What is Business Insurance?
Business insurance, Commercial insurance protects businesses from losses due to unexpected events during normal business operations, such as lawsuits, natural disasters, or accidents. Business insurance is no longer just a safety net, it’s a strategic necessity. Whether you’re a startup founder, a small business owner, or the CEO of a growing enterprise, having the right insurance coverage can mean the difference between bouncing back after a setback or shutting down permanently.
Do I need Business Insurance?
Business insurance isn’t, generally, a legal requirement in the UK. But there are some instances where it is essential. If you have staff, even just a single worker, you’re required by law to have employers’ liability insurance (external link). And if you wish to join a professional body, for example the Institute of Architects or the Institute of Accountants, you might be asked to have a certain amount of public or professional indemnity cover in place.
But whether it’s compulsory or not, business insurance can assist you when things don’t go to plan. If you believe you’d be hard-pressed to cover compensation or legal fees if someone sued you over work you’ve done, business insurance might be an option to consider.
Find out more through our comprehensive FAQ page, what business insurance do I need?
What types of Businesses take out Insurance?
Cover can be tailored to the requirements of your industry and the size of your business, whether you’re a tradesperson, a retailer or in the professions.
Main Professions that are included in commercial insurance
- Management consultants
- IT contractors
- C-Accountants
- Recruitment consultants
- Electricians
- Photographers
- Plumbers
- Carpenters
Why Business Insurance matters in 2025?
The corporate landscape has changed dramatically over the last few years, with 2025 bringing a mix of both challenges and opportunities:
- Cyber Threats Are Increasing: As companies increasingly digitize, cyber attacks are becoming more frequent and expensive. In fact, cyber insurance is today one of the most highly demanded types of coverage.
- Climate Change & Natural Disasters: Extreme weather conditions are interfering with operations and destroying assets more than ever before.
- Customer Trust: Insured businesses tend to enjoy more trust, particularly in businesses such as construction, healthcare, and technology services.
Key Types of Business Insurance
- Commercial General Liability Insurance
- Professional Liability Insurance
- Commercial Property Insurance
- Product Liability Insurance
- Vehicle Insurance
Commercial General Liability Insurance: Commercial general liability insurance is a type of policy for all businesses. It’s considered comprehensive insurance, although it does not protect against all risks. General liability provides coverage for bodily injury, property damage, medical expenses, libel, slander, defending lawsuits, and settlement bonds or judgments.
Professional Liability Insurance: In contrast to general liability insurance, which is for any business entity, professional liability insurance (PLI) is specifically for businesses offering services. The coverage is for loss arising from the service being offered. It insures against the costs of malpractice, negligence, or mistake.
Commercial Property Insurance: Property insurance is intended for firms that have large physical property, including equipment, signage, inventory, and furniture. It shields the business from loss in occurrences like storm or fire and theft. Property insurance can insure, for instance, loss of things like inventory, computers, furniture, or signage.
Conclusion
Commercial insurance is an asset because it insures a business against losses that could happen from unforeseen occurrences. When seeking business insurance, look at a few different policy types and ensure you are completely aware of the terms for each. Consider speaking with a professional financial planner who can compare the options of policy types that might be most appropriate for your business.