those claims.

Who needs liability insurance coverage?

Each business is different, so make sure you're covered for your needs. Examples of businesses that use general liability insurance are:

Artisan contractors
Small business owners
Landscaping companies
IT contractors
Real estate agents
Consulting
Marketing
Janitorial services
And more

Check out our insurance for small business page to learn about small business coverages. If you still need guidance on whether general liability insurance is right for you, we're here to help. Contact our licensed agents with any of your concerns or questions.

Should you get general liability insurance for your LLC?

While an LLC provides some protection from personal liability for members, the protection is not absolute and your business can still be sued. General liability insurance for your LLC helps protect your small business from the consequences of third-party claims for injury or property damage.

Does your company need a different type of liability insurance coverage?

Being properly insured is the best way to protect your company. We're here to help. A few examples of companies that may be better suited to our other business insurance products

Your company provides professional services (e.g., education and training)
You rent or own a storefront
You use vehicles to transport goods, yourself, or employees

Do you need other business liability insurance coverage? GEICO can help.

Business Owners Policy (BOP)

This 2-in-1 policy includes general liability plus protection for your property. It can cover:
Business location, merchandise, store contents, and equipment
Business interruption expenses and loss of income
Cases where someone is hurt on your premises
Example: A fire damages your office. A BOP could cover repairs to your office and help pay your employees' wages while business is interrupted.

Professional Liability Insurance

We often recommend professional liability coverage to go with general liability or a BOP.
This covers certain professional and personal services, in case you're sued for negligence or for the advice you give clients
It's often known as Errors and Omissions Insurance
Example: A client sues a hair stylist for allegedly giving them the wrong cut and color. Professional liability insurance could cover legal defense costs.

Commercial Auto Insurance

A personal auto policy is not enough to cover vehicles used for business. Commercial auto insurance covers:
Business uses that personal auto policies don't include
Liability coverage to protect you
Includes cars, pickup trucks, box trucks, and more
Example: On a job site, a carpenter accidentally backs into the homeowner's car. Commercial auto insurance could cover the damage.

Cyber Liability Insurance

Protects businesses from losses from computer-related attacks, such as malware, phishing, ransomware, or if a laptop with confidential information on it is stolen.

General Liability Insurance: Frequently Asked Questions

How can I manage my policy?
The Geico Insurance Agency makes it easy for you to speak directly with an insurance professional who can help you.

Do you sell other business insurance products?
Yes! Whether you're a small business just getting started or looking for better insurance rates, GEICO can help. Answer a few short questions about your business so we can help narrow down the search with you.

Do you have any information about starting a new business?
Sure, we do! Here are 6 smart tips about starting a new business.

Is there a GEICO local agent near me?

We have GEICO local agents across the country ready to help you with your insurance needs

Is my small business properly covered?

For most small businesses, general liability insurance is recommended. Beyond that, it depends on your unique situation. Common types of business insurance include workers' compensation, commercial auto, and/or professional liability insurance as well.

Choose from a variety of commercial business insurance options

Business insurance protects your small business from financial damages that can result from accidents, property damage, professional errors, workers compensation claims and other situations. Having accurate coverage is critical in minimizing the negative impact of claims against your business.

Types of Business Insurance

From basic protection to specialized coverage, the Progressive Advantage® Business Program offers several types of commercial insurance so you can get the best combination of coverages for each stage of your business’s development.

General Liability

Most small businesses need this coverage. It guards against things like bodily injury, property damage, completed operations and advertising injury that arise from your business. Sometimes people refer to this coverage as "business insurance".

Commercial Auto

You need this coverage if you use your vehicles for business. This can include traveling between job sites, making deliveries or transporting tools and equipment. It provides liability and physical damage protection for your business vehicles and trailers.

Professional Liability

Liability protection for businesses who offer professional services or advice. It protects against claims of professional negligence. It’s also known as Errors and Omissions insurance (E&O).

Cyber Insurance

Protects against electronic threats, such as data breaches and cyber-attacks. Businesses that store or process sensitive data like credit card information should consider this coverage.

Business Owners Policy (BOP)

This coverage packages business liability and property coverage into one policy. It’s a common choice for small businesses with commercial buildings or personal property.

Workers' Compensation

This protects you and your employees. It helps pay for expenses such as medical costs and lost wages related to employees who become injured or ill on the job.

Business insurance cost

In 2020, the national average cost of a new 12-month business insurance policy through the Progressive Advantage® Business Program ranged from $46 a month for professional liability to $86 a month for workers’ compensation.

Your cost is based on a variety of factors including the industry you’re in and the specific types of jobs you do. For example, one landscaping company might only mow lawns, while another offers additional services such as tree trimming. They’re both landscapers, but their exposure to risk is different and will be reflected in their rates.

Discover more factors that influence business insurance rates and what you can do to get the coverage you need at the best price.

Customized coverage

We offer customized coverage that matches your business’s level of exposure to certain risks. A customized policy includes the coverages you need, with limits that match your specific requirements. Customized coverage is flexible, so if your situation changes – or you simply change your mind - you can update your policy any time.

Be wary of “one-size fits all” policies. They can have gaps in coverage that leave you exposed. For example: You might assume general liability covers any type of business liability; it doesn’t. Learn the differences between general liability and professional liability insurance.

We focus on customizing your policy upfront to avoid these types of problems and so you can feel confident you’re getting the right insurance the first time.

Additional business insurance products

Liquor Liability Insurance

Liquor liability insurance is coverage for businesses that make, sell or serve alcoholic beverages. It's also known as dram shop insurance.

Inland Marine Insurance

Inland marine insurance is coverage for moveable property, such as tools, equipment and other goods. It protects items while in transit over land or stored away from your business.

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) protects businesses against claims related to employee discrimination, sexual harassment and wrongful termination.

Rideshare Insurance

Rideshare insurance is intended to fill the gaps between the insurance ridesharing companies, like Uber or Lyft, provide for their drivers and their drivers’ own personal policies.

Commercial Property Insurance

Commercial property insurance protects commercial buildings and the moveable property your business owns and keeps onsite. It’s offered as part of a BOP.

Excess and Surplus Lines Insurance

Excess and surplus lines is a market for high-risk professions who can't get general liability coverage in the admitted market. It’s also known as E&S insurance.

Employee Pet Insurance Benefit

Employee pet insurance is a voluntary benefit that can help cover medical expenses for your employees’ pets.

Health Insurance

Health insurance is a benefit that lets your business offer quality medical care to your employees and their dependents.

Insure your small business

Common questions

What does business insurance cover?

Business insurance isn’t a specific coverage. It’s a term used to describe one or more individual coverages that protect a small business. The range of protection depends on the specific coverages a business carries. For example, “business insurance” can refer to a single coverage, such as general liability, but it can also include many more.

Which coverages do I need?

Each business has unique needs, but nearly all should consider general liability. It’s the most common coverage, protecting businesses against a wide variety of situations involving third-party injuries or property damage (e.g. slip and falls, broken windows).

If you or your employees drive for work-related tasks, you’ll probably need commercial auto insurance. Most states require that you carry workers’ compensation if you have employees.

Not sure what you need? Answer five simple questions to find which coverages you should consider for your small business.

Why do I need business insurance?

You need it to protect against severe financial loss. Without it, your business could be crippled by a single incident. For example, a customer was injured and you’re legally responsible. Without insurance, the medical bills and legal fees could become impossible to afford. Don’t let this happen to you.

Do I need business insurance if I’m a sole proprietor?

Yes. As a matter of fact, sole proprietors are personally responsible for their business’s debts. This means their personal assets, such as bank accounts or property, might be targeted to satisfy an outstanding business debt. Accidents are unavoidable, but the financial impact they can cause is something you should plan for no matter how small your business is.

Can Progressive help me get business insurance in my state?

Yes. Progressive can help you find a variety of business insurance coverages, including general liability, a business owners policy (BOP) and professional liability, in all states except Hawaii. Browse by state.

Let us help you with a business insurance quote

We want you to feel confident and secure with your small business insurance. Here’s just a few of the many reasons you should choose us to help you find the best insurance for your business.

Flexibility

We can help you secure coverage at any stage of your business’s development and offer the flexibility to adjust coverages as your business grows. Our agents will work with you to make sure you’re getting protection that meets both your needs and budget.

Convenience

We offer several ways to get customized business insurance. You can start a quote online, by phone, or through a local agent. Updating your policy is easy, and we can usually activate your request the same day you make it.

Expert Support

As an experienced business insurance provider and the #1 Commercial Auto Insurer in America*, you can be confident in our support. Our team of specially trained, in-house agents can help you every step of the way to make sure you’re getting the best coverage for your business today, and tomorrow.

Why do I need business insurance coverage?

As a business owner, you need business insurance to protect yourself, your employees, your customers, your assets and the future of your company. Think about the high costs associated with worker injuries, lawsuits, temporary business closures and data breaches. Without business insurance, any one of those examples could jeopardize the future of your business. Also, your state may require you to carry certain types of business insurance.

Types of business insurance products

Businessowners policy

A businessowners policy (BOP) combines business liability, commercial property, business income, and equipment breakdown coverages into one cost-effective package for businesses. BOPs can be general in nature, or personalized to meet your business’s industry-specific needs. Standard BOPs include commercial property insurance, business liability insurance, business income insurance, or equipment breakdown insurance.

Get a BOP quote

Business liability

This type of coverage can provide reimbursement for the resulting medical, repair and legal expenses if your business is held liable for injuring someone or damaging their property. For example, if a customer slips and injures themselves on your property, business liability insurance can help pay for any medical costs or lawsuits that may arise from the incident. Such a policy can also be supplemented with additional coverage endorsements—including fire legal liability and employment-related practices liability—based on your business’s unique risks and exposures.

Start your business liability quote

Commercial property

This form of coverage can help protect your business’s building, as well as any commercial property surrounding the building and the contents within. These assets may include fencing, signage, furniture, equipment and inventory. If a covered event—such as a fire, burst pipe, storm damage or vandalism—damages or destroys your business’s building or its contents, commercial property insurance can recoup the cost of rebuilding, repairing or replacing the property. Commercial property insurance policies typically utilize one of the following valuation methods:

Replacement cost coverage pays for the cost of rebuilding, repairing or replacing your business’s property as new (with similar materials and quality), without any deduction for depreciation.
Actual cash value coverage reimburses your business for the cost of replacing the damaged or destroyed property, based on the depreciated value of the building or contents prior to the incident.

