Frequently Asked Questions

There are a number of covers you will need to take out to protect your business. Depending on what you do, you should consider public liability insurance, employers’ liability insurance, contents insurance, business interruption insurance and equipment cover, to name a few.

Public liability insurance can cover the cost of compensation as well as any associated legal costs awarded to a member of the public if they are accidentally injured or their property is damaged as a result of your business activities. Find out more about public liability insurance.

If you’re running a business, the most likely answer is yes. Without public liability insurance you could be financially liable if your business activities accidentally cause harm to someone or damage their property.

Professional indemnity is a type of liability insurance that protects against professional negligence for those who give advice, provide services or designs. Find out more about professional indemnity insurance.

Professional indemnity insurance covers the cost of legal action in defending yourself against a claim for inadequate advice, designs or services as well as compensation awarded to rectify the damage.

Employers’ liability insurance is a type of liability insurance that is required by law to protect against claims for compensation if an employee sustains an injury whilst at work. If you are an employer then you have a legal obligation to have this insurance in place.

Employers’ liability insurance protects your business against compensation claims made by members of staff if they suffer an accident or injury at work during the course of their employment. Find out more about employers’ liability insurance.

Product liability insurance is a type of liability cover that offers protection for claims made against you if a product you sell, supply or manufacture is defective and causes injury to someone or damage to their property. Find out more about product liability insurance.

Product liability insurance covers claims for legal and compensation costs resulting from injury or property damage caused by defective products sold, supplied or manufactured.

Business interruption can cover loss of gross profit and increased costs of working following damage to property that affects your ability to trade. Find out more about business interruption insurance.

Cyber risk business insurance covers your business against exposures such as hacking, data theft and system infringement. Find out more about cyber insurance.

Business insurance can offer cover for property such as buildings, contents and stock and most policies will offer protection against damage caused by weather such as storm and flood.

Contents insurance protects business items and equipment that you use in your day to day business. For instance, if you are running a shop, this could include tills and display cabinets, and for an office would refer to office furniture.

Stock cover protects the goods that you sell but can also cover goods held in trust (such as a customer’s artwork to be framed) as well as works in progress, i.e. items that are still being manufactured or created on behalf of a client. Typically it is covered at the cost price to your business.

Personal accident insurance is a collection of benefits payable to employers or employees in the event of death, loss of limb, permanent total disablement or temporary total disablement that makes a person unable to work. Benefits can be selected as required and are payable as either a fixed sum or as a weekly benefit depending on the type of injury.

This means that your property is covered for all types of accidental loss and physical damage unless it is specifically excluded by the policy. This is a more comprehensive cover than a ‘specified perils’ policy which only covers specified events, i.e. fire and flood.

It gives peace of mind to ensure that legal expenses, awards of compensation and jury service/witness attendance allowances are covered for a range of unexpected events such as employment disputes, taxation proceedings and commercial tenancy agreements to name but a few. Typically it also provides a legal advice helpline for all business related issues, should you have any concerns. Find out more about commercial legal protection.

Directors and officers insurance policies offer liability cover for company managers to protect them from claims which may arise from the decisions and actions taken within the scope of their regular duties. Such policies cover the personal liability of company directors and officers as individuals but also the reimbursement of the insured company in case it has paid the claim of a third party on behalf of its managers in order to protect them.

Business interruption insurance is designed to cover a loss of gross profit, revenue or income following an interruption to the business caused by an insured event such as fire or flood. It will continue to support the business until you are back to the same trading position as you were prior to the event up to the maximum indemnity period. It can cover your fixed costs like rent/mortgage payments, staff salaries/wages and utility bills.

Terrorism insurance is purchased to cover potential losses and liabilities that might occur due to terrorist activities.

New for old cover ensures that your property, be it buildings or contents, is covered without a reduction in the value of the item for wear and tear, if a claim is made. So you will receive a new building or item to replace the old one at the same value as the original.

Generally the answer is no, the landlord would be responsible for protecting their property. However, from time to time it can be written into the lease agreement that the tenant will insure the building on behalf of the landlord. Check your lease agreement or speak to your landlord to double check. If you are responsible for insuring the building, you can add this to your business insurance policy. You can also add the landlord as an interested party if required.

Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination. It covers property as it moves from place to place. It is a class of property insurance that insures property while in transit against loss or damage arising from perils associated with the navigation of the sea or air and subsequent land and inland waterways.

Engineering Insurance protects a business against the risk of machinery or equipment breakdown. It can also provide cover for the inspection of machinery on an annual basis in accordance with regulation and legislation.

