17. Business Insurance for Small Businesses and the Self-Employed

Employers’ Liability Insurance – A legal requirement if you employ anyone (including part-time or temporary staff). Covers compensation if employees are injured or become ill through their work.
Commercial Motor Insurance – If your business uses vehicles, you must have motor insurance that covers business use (a personal policy is not enough).

Professional Indemnity Insurance – Essential if you provide advice or professional services (e.g. solicitors, accountants, financial advisers). Sometimes required by regulators. Protects your business against claims of negligence, errors or poor advice.

Commercial Property Insurance – Covers the cost of repairing/rebuilding your premises, and replacing stock or equipment.
Liability Insurance – Includes:
- Public Liability – for injury or property damage to third parties.
- Product Liability – for claims linked to products you make or supply.
- Directors’ & Officers’ Liability – for claims against directors or senior managers for mismanagement.
Cyber Insurance – Protects against cyberattacks, data breaches and IT system failures.

Inform your home insurer if you run a business from home, especially if you store stock or specialist equipment.
You may also need:
- Professional Indemnity Insurance – if you deliver services online or handle client data.
- Public Liability Insurance – if clients visit your home for meetings.

Visit the Association of British Insurers website for full details of insurance for self employed or small businesses.