Get a commercial property insurance quote

Commercial auto

This type of coverage can provide protection for the vehicles your business uses to conduct its operations—including cars, trucks, vans and more. Commercial auto insurance typically includes three forms of coverage:

Auto liability coverage can cover medical expenses and legal costs in the event that you or an employee causes an accident that injures another person or damages their property.
Collision and comprehensive coverage can recoup the price of repairing your business’s vehicle(s) after an accident or other covered event.
Uninsured and underinsured motorist coverage can help pay for any vehicle damages or injuries that result from an accident caused by a driver who doesn’t carry adequate insurance (if any).

Begin your commercial auto insurance quote

Workers' compensation

In the event that one of your employees experiences an occupational injury or illness, workers’ compensation insurance can cover their associated medical expenses and rehabilitation costs, and—in some cases—recoup a portion of their lost wages from the incident. This form of coverage can also help pay death benefits to an employee’s family if they are killed on the job. For example, if an employee injures themselves while operating workplace machinery at your business, workers’ compensation insurance could cover their resulting hospital bills and physical therapy costs. This coverage is required in most states, although specific policy standards vary.

Business income

This coverage can help you cover payroll, pay for relocation expenses and replace lost income when a covered loss forces your business to close temporarily.

Crime insurance

This coverage helps protects your business against, burglary, robbery, forgery, computer fraud, employee dishonesty and other crimes.

Employment practices liability

This coverage can help protect your business from employee lawsuits resulting in alleged discrimination, wrongful termination, harassment or other employment-related issues.

Cyber liability

This type of coverage can help your business recoup expenses associated with a cyberattack or data breach. These costs may include legal fees that result from the breach, expenses related to informing customers of the incident and investigating the cause of attack, and the cost of recovering lost data or repairing damaged technology systems.

Errors and omissions (E&O)

Errors and omissions insurance is a type of liability coverage that protects your business against client lawsuits caused by alleged negligent acts, errors or omissions. E&O insurance typically cover you, your employees and your subcontractors.

Equipment breakdown

This coverage helps protect you against equipment failures, including mechanical malfunctions, power surges and operator error, and any associated losses.

Umbrella insurance

Especially useful in high-loss situations, an umbrella policy can act as an added layer of protection to your business’s liability policies. Such a policy can provide coverage when the cost of a claim exceeds your policy’s limit of liability. For example, if your business receives a $1.5 million general liability claim after a customer injures themselves on your property, but your general liability policy limit is only $1 million, an umbrella policy could help cover the remaining $500,000.

Inland marine

This coverage helps protect your property in transit, as well as fine artwork and computer equipment and data.

Accounts receivable

This coverage helps protect your business against losses caused by the inability to collect payment from a customer, as well as damaged accounts receivable records.

Builder's risk

This coverage helps protect your construction projects throughout every phase, from groundbreaking to ribbon cutting.

Why choose Nationwide as your business insurance company?

Strength and stability

We’re a Fortune 100 company with an A+ from A.M. Best, an A1 from Moody’s and an A+ from Standard & Poor’s.

More than 90 years of business experience

Our first farm policy was issued in 1926 as the Farm Bureau Automobile Insurance Company.

Friendly and dedicated business agents

Thousands of agents across the nation are ready to find the right coverage for you and your business.

Loss control & risk management

Our customers get loss control tools and resources, including a Loss Control Services team who can review your operations, procedures and programs.

Business Solutions Center

Nationwide provides free resources and tools on a variety of important topics to help small business owners start, grow and run their businesses.

We serve companies of all sizes

We are open and ready, serving over half a million small businesses like yours across the nation.

We have your small business covered

Small businesses drive the American economy. We understand that small business owners like you work hard every day, taking risks to better serve your customers, employ more people and strive to be successful. As a leading small business insurer, serving over half a million businesses like yours, we can help you build and protect your business by providing customized insurance solutions to support you and your budget. You can rely on our financial strength and stability to be there when you need us most.

Allstate understands that no two businesses are exactly alike, which is why we offer business insurance packages tailored for many types of businesses. A typical business owners policy (BOP) includes multiple coverages that help protect businesses and their owners in a number of situations. Each BOP, which can be customized to fit your needs, combines property insurance, liability coverage and more into one convenient policy.

Property insurance

Provides valuable protection for property owned by your business.

Liability insurance

Helps cover legal expenses due to customer injuries and other liability claims.

Business interruption insurance

Helps cover lost income and extra expenses resulting from a covered claim.

Equipment breakdown coverage

Helps pay to repair equipment damaged by a power surge or other covered risk.

Get business insurance designed for you.

Each industry brings its own set of risks and insurance needs, which is why it's a good idea to have business insurance coverage tailored to fit your needs. Select your industry from the list below to learn more about how you can help protect your small business with custom coverage from Allstate.

Explore custom business owner protection

Business insurance doesn't cover everything

Business owners insurance helps protect your business from sudden and accidental losses. However, not all losses are covered by a standard business insurance policy.

Flood
Earthquakes
Water backup

Floods, earthquakes and water/sewer backups are typically excluded from business owners insurance. If you want to purchase additional insurance to help cover damage from these events, talk to your Allstate agent to learn what options are available.

Need more protection?

Below are just a few of the optional coverages you may be able to purchase as add-ons to your Allstate Business Insurance policy or as a separate policy. Coverages may not be available in all states and limits may vary.

Available as add-ons to a policy

Other types of protection you can purchase	Look under "Coverage" on your policy declarations
Outdoor signs	Covers outdoor signs your business owns and has installed at its location.
Data compromise and identity theft protection	Data compromise protection provides resources to help you comply with breach notification laws and assists with defense and settlement costs if you are sued following a breach of personal information. Identity recovery protection provides a dedicated help line for support and case management for identity theft victims.
Employee dishonesty	Helps cover damages resulting from dishonest acts committed by your employees.
Home-based business	Protects businesses that are run out of your home and gives coverages for off-premises activities, as well as credit card coverage.
Cyber attacks	Helps cover losses related to a cyber attack on your business's computer system, such as damage to your data and system, cyber extortion and computer fraud.
Shield endorsements	Provide a set of valuable coverages tailored to your type of business. For example, a shield endorsement can help protect equipment that is specific to your business, such as increased coverage for valuable records for doctors and dentists.
Inland marine insurance	Helps cover business property while it's being transported by truck or train. It can provide greater protection for high-value items or property that's not covered by a standard business insurance policy.

Separate policies you can purchase

Other types of insurance you can purchase	Look for these policies in a separate mailing
Flood insurance	Your Allstate agent can help you purchase a separate policy through the National Flood Insurance Program.
Umbrella policy	If someone sues you over an accident, and the settlement exceeds the liability limits on your business owners insurance policy and/or business auto policy, this coverage can help cover the additional expenses.
Commercial auto	If your business vehicle is damaged in an accident, or an employee is found liable for a car accident while on the job, commercial auto insurance can help cover related expenses.

Get the small business insurance you need to protect your company or side hustle. Our coverage can help pay for:

Property damage

If you damage someone’s property or your business property needs to be replaced or repaired.

Injuries

If someone is injured and you or your business is ruled responsible.

Lost wages

If you or an employee experience a workplace injury.

Defense costs

If you’re forced to go to court to defend your small business.

Vehicle accidents

If someone gets hurt or property is damaged while you’re driving for work.

Business errors

If you or an employee makes a mistake that causes you to lose money.

Everything you need to know about business insurance:

What is business insurance?

Business insurance protects you from expenses that can take you by surprise after an accident or mistake involving your business property, your employees or your customers. It’s sometimes called commercial insurance.

The idea of small business insurance is simple:

You pay a set amount for your coverage (this is known in the industry as an insurance premium).
In return, you may be able to avoid paying a much larger amount after an accident or mistake.

What are the different types of business insurance?

Business insurance typically involves a package of different types of coverage — what the insurance industry calls policies.

For example, someone could slip where you are working and claim the injury is your fault. In that case, you’ll be glad you have general liability insurance to help pay for medical costs so you don’t have to pay out of pocket.

General liability insurance is typically the first kind of insurance bought by business owners as it also helps your business cover the costs if you or an employee accidentally damage someone’s property.

But general liability is just one type of business insurance coverage.

You might need to expand your insurance package to protect yourself from financial losses. For example:

Commercial property can help protect almost all of the physical items you need to do business. It can pay for replacement costs for your business equipment, goods, inventory and repairs to your building (if you own it) up to your policy limit.

Business owner’s policy (commonly known as BOP insurance) combines general liability insurance and commercial property insurance into one package that includes all the coverage available in those two types of insurance.

A BOP is a comprehensive way to protect your business from unexpected expenses related to property damage, medical payments and lawsuits.

Workers’ compensation insurance covers workplace injuries.

If an employee gets hurt on the job, it can pay for medical expenses and help cover lost wages. You can also cover yourself if you opt for business owner’s coverage.

It’s almost always required when you have employees.

Commercial auto insurance is for business owners who own or drive vehicles. It can help pay for damages if you or an employee are involved in an auto accident while working or your work vehicle is damaged.

Professional liability insurance can help protect you from claims of work mistakes or negligence. This coverage is also known as errors and omissions (E&O) insurance.

We know it can be difficult to sort out what coverage you need for your business. That’s why we developed a super fast online business insurance quote process.

You can review our customized recommendations and adjust them to fit your small business preferences in less than 10 minutes.

How much does business insurance cost?

Small business insurance costs can vary tremendously. That makes sense, since a yoga teacher needs different coverage than a handyman or a financial advisor.

For some low-risk professionals, like personal trainers, prices start at just $11 per month, while the cost of small business insurance for roofers or welders who work on dangerous projects can be much higher.

While it can be difficult to give a precise small business insurance costs estimate (the best way to get the information is to get a quote for your business), we can tell you about some of the factors that help determine what your small business insurance will cost.

Factor 1: Number of employees

Your payroll and the number of employees at your business could impact the amount you pay for insurance, especially with workers’ compensation coverage.

Factor 2: Location, location location

Where you work and the number of locations where you work is a factor in your exposure to risks and how much you will pay for insurance protection.