This is dependent on whether your subcontractors are labour only subcontractors, or bona fide subcontractors. Labour only subcontractors work directly under your supervision and use equipment, tools and materials that you have provided, and may use their own portable hand tools. As they work directly under your supervision, they are, in the eyes of the law, treated as employees of your business, therefore employers’ liability insurance becomes a legal requirement. Subcontractors who do not work directly under your supervision, use their own tools, materials and equipment, and may specialise in different aspects of work to you, are considered bona fide subcontractors. They are not considered by law to be employees of your business, therefore do not need to be covered under your employers’ liability policy. Most insurers will apply a condition to your business insurance policy to state that you must ensure all bona fide subcontractors have their own public liability insurance in place.

Tool insurance can offer protection for your business equipment up to a value of your choice. Different insurers will offer varying levels of cover so you can tailor it to your needs.

All insurers will ask that you take reasonable steps to protect your property from theft or damage. Leaving expensive hand tools or power tools on site is risky, however if reasonable precautions have been taken to secure them, for example, locking the building that you are working in and controlling access through limited key holders, then these could potentially be covered. Speak to one of our business insurance advisors who will be able to help you.

There are many covers available to you, aside from standard buildings cover. Most commercial landlord insurance policies will provide property owners liability cover as standard, which covers your liability as the landlord to members of the public for accidental injury and accidental damage to property.

You should also consider optional covers like loss of rent and legal cover, subsidence and optional contents cover as well.

Loss of rent cover can be included within a landlord insurance policy and can offer protection against loss of rental income if your property is damaged by an insured event such as fire or flood. It can also provide cover for alternative accommodation for your tenants while your property is being repaired.

Commercial landlord insurance covers your commercial property against claims for damage to buildings. It can protect you against claims made by tenants or third parties if they are injured at your premises and it is deemed to be your fault. It can also provide cover for loss of rent if your property is damaged following an insured event such as a fire or flood or employers’ liability cover if you employ staff such as cleaners.

For both commercial and residential landlord insurance, malicious damage by tenants covers you against damage to your property intentionally caused by tenants.

With the majority of insurance policies, stock and contents would be covered predominantly at the premises specified within your policy. The majority of insurers offer goods in transit cover as standard with most of their policies, to accommodate stock collection and business deliveries. You may also want to consider cover for goods away from the premises, including business laptops and mobile phones. Speak to one of our business insurance specialists if you require any advice.

There are many security features available ranging for high security locks and alarms to CCTV that can be viewed remotely from your tablet or mobile phone. Dependent on your trade and the goods or services that you provide, you may be targeted more than other businesses in the same area. Speak to a locksmith about upgrading your locks, and enquire about remote signalling alarms and what may be suitable. The initial outlay may seem a little costly; however the benefit of the long term protection and peace of mind is invaluable.

Dependent on the policy that you have taken out, you may have this included as standard. You would need to double check this is included within your insurance policy and that the cover meets all of your needs and requirements.

Retail insurance for pop-up shops and pop-up restaurants can be hard to find because most business insurance policies provide 12 months cover as standard. Talk to your broker to arrange suitable cover.

There are a number of insurance covers that you will need to cover your shop, most of which are conveniently combined into an easy to buy shop insurance package. Generally these include but are not limited to public liability insurance, employers’ liability insurance, contents and stock cover, money, business interruption and cover for your shop front.

Not all insurers offer the same level of cover and therefore you should check that the cover provided meets your needs.

Tools are usually covered under a property policy e.g. contractors’ tools or goods in transit – and not Commercial Van insurance.

Not all insurers offer the same level of cover and therefore you should check that the cover provided meets you needs.

Motor legal protection is usually sold in addition to your main motor policy, and is a separate insurance policy that only covers your legal fees in the event that you need to pursue somebody for losses and expenses after an accident that was not your fault. It can also cover against losses caused by uninsured drivers.

If you are using your own car for business purposes then you will need to include business use to protect you while you’re on the road or check that business use is included in your current car insurance policy. You should also check whether your car insurance covers commuting to work.

Most standard car insurance policies only provide cover for social use and commuting. If you use your own car in relation to your business whether doing deliveries, picking up supplies or visiting clients then you will need to ensure you are covered for business use.

To check if your tools are covered in a van overnight you will need to read your policy or contact your insurer and ask. Most insurers do not provide business tools cover on a motor policy and you will need separate tools insurance. Each insurer will offer different cover and may request certain conditions to be in place for cover to be in force.