Guide: 9 types of business insurance

Which type of insurance cover does your business need?

9 types of business insurance

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The most commonly purchased types of business insurance reviewed.
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Make sure your business is protected from unforeseen events in an ever changing world.
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Does your company need one or more of these 9 types of business insurance?

9 types of business insurance

tick
The most commonly purchased types of business insurance reviewed.
tick
Make sure your business is protected from unforeseen events in an ever changing world.
tick
Does your company need one or more of these 9 types of business insurance?

By Simon Taylor (ACII) - Published: 18 July 2021

 

Different types of business insurance reviewed

Business insurance is there to offer financial protection should something go wrong. Below we take a look at the different types of business insurance available to offer protection.

Which insurance covers you decide to purchase will depend upon a number of factors. We recommend you consider your industry and your peers to understand how they manage transferable risk with different types of business insurance. For further information you should read what is business insurance?


    types of business insurance you may need:

    Below we discuss nine types of business insurance you may need to consider, however it's always worth having a conversation with an insurance broker to ensure the covers are suitable and designed to meet your requirements.

     

    1) Employers liability

    Employers liability insurance protects against claims arising from injury or illness of your employees. For example, an employee claims for compensation after falling at work and causing serious injury.

    Employers liability is one of the few types of business insurance which is compulsory in the UK. All employers have a duty of care to provide a safe working environment for their employees and purchase the cover. 


    2) Public liability

    Public liability insurance protects against claims arising from injury or property damage of persons other than your employees. For example, a customer claims for compensation after slipping on a wet floor at your premises.

    All businesses have a duty of care to maintain a safe environment for members of the public (including any customers, suppliers or contractors). Public liability insurance offers financial protection should an accident occur which causes injury or property damage. 


    3) Product liability

    Product liability insurance protects against claims arising from injury or property damage as a result of a fault with a product you have provided. Commonly purchased in combination with public liability insurance.

    Product liability insurance is commonly purchased by businesses which design, manufacture or supply products to their customers. Any business that supplies products is responsible for their safety and should therefore consider product liability insurance. 


    4) Professional indemnity

    Professional indemnity insurance protects against the failure to exercise reasonable skill and care in provision of professional or advisory services. For example, a customer requests financial compensation for a mistake that costs them money.

    As a subject matter specialist, clients will rely upon your skill, knowledge and due diligence to deliver upon the agreed services. Professional indemnity can offer financial protection should something go wrong. 


    5) Cyber insurance

    Cyber insurance protects your business against financial loss arising from security and privacy breaches. Can include first and third-party losses. For example, a hacker breaches your business’s electronic security and steals personal information.

    Cyber insurance can include a number of different covers under one product that aims to offer protection in an increasingly digital environment. Incident response services provided under the insurance can assist with mitigating the damage and potential costs. 


    6) Management liability

    Management liability insurance is a package policy designed to protect small to medium sized businesses, with D&O insurance, EPL insurance and crime insurance can be offered together.

    Businesses will typically purchase directors and officers once they reach a certain size, or have raised money from investors. Typically, packaged under a management liability policy this will protect the personal assets of the individuals whilst acting in a managerial capacity. 


    7) Property damage

    Property damage insurance is usually found under package policies such as commercial combined insurance for industrial or commercial businesses, or in an service based industry typically under an office insurance policy.

    Property damage cover will usually be split between contents insurance, buildings insurance, or plant / equipment insurance. Examples of what could be insured include: fire, theft, accidental damage, storm, flood, escape of water, impact, explosion and riot. 


    8) Contract works insurance

    Contract works purchased under a contractors all risk insurance protects the work in progress on a construction site in the event damage before responsibility has been handed to the principal.

    Contractor's all risk is a flexible package policy designed for contractors working within the construction sector. Contract works insurance is just one cover available, typically purchased with other liability insurance covers. 


    9) Fleet insurance

    Fleet insurance protects from an accident causing damage or injury. Comprehensive cover will provide for damage to your car, van or haulage vehicle. For example, a vehicle in your fleet has an accident and your driver is held accountable.

    Fleet cover typically starts at a minimum of 3 vehicles and can be extended to insure a fleet of any size. The three levels available are the same as your personal car or van insurance. Third party / third party, fire & theft insurance / and comprehensive insurance.