A contractor in a highly regulated state like California might pay more for insurance than a contractor in Texas, even if they work on similar projects. That applies to almost every industry, including food service, retail and professional services.

Factor 3: What’s your industry?

If you work in a profession that involves heavy equipment, expensive property or dangerous environments, your general business insurance quote will probably be higher than if you’re in a profession that involves sitting quietly at a desk.

Construction professionals pay a median of $70 per month for a business insurance policy. Cleaning professionals pay $43 per month and fitness professionals pay a median of $16.50 per month for a business insurance policy.

Factor 4: Scope of operations

If you’re a fitness instructor who only teaches privately in people’s homes your general liability insurance is probably going to cost less than if you offer public classes, as working with the public will always increase your risk — and therefore the cost of your business insurance.

Factor 5: Experience

Some people have spent years building up professional expertise before they ever start their own business. That can mean that their risk is lower than newer professionals. That risk is often reflected in the price they’ll pay for their coverage.

Why is business insurance important?

Business insurance is crucial for protecting your business from financial losses.

Without insurance, an accident or mistake could keep you from reaching your goals and threaten the survival of your business.

That’s a scary thought, but it’s a very real factor for many businesses if you consider the average cost of a liability lawsuit can easily reach $50,000.

Business insurance gives you the protection you need to confidently focus on growing your business and serving your customers.

We’re here to help you at every step.

How can NEXT help you get the right coverage?

We’re dedicated to helping small businesses and self-employed workers find the affordable coverage you need to stay protected, meet legal requirements and satisfy their customers.

Whether you’re an accountant, construction worker, baker or candlemaker, we’ll help you thrive by providing coverage that protects everything you do.

Since we only work with small businesses and the self-employed, we can customize your commercial insurance package to fit your business. Currently, Next serves more than 130,000 small business customers.

NEXT also offers customized business insurance package tailored to different business structures:

How do I get business insurance?

You can purchase the business insurance you need online in less than 10 minutes with Next.

Here’s how the process works:

Start an instant quote. We’ll ask you some basic questions about your business and operations, including:

Your industry
Where you do business
How many years you have owned the business
Number of employees
Expected annual revenue
Recent insurance and claims history

We will use the information you share to create a customized business insurance quote.

If you like what you see, you can adjust the package limits to fit your preferences and make your purchase.

Your insurance will begin immediately after payment, and you’ll have access to your certificate of insurance. The self-service tools also allow you to pay premiums, add an additional insured and file claims.

The streamlined process, which can be completed without needing to talk to an agent, makes it possible to purchase insurance online in a matter of minutes.

And if you do have questions, our licensed, U.S.-based insurance professionals are ready with the answers.

Small business insurance

Compare small business insurance for sole traders, partnerships or small, limited companies and get the cover you need

What is small business insurance?

Business insurance covers you for financial losses if something unexpected happens while running your business, like legal claims, theft or damage to property and stock.

Even small businesses need business insurance. In fact, losses to a small business could be even more disastrous than to a larger one that could better absorb any losses.

Even if you’re a sole trader and your business is only you, it’s a good idea to get some quotes to find the right cover for your company.

Why do I need small business insurance?

If you have employees, you're legally required to have employer's liability cover to protect your business against employee compensation claims.

But business insurance can also help cover other damages or loss of earnings, which can be vital for a small company or start up.

What insurance should a small business have?

Here are some elements of cover that could be included in your small business insurance policy:

Employer’s liability – a legal requirement that covers compensation claims if an employee is ill or injured because of their work for you
Motor insurance – this is also a legal requirement if you have any company vehicles
Public liability – this can cover claims from customers if they’re injured or their property is damaged because of your business
Professional indemnity – an aspect of cover that protects you against claims for poor workmanship or bad advice
Business interruption – if your company is unable to run due to an unexpected incident like a fire or flood (disruption due to Covid is not covered)
Equipment and stock insurance – you’ll be compensated if your stock or equipment are stolen or damaged
Buildings and contents insurance – to insure your business’ premises against risks like fire, flooding and thefts

Can I get insurance that’s specific to my business type?

The risks you'll need insurance for depend on what type of business you run.

It’s important to assess your business for its unique needs so you can make sure you’re getting the right type of cover.

When you get business insurance quotes you’ll be asked questions about the nature of your business and what you want covered, so the quotes you get will be suitable for you.

But no matter what business you have, you’ll need employer’s liability cover if you have any employees.

Insurance for different types of small business

A few types of small business insurance include:

Market trader’s insurance

You’ll need to think about the products you want to sell and the kind of business insurance and other certification you might need.

For example, if you sell homemade food or drinks, you’d need to register your kitchen with the environmental health department and get a food hygiene certificate, or your insurance might not be valid.

You might want your market trader’s insurance to cover public and product liability.

Some cover for weather damage might also come in handy to protect your stall.

Can you get market trader’s van insurance?

In order to make sure your van is covered for business use (as well as the goods the van is carrying), you’ll need to check it’s included in your business vehicle insurance policy, or look at specialist insurance providers.

Luckily, there are a couple of companies offering van insurance specifically for market traders, so you can compare different options and make the right decision for you.

Shop insurance

Shops can be threatened by many perils, from theft to flooding, which makes business insurance essential.

You’re likely to need public liability and cover for the products you sell. Buildings insurance to protect your premises could be wise too, if you own the shop.

Online shop insurance

Whether you're a small one-person band working via eBay or Etsy or run an international e-commerce company, you can get cover tailored to your activities.

Online shop insurance covers many of the same issues as physical shop insurance – your stock, your employees and claims from your customers. If you have a home-based business you might have some cover from your home insurance – check your policy to find out.

Restaurants and cafes

You’ll most likely want public liability insurance to protect you from potential claims arising from any spills or trips.

Make sure you have enough cover to protect your stock if it’s stolen or damaged, but also that any expensive equipment – like coffee makers or other kitchen gadgets – is covered.

Agencies or other office work

As well as the essential employer’s liability cover, you’ll need to insure your office equipment, and it could also be worth getting professional indemnity cover too.

Painters and decorators

With so many tools of the trade, you’ll want to make sure your business insurance covers all your equipment and supplies.

You’ll need commercial van insurance for any company vehicles as well.

How much will small business insurance cost?

This depends on a few things, such as:

Size of your business
smaller businesses usually have less stock and equipment to cover which could mean cheaper premiums
Type of business
some businesses have a higher risk of things going wrong, meaning you’d be more likely to claim and so your cover would cost more
Number of employees
the more employees you have, the more chance that someone could make a claim against you
Level of cover
insuring expensive assets or extensive cover will cost more

Do I still need business insurance if I work from home?

It's probably worth considering home business insurance if you have company equipment or stock.

If customers or employees visit your home, consider public liability cover and employers liability cover respectively. Professional indemnity insurance and cover for any company vehicles could also come in handy.

What do I need to get a small business insurance quote?

To compare small business insurance quotes with us, you’ll need to tell us about:

Your specific business and trade
The age of the business
Projected turnover
If you’re a sole trader, partnership or limited company
If you employ any staff, or labour-only subcontractors

Small Business Insurance

We guarantee to beat your new insurance quote or renewal premium from any other insurer.

New customers only. Cover on an equivalent basis to ours. Qualifying criteria apply.

To redeem and for full Terms & Conditions, click here.

0% APR on your monthly Direct Debit payments in the first year.
Over 18s, subject to eligibility.
Unlimited policy changes – no admin fees to make amends.
Tailor your insurance so you only pay for what you need.

What is business insurance?

Business insurance covers your business from unexpected losses e.g. if your equipment is stolen or you make a mistake and your clients decide to sue. As a business owner, self-employed consultant or a freelancer you need to factor certain risks in your day-to-day work. Depending on your profession you may need public liability insurance, professional indemnity insurance, contents insurance or other types of cover. We offer business insurance for hundreds of different trades. Use our quote tool to check how we can help and cover your company.

Why choose Direct Line for your business insurance?

You can pick from a range of cover options to get a bespoke policy for your business.

Public liability
Professional Indemnity
Employers' liability
Buildings cover
Contents and stock
Business interruption
Theft of takings
Cyber cover
Legal expenses
Personal accident

Plus, additional covers for manual trades:

Tools and business equipment
Own plant
Hired in plant
Contract works

Do I need business insurance?

The type of business insurance you need depends on many factors e.g. the activities your company undertakes, any previous claims, the size of your company and if you aren't working alone you may need employers liability insurance. It doesn't matter if you work from home, in a busy office, sell products online or offer your services face-to-face, there are risks associated with every type of business. Mistakes can happen, equipment might get damaged and clients can accuse you of negligence.

Small businesses often aren't prepared for large, unexpected expenses due to a claim, so it's important to have the right insurance in place. If you're self-employed and something goes wrong, you'll be the one responsible for footing the bill.

At Direct Line, we can cover the majority of risks associated with your business. So, instead of worrying about what might go wrong, you can concentrate on building your empire.

We offer insurance for a wide range of businesses, including:

Your cover options

Add any of the following cover options to your Small Business policy and create commercial insurance that fits your business needs. These covers are subject to policy conditions and limits.

Public and product liability

Public liability insurance covers you if you cause injury to a member of the public or accidentally damage someone’s property. An example of this could include a customer slipping on a wet floor in your shop or office and hurting themselves, or you causing damage while carrying out building works on a client's house.

This insurance also covers you if a customer or member of the public becomes ill or suffers an injury as a result of a product you have supplied. For example, if the heel snaps off a shoe someone has bought from you, causing them to fall over, or if a cupcake you sell at an event makes someone sick.

If the people in question pursued legal action against you, public and product liability insurance would cover the costs you are liable to pay. We can offer cover from £1 million to £10 million.

Professional indemnity

Professional indemnity is useful if your business offers a service or requires you to give advice to clients. If you make a professional error or give advice that is deemed negligent, you could be taken to court.

Professional indemnity insurance covers any legal and compensation costs you are required to pay. Clients will often ask to see proof of professional indemnity insurance before agreeing to work with a new contractor.

Employers liability

Employers' liability insurance is a legal requirement if you have employees. There are a couple of exceptions to this rule, which you can read more about here.

We cover you for £10 million, as standard. This covers the legal and compensation costs you are required to pay if an employee gets injured or becomes ill because of the work they do for you.

Buildings cover

If there is an insured event such as flood or fire at your work premises, buildings insurance will cover the costs of repairing the damage, helping you get back up and running.

Equipment breakdown cover (for items forming part of the building) is included as standard. This would cover the costs of replacing or repairing things like your broken boiler and fire/burglar alarms, as long as the damage is not due to wear and tear.

Contents and stock

Contents and stock cover is essential for businesses that supply goods or rely on specific equipment to run their business.

A seamstress would not be able to work without a sewing machine, a web designer would not be able to code without a computer and you may not be able to run your business without your trusty tablet.

Meanwhile, there will be other more general items that you might rely on for your business, like your office furniture or your shop tills. Insure your business contents so that if they're damaged by an insured event, such as fire or theft, your business keeps going.

If you sell goods, you'll want to insure your stock, whether that's raw materials or the finished article. If your goods are damaged or stolen, what have you got to sell?

Our different cover options allow you to insure your business equipment and stock at your premises, when you're on the move, or both. Whether you work at home, at fairs, in shared workspaces or visit a lot of clients, we've got you covered. And when you insure stock at your premises or home, you'll also get an extra 25% of stock covered for two months of your choice as standard, ideal for your busiest periods.

And now with Business Tech Essentials, if your essential tech is stolen or damaged, we'll replace it within 24 hours from claim approval.

When you cover your electrical items and tech you get Business Tech Essentials. Which means if your essential tech - like laptops, mobiles or tablets - are stolen or damaged we'll replace them within 24 hours of claim approval.

Cover & claim limits apply. Mon – Fri 8am – 6pm, except Bank holidays.

Business interruption

Depending on the type of business you run, you might work from home, in an office, at your shop, a client’s premises or a shared working space. If your working premises became unusable due to an insured event like a fire or flood, business interruption will cover the costs of relocating until it’s fixed. It can also cover you for any lost turnover during this time if you’ve insured your premises or business property with us.

If your main supplier or customer suffers damage to their premises and can’t trade, we’ll cover you for the loss of business you’ll suffer. Equally, if a market or fair that you regularly attend suffers a fire, we’ll cover the lost turnover for the time you can’t trade there. Business interruption will also cover you if key equipment that you use to run your business, like a laptop, is damaged or stolen, meaning you can’t trade.

Our business interruption cover can insure you if you or one of your key employees becomes seriously disabled and is unable to continue work. We will cover the incurred costs, up to £25,000, to minimise any interruption to the business.

Theft of takings

Theft of Takings covers cash or cheques stolen from you in transit, from a safe or on you while you're working at other premises, such as your clients' homes. Maximum limits apply.

Cyber cover

If you hold sensitive customer data, process payments online or just want peace of mind, Cyber cover should be considered. Because cyber criminals can be clever. Catching you off-guard and tricking you in to doing something you shouldn't, like opening an attachment in a fake email, or finding a way through your cyber-security. If this happens and they get their hands on your data or access to your bank account, the impact on your business could be devastating.

But, with our Cyber cover, you can call the experts, 24/7. They'll be on it, helping you to stay in business and recover in three ways following a cyber incident:

Recover financially

Covering loss of business income

Covering recovery costs, like fixing damage to your computer systems or data restoration

Covering fines (where insurable by law) and compensation costs following a data breach

Recover your reputation

You get access to public relations and crisis management experts to minimise damage to your brand and business.

Recover your systems and help prevent future incidents

Technical experts will help fix your IT issues and provide advice on how to prevent future cyber incidents.

Legal expenses

Pays the legal costs of providing specialist lawyers and taking action against many common legal problems, for instance disputes with suppliers or clients.

Tools and business equipment

We know how important tools and equipment are for tradespeople. So, when it comes to tools insurance, we've nailed it.

And now, you'll get a fast-upfront payment of up to £1,500 (after a few checks) to help you replace your essential tools or business equipment if they're stolen or damaged, with Tools Essentials.

Tools and Business Equipment cover

With this you're covered if they're damaged or stolen from:

your vehicle during the day if the vehicle is securely locked

a locked building, like your garage or home, anytime of day or night.

Policy limits and excesses apply.

With the Overnight Tools optional add-on (for an extra premium)

You're covered for theft of tools when they're locked in your vehicle overnight that's parked on your drive, the street or if you're working away.

Available on new policies only. Tools removed when the vehicle is not being used for business purposes for more than five consecutive days. Cover excludes electrical items such as laptops, cameras, mobile phones, removable satellite navigation systems, and handheld survey equipment. Cover limits and variable claim excesses apply.

And you get Tools Essentials with both

To help you replace your essential tools or equipment quickly, if they're stolen or damaged, so you can get back to work. You contact us as soon as you can between 8am and 6pm, Monday to Friday (excluding Bank Holiday) and after a few checks, we transfer up to £1,500 to you, within 24 hours.

Claims and policy limits apply. Crime reference or proof of damage and proof of ownership needed.

What we cover

We cover power tools such as drills, hammers, screwdrivers, chisels, spanners, saws, pliers, trowels and blow torches. And equipment like ladders, steps, cleaning supplies, lawnmowers, paint trays, brushes, workbenches and spirit levels.

Own plant

Own plant covers larger items of machinery owned by the business, such as cement mixers, diggers, mini-diggers, dumpers, excavators, generators, trailers and temporary site huts and caravans. This does not include regular items in your toolkit, like a hammer.

We can cover this machinery for theft and damage due to an insured event e.g. fire. We do not cover machinery that has been damaged due to wear and tear.

Cover limits:

Up to 5 workers – £75,000

Up to 10 workers – £100,000

Up to 15 workers – £100,000

There is a single article limit of £50,000.

Excess per claim - £250

Hired in plant

Hired in plant refers to machinery that you have hired from a third party, either for a short period of time or on permanent hire. The types of machinery we cover include: cement mixers, diggers, mini-diggers, dumpers, excavators, generators, trailers and temporary site huts and caravans.

If something happens to the machinery while it is on hire and being used by your business, and the incident is covered by an insured event, e.g. a fire or theft, we can cover the cost of replacing it.

Cover limits:

Up to 5 workers – £75,000

Up to 10 workers – £100,000

Up to 15 workers – £100,000

There is a single article limit of £50,000.

Excess per claim - £250

Contract works

This covers work that is in progress that is damaged by an insured event, such as a fire, flood, vandalism or theft. We can cover the costs required to repair or redo the work.

For example, if you're a builder working on a house and a fire destroys part of the house five months into a six-month contract, we can help you to complete the contract by:

covering the costs required to purchase the materials needed to finish the job

covering the costs required to rebuild the parts destroyed by fire

covering any labour costs to repair the damage

Cover limits:

Contract value (based on the maximum value for any one contract anywhere within the UK)

Up to 5 workers – £750,000

Up to 10 workers – £1,000,000

Up to 15 workers – £1,000,000

Turnover limit - £1,500,000

Excess per claim - £500

Personal accident

Personal accident cover provides payment if anyone in your business between the ages 16-75 is unable to work because they've been injured in an accident, whether in a business or personal capacity.

We'll pay a lump sum of £50,000 if there is an accidental death, accidental loss of limbs or sight, or if someone in your business becomes permanently disabled following an accident.

If someone in your business is unable to work due to a temporary injury, then after 7 days we'll pay their normal net weekly earnings up to £500 for up to 104 weeks.

You can choose Personal Accident as an add-on once you've completed your quote.

What business insurance do I need?

Different businesses require different types of insurance, that's why we let you pick and choose the covers that go into your policy. So, whether you're a retailer or a dog groomer, an IT consultant or a photographer, you can choose the cover that's just right for your business.

You can include any of the following cover types in your small business insurance policy:

Public liability insurance
Product liability insurance
Professional indemnity insurance
Employers' liability insurance
Buildings cover
Contents and stock cover
Theft of takings
Business interruption
Cyber insurance
Legal expenses

How much does it cost to insure a small business?

Different businesses will need different levels of cover, so the cost of insuring a business will differ. We let you design your own Small Business Insurance, so you're in control of what aspects of your business you insure and how much you pay.

The cost of your business insurance quotes will be affected by: the size of your business, number of employees, type of trade and your history of insurance claims.

Is business insurance required by law?

In most cases, business insurance is optional, but some clients and companies may require proof of insurance before agreeing to work with you.

Event organisers, for example, may need to see proof of public liability insurance before letting you trade at their craft fair. A business professional may require you to show proof of professional indemnity insurance before hiring you as a consultant.

If you hire employees, you are legally required to take out at least £5 million in employers' liability insurance. To understand your legal responsibilities and what the exceptions are, read more about employers' liability here.

What are the different types of micro business?

A micro business is defined as an enterprise that employs nine people or fewer. As of 2017, micro businesses count for 96% of the UK's business landscape and, as you might expect, there are many different types of micro business.

What if my trade is not mentioned on the online quote tool?

If you can't find your trade using our online tool then you can chat to us online or call us on 0345 301 5066 and we'll see if we can provide cover for your trade.

What do I do if I have multiple trades?

Our online quote tool gives you the option to enter all your trades so that we have a clear idea of what type of cover you might need. It's important that we know everything that you do.

If you don't include something you do as a trade, then we might not be able to cover any claims. You have a duty to make a fair presentation of your business at all times

How long is a business insurance quote valid for?

Your quote is valid for up to 30 days from the day you receive it.

Small Business Insurance

Standard and specialist business insurance solutions for SME's.

Our Products & Services

We can support you with a tailorable programme of risk management advice and insurance.

Builders Insurance

Contractors Insurance

Professional Indemnity

Public Liability Insurance

Shop and General Retail

Specialist Solutions

Tradesman

What is small business insurance?

Small business insurance protects you and your business against unexpected costs, like lawsuits, fires, or theft. If you run a small business or a start-up, you might not have the same resources as bigger companies – so if something goes wrong and you face unexpected costs, it could hit you much harder. That’s why insurance is so important – it makes sure that whatever happens in the future, you’ve got an insurer who has your back.

Plenty of insurers offer deals specially tailored to people who run small businesses and start-ups. Some forms of business insurance are legally required, and others are purely optional – but you never know what might happen in the future, so it’s a good idea to make sure you have the right level of cover.

Do I need business insurance for my small business or start-up?

There are some types of insurance that every business needs to have. If your small business or start-up has any employees who aren’t immediate family members, then you’re legally required to have employers’ liability insurance in place – if you don’t, you could be fined thousands of pounds for every day you’re not insured. Any vehicles you use for your business need to be fully insured by law as well.

But there are plenty of other kinds of insurance you might want to take out as well. You want your small business to grow and succeed – and the right insurance can help. There are plenty of problems small businesses might face that can be hard to predict – but with insurance, one unfortunate accident doesn’t have to sink your business.

What cover can I get for my small business?

There are plenty of different types of insurance available for small businesses, and odds are that you’ll need at least a few of these to keep your business safe. Here’s some of what’s on offer:

Employers’ liability

If you have any employees, you must have employers’ liability insurance – it’s the law. This covers you for any costs you might face if an employee is injured or becomes ill as a result of the work they do for you

Public liability

Public liability is useful if your business involves interacting with members of the public. It keeps you covered in case any third party is injured because of your work, or if you damage someone’s property

Professional indemnity insurance

You’re likely to need professional indemnity insurance if your business involves giving advice or professional services to clients. It protects you against claims if a client isn’t happy with your work

Product liability

If your business sells products—whether they’re manufactured by you or someone else—it’s important to take out product liability cover. This protects you if the products you sell harm one of your customers

Business Building

If you have a business premises, or even if you work from home, this keeps you protected against damage to your building – whether that’s from fire, floods, burst water pipes, or deliberate vandalism

Business contents

It’s not just the structure of your business premises that needs protecting – with contents insurance, you will also be insured against damage to your office furniture, IT systems, tools, or machinery

Stock cover

Plenty of businesses leave stock items on their premises overnight – and no matter how secure it is, there’s still the risk of theft or damage. With stock cover, you’ll be reimbursed for any goods you lose

Business motor

Any vehicles you use for work must be fully insured – but ordinary car insurance doesn’t always include business use. You’ll need business motor insurance to keep your car or van covered and legal to drive.

Do I need small business insurance if I work from home?

Even if you work from home, it’s still worth thinking about business insurance. If you run your business from a home office, certain office equipment—like your work phone, printer, or office furniture—might not be included in a standard home insurance policy. If you have a home workshop, it’s important that any tools and equipment are covered too. That way you’ll be compensated if they’re damaged or stolen.

You can also benefit from many of the standard business insurance policies, such as professional indemnity, stock, and motor cover. You’ll also still be legally required to have employers’ liability cover if you employ others.

How much does small business insurance cost?

The cost of small business insurance is different for every business – it all depends on what you do and how risky it is. Here are some of the factors that determine the price of cover:

The nature of your business

Some lines of work are riskier than others. If you work with heavy machinery or sensitive information, for instance, you’ll probably have to pay more

How big your business is

Small businesses come in plenty of different sizes – but the more employees you have, the more you’re likely to be charged for cover

Where your business is based

If your business is based in a riskier area – one that’s prone to flooding, or has a high crime rate – your premiums could go up

Compare small business insurance

Comparing small business insurance quotes with MoneySuperMarket and our preferred partner Simply Business is the easiest way to find an affordable deal on cover. Here’s how it works:

Tell us about your business

Let us know about your business and what it does, and we'll find deals tailored to your requirements

Compare deals

You'll be able to compare your offers by cost, level of protection and any extras that are available

Choose the one you like

Once you've found the right deal for you, just click through to the provider to finalise your purchase

Business Insurance

Insurance is an important consideration for any UK-based small business, whether you run a busy consultancy firm, local architect office or hair and beauty salon. Buying the right policy allows you to focus on what you do best, while we look after your everyday risks. Get a quote tailored to your workplace needs in minutes with Hiscox.

Why choose Hiscox to protect your business?

Flexible cover from £9.80 a month*Our small business insurance quotes start at £9.80 per month and we’ll work with you to find tailored cover

*Figures based on an average of at least 10% of our customer base between October 2020 and October 2021

Business SupportHiscox business insurance goes above and beyond, providing access to supplementary information and support through the Business Support Hub and CyberClear Academy

Award-winning service

Proud winners of the Feefo Platinum Service award, Hiscox is rated 4.6/5 by real customers on Feefo over the past year, with 3086 total reviews

What is business insurance?

Business insurance, also known as commercial insurance, is a tailored policy designed to safeguard small businesses against certain losses and risks that can emerge during the normal course of business activity.

With Hiscox, there are several types of cover to choose from, including professional indemnity, public liability and employers’ liability insurance, as well as specialist policies for your office contents, and to help in the event of a cyber-attack.

Bespoke business insurance policies can prepare you for the unexpected such as disruptive data loss, compensation claims or specialist equipment damage and protect your firm should things go wrong.

Do I need business insurance?

UK companies that employ staff may need to hold a certain type of business insurance – employers’ liability insurance – by law. Other policies, such as public liability cover, can offer invaluable reassurance and protection.

Business insurance is there for anyone and everyone who provides a professional service and might be at risk of having a claim brought against them.

Our policies can help a wide spectrum of businesses, start-ups and mid-size firms with headcounts as high as 100 when faced with claims of negligence, defamation, breach of confidence or intellectual property infringement. Other types of commercial insurance can help to recover your IT systems and safeguard property and specialist equipment.

From slips and trips to workplace illness, even if you and your business are not at fault, costs can start to add up without a policy in place.

Who we cover

Hiscox offers specialist cover for all kinds of companies, from new micro-businesses to family enterprises and growing SMEs, across a wide range of industry sectors.

Sole traders, consultants and the directors of limited companies can all benefit from our commercial covers.

In fact, Hiscox business insurance can support UK-based firms that trade with tools as well as those dealing in services, professional advice and knowledge. This means gas and heating engineers can benefit from our products, as can recruitment consultants, management consultants and marketing and media agencies.

Whether you’re a hands-on sports coach or a well-versed educational consultant, it’s possible to find the right business insurance products for your needs when you generate a quote.

We even create customised small business insurance cover for more unique needs, such as home tutors, publishers and charities. Together we can create a policy to suit your business.

You can choose covers that protect you if:

Someone in your business makes a mistake that costs your client time and money
You use intellectual property rights like a trademark without permission – it’s easy to do without realising
You or an employee makes false or damaging claims about a person that you thought were true
You accidentally share sensitive client information without realising, or without permission

We insure over 400,000 businesses, based on the number of policies sold in 2021.

Types of business insurance cover

Professional indemnity

Professional indemnity insurance is there to offer protection and support if you or an employee are alleged to have been negligent, or if a client believes you got something wrong that led to financial or reputational damage. We’ll be there to help with compensation costs and legal fees so you can get on with running your business.

Learn more about professional indemnity insurance.

Public liability

Public liability insurance protects you and your business if someone claims their property has been damaged, they were injured or fell ill because of you or one of your employees. Whatever you do for a living, accidents can happen, and they're not always directly related to the job. If a customer, courier or passer-by makes a claim, a public liability insurance policy covers any legal and compensation costs.

Learn more about public liability insurance.

Product liability

Product liability insurance provides an extra layer of protection as part of your public liability cover. If someone complains about a product you’re involved in, whether your company designed, manufactured or sold the product, you’re protected against any costs. Product liability cover might be especially important in the retail and technology sectors and Hiscox can build it into your public liability cover.

Learn more about product liability insurance.

Employers’ liability

Employers’ liability insurance may be a requirement under UK law for most business groups. It makes sure you’re protected if an employee is injured on your premises or becomes ill and they claim it’s because of something that happened at work. As well as full-time employees, you might also need cover for part-time staff, volunteers and casual helpers. An employers’ liability insurance policy minimises disruption by helping with the costs of defending or settling a legal claim. Employment practices liability is slightly different and protects the managers of a business against employee claims.

Learn more about employers’ liability insurance.

Cyber and data insurance

Cyber and data insurance could be especially important for anyone who uses data – including computer programmers and marketing professionals. Any business can face a cyber-attack and it can take time and money to put things right – that’s what our cover is there for. Cyber cover also protects against claims arising from data breaches if you or an employee accidentally shares sensitive information.

Learn more about cyber insurance.

Personal accident insurance

People power is everything for the UK’s small businesses and particularly for micro-businesses including start-ups. That’s why personal accident insurance could be so important – if you or an employee is unable to work due to an accidental injury, we’ll keep your business healthy with up to £250 per week. If a serious accident affects your livelihood, this type of cover also pays out a lump sum. It helps you safeguard against the ultimate ‘what ifs’.

Learn more about personal accident insurance.

Hiscox can also provide other types of commercial insurance, including legal protection cover and office and contents insurance. Taking out specialist insurance can be a good idea in some fields. Find out more about what we cover.

Why Hiscox Business Insurance?

Why choose Hiscox? Because when things go wrong, we’re the small business insurance experts, experienced in putting things right. You work hard to build your business, so we work hard to help you look after it and protect your good name.

Whatever you do for a living, we offer superior service and continual innovation, as seen with our CyberClear Academy. We provide an award-winning service too, as proud winners of the Feefo Platinum Trusted Service Award. This independent seal of excellence is rated by real customers. We’ve also won the Response to a Major Claim award at the Commercial Insurance Awards in March 2018.

With a range of cover limits and specialist claims teams on hand to get you back up and running, you can rest assured, you’ve got the right cover in place. But don’t just take our word for it – go check out our reviews and ratings on Feefo(external link).

You can also browse our business insurance reviews’ page to see how our customers feel about working with us and our business case studies for some real-life examples of how we’ve helped UK-based businesses just like yours.

We know that with the right insurance, your business can flourish even when faced with a challenge. Get an online quote for business insurance today to find out how Hiscox commercial cover can keep your empire healthy.

Business insurance FAQs

Is business insurance a legal requirement?

Some types of business insurance, such as employers’ liability cover, might be required for most companies under UK law. While others are not necessarily a legal requirement, they may be strongly recommended as a safeguard measure, such as public liability insurance. This cover protects you against any costly claims made against you or your business.

How much does business insurance cost?

The total cost of your business insurance policy is dependent on the type of cover you need, the value of that cover, and any risks specific to your company operations or industry. With Hiscox, small business insurance quotations start from just £9.80 per month*, so protection is affordable, whether you’re just starting up or you’re a seasoned entrepreneur. Find out more about the cost of business insurance here.

*Figures based on an average of at least 10% of our customer base between October 2020 and October 2021

Can I get business insurance before registering my business?

You can get business insurance before your limited company is officially registered, which is great news for start-ups, since it offers full protection from day one of trading. When you set up a new business, taking out insurance might be one of the first things you do to ensure any property, vehicles, IT systems and liabilities are taken care of. We can help your business thrive from the very beginning.

How long is a quote valid for?

An online quote for Hiscox business insurance can be saved for later – you’ll just need to create an account and log in to retrieve it. Quotes are valid for 45 days after they are produced. If you aren’t ready to purchase cover just yet, opt for us to stay in touch when you choose cover and we’ll keep you updated with the latest products, price points and special offers.

Can I get business insurance without a trade licence?

It is possible to take out business insurance before you receive your trade licence. This offers the reassurance that you’re covered as soon as you launch your business. However, it’s important to note that your insurance policy might be invalid if you begin trading before your trade licence arrives with you, meaning potential claims might not be paid to you.

What are some real-life examples of Hiscox business insurance claims?

We’ve helped customers with cases such as the software professional accused of sub-standard development work and also the wildlife photographer whose photography kit was stolen by baboons. Whether you need a professional indemnity insurance policy or portable equipment cover to fall back on, read through our business insurance claims stories to gain a clearer picture of how small business insurance can protect you, in all sorts of circumstances.

Business articles and guides

The ultimate guide to managing a small business

Running a business takes guts and determination – it’s a thrilling ride, with ups and downs along the way. To stay successful through challenging times, it may help to do your homework.

Read our guide to managing small business risk in association with Courier magazine to make sure your small business doesn't get caught out.

‘Claims made’ vs ‘claims occurring’ – understanding insurance jargon

Business insurance policies can be written on two bases – 'claims made' or 'claims occurring'. Knowing the difference and understanding how this relates to the period a policy covers is important should you need to make a claim.

Read our guide to understanding insurance terms to stay in-the-know.

What type of business insurance does a sole trader benefit from?

There is a wide range of insurance available to help small business owners secure clients, protect employees, or simply sleep more soundly at night. But what sort of insurance is available for sole traders?

Preparing to go it alone? Learn about insurance for the self-employed before you get started.

The small business guide to cyber-attacks

In an increasingly digital landscape, cyber-attacks allow criminals to extort money from small businesses and can even be used for spying – yet some SME and micro-business owners still don’t know what an SQL injection is or how to spot phishing.

Our FAQ guide to cyber-attacks for small businesses runs through the basics, key statistics and some things you can do to stay safer online.

Employers’ liability certificate: What you need to know

Some types of business insurance, including employers’ liability and public liability covers, are so fundamental for many small businesses that they come with their own certificates in the UK.

Read this explainer to learn more about the employers’ liability certificate and how to display yours correctly.

What is trustees’ insurance, and why is it important?

Business insurance typically protects the interests of a company or trading entity. However, sometimes a personal version – known as management liability cover – becomes relevant to protect leaders from personal risk. Such people might include the directors of small businesses and non-profit trustees.

Charlotte Lawson sheds light on a lesser-known type of commercial cover, outlining the importance of trustee insurance.

Small business insurance

You can’t predict the future, but you can make sure you have protection in place for your business by getting the right small business insurance. It means that you’re covered in the event of unforeseen costs and claims, just when you need help the most.

What is small business insurance?

Small business insurance is simply a type of business insurance that better caters for smaller businesses. If you run a smaller business, your needs and priorities are probably different from those of a big national chain. If you work with a more bespoke product or service, you can find specialist cover that’s tailored to you.

Why do I need small business insurance?

Small business insurance is there to help you deal with any unexpected difficulties your business may face, which ultimately lead to damages or a loss of earnings. With the right cover, small business insurance can help you get back up and running, and could cover any loss of profits if you have to close for a period. It can provide vital protection for small and start-up businesses, where any loss of earnings can seriously impact your company.

Some types of cover are a legal requirement, like employers’ liability insurance if you employ any staff and motor insurance if you use vehicles for work. But what other cover you need will depend on your business. It could be worth protecting yourself against:

Claims from customers
Business interruptions (although you probably won’t find cover for COVID-19 related interruptions)
Damaged property or stock

What insurance should a small business have?

The types of cover a small business might need include:

Public liability insurance - offers financial protection if your business is responsible for injuring a member of the public, or damages their property.
Employers’ liability insurance - if you have any employees, this insurance is a legal requirement. It protects you against claims made by employees against you.
Professional indemnity insurance - this is designed to protect you against the potential costs of a client seeking compensation from your business, for bad services, work or advice. Although not a legal requirement, many businesses, associations or clients may require you to have this before working with you.
Equipment insurance - typically covers tools, machinery and computers
Stock insurance - if you’re dealing in expensive or large amounts of stock, you may want to insure against their theft or damage.
Buildings and contents insurance - just like you’d insure your home, this covers your business property and its contents against things like flooding, fires and theft.

Do I need to get specific insurance for my business?

Whether you run a guest house, work from a home office or own a restaurant, your business insurance needs will be different. The size of your business may also make a difference. Large businesses may require a higher level of cover, but small and medium enterprises (SMEs) that specialise in a particular or more unusual service/product may need a more tailored policy.

It’s important to assess the risks that face your particular business and choose appropriate insurance. For example, if you’re an accountant or a solicitor, professional indemnity insurance can cover you if clients lose money because of advice you’ve given them. Or if you rely on computer systems, a cyber policy could help cover you for loss, interruption and damages to clients.

Here are some of the examples of the businesses we quote for, each with their own policy options:

Do I need to get employers’ liability insurance?

If your small businesses has one or more employees, you're legally required to have employers’ liability insurance to cover you if a member of staff suffers an injury or illness as a result of something that’s happened at work.

You’ll most likely need employers’ liability insurance if you:

deduct national insurance and income tax from wages
decide when and where people work
provide tools and materials
have people working exclusively for you that cannot be easily replaced.

Part-time, permanent, casual and temporary workers should all be covered by your policy and it’s worth checking if any unpaid help is covered too.

If you only employ close family, you may be exempt. But if you’re a limited company, you’ll still need the cover regardless.

Your policy must cover you for at least £5 million, as legal costs and compensation can easily spiral. Most policies will cover you for £10 million.

You could be fined £2,500 for every day you don’t have employers’ liability insurance when you need it. If you can’t show your insurance certificate when asked, you could be fined a further £1,000.

How much will small business insurance cost?

The cost of your insurance will depend on a variety of things. It’s important to really consider what your business is at risk from and get a policy that will cover you adequately. So, think about need first, cost second.

While every business is different, here are some of the things that can affect the cost of small business insurance:

Size of business – there’s actually quite a lot of room within what a ‘small’ business actually is. You might be small compared to one of the trillion-dollar megacorps, but it’s all relative. The size of your business can refer to the number of employees you have, the amount of real estate you operate out of, as well as the amount of stock you move.
Type of business – what sort of business are you operating? Is there a high-level of risk, such as investments, financial services or property management, or perhaps you work with antiques? These sorts of businesses may require more specialist cover, which can be more expensive.
Level of cover – of course, the amount you’d like to be covered for affects the amount you’ll pay. It’s a simple trade-off: the greater the pay-out you’re after, the more you’ll be expected to pay in premiums. However, you could look to offset some of that with a higher level of excess that you’re willing to pay.

Do I still need business insurance if I work from home?

It depends on the type of business you run. If you have equipment or store stock at home, you could find your regular home insurance policy won’t cover you for loss or damage. You might even find that working from home cancels out your home insurance policy should you need to claim.

It’s better to play it safe, so, if you’re planning on working from home, check your policy documents carefully and read the T&Cs to find out if you’re covered, or if you’ll need to take out separate insurance. Also, if you invite customers into your home, then it’s worth looking at public liability insurance because this will help cover you if a client suffers an injury or damage to their property and makes a claim. You should also consider professional indemnity insurance, whether you’re working from home or not.

Do I need professional indemnity insurance for my small business?

It’s not an insurance that every company will need. It applies to businesses that offer knowledge, skills or advice as part of their work. It might be needed by a self-employed individual like a consultant, an accountant or a company. Certain industries require professionals to have this insurance under regulation, and sometimes client contracts will specify a certain level of professional indemnity insurance is necessary.

Compare business insurance quotes

Whether it’s a third party injury or a serious professional indemnity claim, if you run a small business, there’s a risk that something will go wrong. From public liability insurance to employers’ liability cover, professional indemnity risks and specific trade and equipment insurance, business or company insurance can combine comprehensive cover for the specific challenges you face.

compare business insurance quotes from globally-recognised and trusted brands
trusted by over 800,000 small UK businesses for flexible, tailored cover
Cover from £6.56 a month, get insured in minutes

(10% of direct debit customers repay their annual policy in 10 monthly payments of £6.56 or less across all our trades insured. Based on data from 1 Sep 2021 - 31st Feb 2022, for comparison only. Cancellation charges may apply, please refer to our full terms & conditions.)

What is business insurance?

Business insurance protects businesses against losses that happen as a result of normal business activities – particularly when a compensation claim is made. There are different types of cover for different types of risk, from legal liability, to property damage, to employee-related issues.

Fill in our form to compare commercial insurance quotes tailored to your needs.

For more information check out our business insurance FAQ pages.

What does small business insurance cover?

We’ll usually start with public and product liability insurance, designed to cover you against slips, spills, and injuries. Lots of trade professionals add professional indemnity insurance, plus cover for their equipment, tools, stock, and supplies, or personal accidents which could stop the business running. And if you do employ anyone, a business insurance comparison which factors in employers’ liability cover is usually a must-have, as a UK legal requirement.

Public liability insurance

Public liability insurance protects you if someone is injured or their property is damaged because of your business.

If you do employ anyone, you’re usually required by law to have employers’ liability insurance too.

For example:

your coffee shop business is held responsible for damage to a neighbouring shop’s front window
the building business you own receives a third party injury claim, after a member of the public trips and falls over your tool kit, breaking their knee

What you’ll need additional cover fr accidents caused by your employees aren’t covered by your public liability insurance policy, but you can easily add employers’ liability insurance to help take care of this.

Employers’ liability insurance

Employers’ liability insurance covers claims from employees who’ve been injured or become seriously ill as a result of working for you.

For example:

your employee catches their hand on an exposed nail in your premises, which becomes infected
an apprentice training with you slips on a wet floor while cleaning down, injuring their lower back

Employers’ liability insurance is required by law if you have people working for you. Without it, you could be fined up to £2,500 a day for each employee.

Professional indemnity insurance

Professional indemnity insurance covers you in the event that your business gives faulty advice that causes financial loss to a client.

For example:

you provide investment advice to your client and they hold you responsible for a subsequent financial loss
you’ve issued certification to a client which contains an error, and your client suffers a financial loss

Business insurance for a wide range of trades

At Simply Business we insure all kinds of trades, from hairdressers to builders and even fortune tellers. Check out our list below and read a bit more about some of the businesses we insure:

Don't worry if your trade isn't listed above. When running a quote you can choose from over 1,000 trades.

Things to consider before buying business insurance

You should give accurate information when building your quote. This helps make sure you get the right cover for your business. These are some of the questions you should answer when buying insurance:

are you a sole trader or limited company?
does your business deal with members of the public?
do you have a business premises?
does your business hold any stock, equipment or tools?
does your business employ any other staff?

If you're not sure about the information you need to supply, you can always give us a call on 0333 043 8527 and one of our team can help you with your quote.

Building your business insurance policy

You can build your policy from a range of different covers to suit your individual needs.

Public liability insurance is an important cover for lots of businesses. And if you have employees it's likely that you're legally required to take out employers’ liability insurance (even if they're contractors, casual workers or temporary staff).

It’s up to you to decide what cover works best for your line of work.

Here’s where public liability insurance can be useful: a plumber installed a plastic push fitting which failed and caused a leak. It also affected neighbouring houses. The claim was settled for £160,000, of which the plumber only paid £500.

Can I see some real examples of business insurance claims?

Below are two real-life examples where customers have saved themselves thousands of pounds having business insurance through Simply Business. Can you afford to go without business insurance?

Business insurance saved them more than £44,000

A shop owner returned from a trip to the cash and carry to find their business premises on fire. The fire itself was fairly large, with extensive damage to the premises and stock. As a result, the shop owner was unable to trade for the foreseeable future. Luckily, the shop owner had business interruption and stock cover, so was able to make a claim.

Claim settlement: £44,699

What the business owner had to pay: £300 excess

Business insurance saved them more than £23,500

A restaurant owner was found at fault after an oil spill in the restaurant led to a customer having a bad fall. The customer fractured their collarbone and two ribs, and had to go on sick leave for the best part of five months. The claim covered the treatment and pain suffered by the customer, as well as the cost of their sick pay.

Claim settlement: £23,722

What the business owner had to pay: nothing (nil excess)

Business insurance saved them more than £21,000

David (not his real name) removed a wall at his customer's property and installed some metal beams. The rooms above have since developed cracks, and David thinks the initial crack was caused when he removed the wall. Luckily, he had business insurance to help him cover the costs to his business.

Claim settlement: £21,290

What the business owner had to pay: £100 excess

What kind of excess should I expect?

An excess is an amount you pay towards any claim you make on your insurance. For example, if your excess is £250 and you make a claim worth £1000, your payout will be a maximum of £750.

Insurance cover	Lowest excess	Highest excess
Public liability	£100	£2500
Employers' liability	No excess	No excess
Tools	£60	£500
Stock	£100	£500
Business and office equipment	£50	£750

The figures above are for guidance only and any excess applying to your quote may differ. You’ll get a breakdown of the excesses for each quote when you compare with us.

Business insurance FAQs

We've got comprehensive FAQ pages that explain a lot more about business insurance. Get the answers to these popular questions:

How much does small business insurance cost?

This depends on different factors like the nature of your work, the type of insurance you need, and your cover levels. Businesses that insurers see as riskier will usually pay more for their policy. The easiest way to find out how much business insurance will cost is to run a quick quote.

Is business insurance a legal requirement?

While business insurance isn't a legal requirement, some regulators may require you to have it in order to operate. The only type of business insurance that's mandatory under the law is employers' liability insurance – it's likely that if you have staff, you need this cover.

How much business insurance do I need?

Most businesses with employees need to have at least £5 million of employers' liability insurance. It also depends on the nature of your work, and whether clients, contracts or regulatory bodies specify a particular level of cover. Think about how much you might need to pay out in claims if something goes wrong.

Can I get business insurance before registering my business?

Yes, you can buy business insurance before registering your business, and even before you've started trading. Keep in mind that when buying an insurance policy, insurers will ask for details like your business address, your trade type, and your actual or projected turnover.

Can I get business insurance without a trade licence?

Yes, as you can buy business insurance before you begin trading. But some types of business will need a trade licence to operate – and if you need a licence and start trading without it, your insurance may be invalid. Trade licences are usually issued by the relevant licensing authority or by the local authority.

What can affect the price of my policy?

The price of your policy is tailored to your business. It’s based on a number of factors, such as:

your claims history, particularly the past five years
how long you've been operating in your trade
working in dangerous environments
working with dangerous materials
the value of goods, equipment, or tools you insure
the number of covers you add (the more covers, the greater the price)

Can I add cover for a different trade or profession to my business insurance policy?

Yes. It’s important to make sure you have the right type and level of insurance for the different types of work you do. For example, if you’re a builder, you may also do roofing work on certain jobs – you’ll need additional cover for this, but you can have it all on the one policy.

When you start your quote, you’ll have the option to add another trade or profession to your policy. If you need to add a third trade, give us a call on 0333 043 8527 and one of our insurance experts will help you set up your policy in minutes.

Can I add cover for a different trade or profession mid-way through my policy?

Yes. You may start offering additional services that require you to use different skills or carry out different tasks. If you find yourself in this situation, it’s important to give us a call on 0333 043 8527 to update your policy before you take on this new work.

If you don’t have the correct type of cover in place for the work you do, you may be unable to claim on your policy if something goes wrong.

Can I buy business insurance if I’ve had any CCJs or IVAs?

Each insurer looks at CCJs and IVAs differently – some apply stricter rules than others, but having a CCJ or IVA doesn’t necessarily mean you won’t be able to buy insurance.

What’s the difference between paying by direct debit and paying in one lump sum for business insurance?

You can choose the payment type that suits your business and cash flow best. Some customers prefer to pay in one go, while others prefer to pay a regular monthly amount, like you do with lots of other bills.

Simply Business offer three ways to pay for your policy:

one-off credit or debit card payment
BACS payment
Direct Debit

If you choose to pay by Direct Debit, our credit provider, Premium Credit, pays Simply Business the full amount for your policy up front. You then repay Premium Credit in 10 monthly installments.

Will changing from sole trader to limited company affect my insurance policy?

If you change your business legal structure from sole trader to limited company mid-way through your policy, give us a call straight away on 0333 043 8527. It’ll only take us a few minutes to cancel your existing policy and replace it with one that correctly covers your new legal structure. It’s worth bearing in mind that your insurer and premium amount may need to change.

Does public liability insurance cover my business for the actions of my employees?

This will depend on whether you have employers' liability insurance in place. Public liability insurance is designed to protect your business against the consequences of legal action brought by members of the public for injuries or damage to their belongings. But when it comes to your employees causing injury or damage, this protection only activates if you also have employers’ liability insurance.

If you employ people, you’re required by law to have employers’ liability insurance.

There’s one exception here. Family businesses that aren’t incorporated as a limited company are not legally required to have employers' liability insurance. The government defines a “family business” as one where all your employees are closely related to you (as a spouse, civil partner, sibling, child, parent, grandparent, grandchild, step-parent, stepchild or half-sibling). So if you run an unincorporated family business and you choose not to get employers’ liability insurance, it’s important to know that your public liability insurance wouldn’t cover you against damage or injury caused by your team.

Insurance by industry

Insurance by business type

Business insurance

Easy-to-build business insurance to match your unique needs

Tailored cover that you choose to fit your business – only pay for what you need
Public liability, professional indemnity, employers’ liability core covers available
Contents insurance to safeguard your workspace, office or shop
Protect tools or technology with optional extra covers
Access to the tax and legal helpline

What is business insurance?

Business insurance gives you protection from everyday business risks to large, unexpected compensation claims. It can protect your work, your people, your reputation, and ultimately, your future livelihood.

Business insurance is typically made up of public liability, employers’ liability, professional indemnity, and buildings and contents insurance. But that’s not all. Depending on what your business does, you can also add protection for terrorism, defamation, equipment – and much, much more. Because your business is unique, so your insurance needs to be too.

Small and micro businesses are often most at risk, as many couldn’t afford to face a hefty compensation or damage claim or without having business insurance in place. From mistakes to trips and slips to flooding, accidents can happen anywhere, at any time. So it doesn’t matter if you’re selling cupcakes on the side, vintage clothes online or you’re building up your established plumbing firm over time – you’ll need business insurance to protect you from the things that could go wrong, from the get-go.

Insurance as unique as your business

When you run a business, you don’t have time to spare working out what insurance you need. You’re too busy to work out the ins and outs of public liability or professional indemnity insurance. We get it. So we’re spending our time in keeping things as simple as possible – so you can get properly protected, pronto.

We provide cover for SMEs online and over the phone to:

Micro businesses (0-9 employees)
Sole traders
Self-employed people

With our business insurance you can easily combine different covers and choose from a list of add-ons. So you only pay for the cover you need. You’ll leave with business insurance unique to your business, no-one else’s.

Ready to get a quote? If you’re still not entirely sure what business insurance you need, that’s okay. When you get a quote, we’ll ask you some specific questions up-front that’ll help guide you in the right direction – no matter what your business does. Easy peasy. And if you buy online, you’ll save 10% too.

What insurance could I need for my business?

Public liability insurance

Public liability insurance protects your business against accidental injury and property damage claims from your customers, visitors or people you visit.

Professional indemnity insurance

Professional indemnity insurance protects you from compensation payments and defence costs if a client thinks you’ve made a mistake or given bad advice (that's resulted in a financial loss) and makes a claim against you.

Employers’ liability insurance

Employers' liability insurance covers you against work-related injury or illness claims from employees. And in most cases, if you have someone working for you, it’s required by law.

Contents cover

Whether your shop is online or on the high street, we’ve got you covered with our contents insurance for businesses.

What level of business insurance do I need?

It’s a fine line to tow – you only want to buy and pay for the cover your business needs, but you also want to make sure that you’re properly protected should the worst happen.

The higher the level of protection you choose, the more protected you’ll be if you’re faced with a claim for compensation. Choose too low a level of cover, and you’d be personally liable for any shortfall should a large claim be made against you.

When thinking about the level of cover you need, consider what risks your business is exposed to – do members of the public frequent your premises? Do you give advice that could result in financial loss for a client? Do you have several employees under your care?

With AXA’s public liability insurance, you can choose to take up to £5 million cover. Remember, some clients or contracts might expect you to have a certain level of cover before working with you. For example, if you’re working for a large organisation or council authority, they’ll likely need you to have a higher level of cover.

Depending on what you do, you can also choose up to £5 million professional indemnity insurance. The same rules apply – the bigger your client, a higher the level of cover needed.

Professional indemnity insurance is also available to trades that also offer professional advice, like electrical contractors or heating engineers. With AXA, you can add a standard £1 million of professional indemnity cover to your business insurance.

Employers’ liability insurance is there to protect your staff. By law, you need to have cover of at least £5 million. At AXA, we’ll give you £10 million as standard, for complete peace of mind.

If you have premises – like a shop or an office – our business contents insurance will protect you up to the level of cover you choose. Remember to take into consideration, the value of your stock, shop front and contents.

And remember, with AXA, you can increase your level of cover at any time in your online account – for no additional fee.

Is business insurance a legal requirement?

In some cases, it can be. If your business has staff – even if they’re volunteers, apprentices, contractors or temporary – then employers’ liability insurance is a legal requirement under the Employers’ Liability Act 1969. The law doesn’t apply if you only employ family members. But it’s better to be safe than sorry.

By law, you need £5 million employers’ liability cover. At AXA, we’ll give you £10 million cover as standard. So if someone is injured or becomes ill as a result of working for you – even years down the line – you’ll have confidence in knowing you’re covered.

While not required by law, bear in mind that some clients might ask for proof of certain types of insurance, like public liability insurance, before giving you work. Some professional regulatory bodies will also require your professional indemnity insurance to be in keeping with their requirements – let us know when you get a quote, and we’ll provide you with the right proof in your documentation.

You can add employers’ liability insurance to your business insurance policy when you get a quote online.

How much does business insurance cost?

Your business is unique. So as you might expect, the cost of your business insurance will be unique too. It’ll reflect a whole host of things, like the size of your business, what your business does, and what type of activities you undertake.

To give you some idea of what it could cost, 10% of our customers pay £82 a year*, or less, for their business insurance – so it can be cheaper than you think to get the peace of mind you need. Buy online, and you’ll also automatically save 10%.

With AXA, you can tailor your business insurance, meaning you only choose – and pay for – the cover you need. Putting you in control. And if you’re confused about what to choose, don’t worry, our Business Insurance Wizard can help.

And when you’re ready to buy, you can pay annually, or to help spread the cost, you can choose to pay monthly (subject to acceptance criteria).

The best way to find out how much it would cost to insure your business is to get a quote online – it only takes a few minutes.

Can I get business insurance before registering my business?

Yes, you can. You can get business insurance before you’ve started trading – and before you have even registered your business.

We don’t need your company registration number or any business registration information. All we need are details on your business address, trade type and your actual/projected turnover.

Say hello to better small business insurance

Hassle-free protection for freelancers, sole traders and limited companies – with priceless advice and award-winning service thrown in.

Every year, over 40,000 businesses trust our protection

Our clients aren't insurance experts. They don't need to be because they know we are. Us looking out for you means you'll spend less time doing insurance and more time doing business. Whether you whizz through online or talk it through with the team, you'll get everything you need and nothing you don't.

Small business insurance has never been so easy.

Insurance for charities, not-for-profits & community groups

Concentrate on your good cause and get the right cover for your organisation, whether you're large, small, grass-roots or anything in between. We help charities, clubs and community groups find the cover they need, including trustee insurance and public liability insurance.

PolicyBee exists because small business insurance could, and should, be better.

I started the UK's first quote-and-buy-online small business insurance broker in 1998. My own cover was complicated and time-consuming to sort and I figured there must be another way.

So, we've made your insurance easy to read and hassle-free to buy. Call us and you'll talk to bright, knowledgeable people who have your interests at heart. We'll be with you from helping you choose your cover right through to fighting your corner if you claim.

It's all part of doing insurance better. Join us and see how.“

What business insurance do you need?

Dealing with claims takes time, money and legal know-how. You might have enough of one but you'll need lots of all three if it's your unlucky day.

If things do go wrong, business insurance pays your legal costs, picks up your repair bills and covers any compensation. You're free to keep running your business, safe in the knowledge you'll still have one when it's all over.

Professional indemnity insurance

Covers you if you make a mistake or if an unhappy client says you've not done what was agreed – regardless of whether you're actually at fault. It pays for your legal defence, pays to fix whatever's wrong, and pays any compensation. Essential cover for your reputation (and your bank balance).

Public liability insurance

Covers you if someone – anyone – claims your business has injured a person or damaged their property. It pays to defend you and compensates the person claiming. Perfect protection against ‘where there's blame there's a claim'.

Employers' liability insurance

Covers allegations and claims made by staff that your business has made them ill or injured them. Legally, any UK business with employees has to have employers' liability insurance. ‘Employees' in this case includes volunteers, temps, work experience kids and even people lending a hand.

Cyber insurance

Covers the time and money needed to put your business back together following a cyber-attack. This includes the costs of repairing hardware and restoring data, compensating customers, and covering lost income when you're offline.

Insurance for small businesses

If you run your own small business – or you’re thinking of starting one – business insurance can help offer protection for all your hard work. There are a few different types of policy out there, so we’ve put together a list of some of the different types of business cover that we think would be most helpful to SMEs.

First of all, no matter the size of your business, all employers are legally obliged to have employers’ liability insurance to cover the cost of compensating employees who are injured or become ill through work.

If your business uses vehicles, you are also your legally obliged to have commercial motor insurance.

SMEs can be especially vulnerable against potential risks and unforeseen events, which is why there are specific insurance policies that some small business owners may want to consider, depending on the type of business it is.

Protect yourself against the risk of compensation claims and legal action

You have legal responsibilities towards your customers and the general public. If members of the public are injured, you could be liable to pay compensation if you or your employees have done something wrong, failed to do something you should have, or broken the law.

Public liability insurance covers the cost of claims made by members of the public for incidents that occur in connection with your business. This could mean someone who fell and hurt themselves while in your shop, or if property was damaged at an event off-site organised by your business.

Professional indemnity insurance covers the cost of compensating clients for loss or damage resulting from negligent services or advice provided by a business or an individual. Some professions are required to have PII by their regulators (see which ones here), while many companies choose to have it. PII is especially useful for companies who:

Offer advice and provide consultancy
Offer an expert service, such as designs or calculations
Hold client information and data

Product liability insurance covers the cost of compensating anyone who is injured by a faulty product that your business designs, manufactures or supplies.

Protect your property

Buildings and their contents are essential to any business. Insurance provides financial protection when your property is damaged through events like burglary, fire or flooding. In addition, Business Interruption Insurance will cover you for any periods when you cannot do business as normal because of damage to your property.

Buildings insurance pays for damage to your business buildings caused by fire, lightning and flooding.
Contents insurance pays for damage to, and theft of, stock and business equipment.
Business interruption insurance covers you for loss of income during periods when you cannot carry out business as usual due to an unexpected event.

Protect yourself against financial risk

Some insurance products provide a safety net for financial risks, such as customers with bad debts or untrustworthy employees.

Trade credit insurance provides cover for businesses if customers who owe money for products or services do not pay their debts, or pay them later than the payment terms dictate.

Money insurance replaces stolen money belonging to your business, whether from your premises or in transit.

Key person insurance protects your business against losing income when a person in an important position dies or becomes disabled.

Employee dishonesty insurance protects your business against your employees stealing money or stock.

Protect your employees

Employees are an invaluable asset to every business, and there are various insurance products that will help provide financial security and medical assistance for you and your employees in the event of illness. In addition to compulsory employers’ liability insurance, you may want to consider the following products:

Income protection insurance will pay a monthly income to employees who are unable to work due to illness, injury and / or suffer a reduction in salary for a prolonged period.

Private medical insurance covers the cost of private medical care for your employees, allowing them to receive treatment quickly and minimising disruption to your business.

Health cash plans can cover your employees’ fees for eye tests, dental care and physiotherapy.

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Small Business Insurance

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Our top recommended policies for small business owners and contractors

No single small business insurance policy covers all risks. Different types of commercial insurance address different accidents, lawsuits, and damages that could impact a business. These policies address common risks.

General liability insurance

General liability insurance

Business owner's policy

Professional liability insurance

Errors and omissions insurance

Workers’ compensation insurance

Cyber liability insurance

How much does small business insurance cost?

Auto insurance for small businesses

Commercial auto insurance

Hired and non-owned auto insurance

Find business insurance requirements in your state

Specialized coverage for unique risks

Commercial umbrella insurance

Commercial property insurance

Business interruption insurance

Inland marine insurance

Product liability insurance

Employment practices liability insurance

Directors and officers insurance

Special event insurance

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How much does small business insurance cost?

Why do I need business insurance?

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Policies for specific industries

Liquor liability insurance

Builder's risk insurance

Contractor's tools and equipment

Bonds for small businesses

Fidelity bonds

Surety bonds

License / permit bonds

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More Information About Small Business Insurance

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We Support Small Business Owners

Best Small Business Insurance Companies

State Farm is the best overall for small business insurance

The 7 Best Small Business Insurance Companies of 2022

Best Overall : State Farm

Best for Independent Contractors : Hiscox

Best General Liability Insurance : Nationwide

Best Workers’ Compensation : The Hartford

Best Workers’ Compensation : The Hartford

Best Commercial Property Insurance : Travelers

Best Business Owners Policy : Liberty Mutual

Best Commercial Auto : Progressive Commercial

Frequently Asked Questions

What Insurance Do I Need for My Small Business?

What Does Small Business Insurance Cover?

What Is a Business Owners Policy (BOP)?

Enter your information just once, in one application
Compare custom quotes from trusted insurance carriers
Choose the best rate and coverage for your business
Protection is peace of mind
Finding the right insurance for your small business is our top goal