Business insurance
Insurance protects your business against risks that could threaten its existence. In the UK only a few policies are compulsory – but some others are so important that hardly any start-up should go without them.
Compulsory insurance
As soon as you employ staff, you generally need employers’ liability insurance from an authorised insurer with cover of at least £5 million. Without it you can be fined up to £2,500 for every day you are uninsured. Exemptions apply, for example to a company whose only employee is its owner holding at least half of the shares. Vehicles used for business need motor insurance that covers business use.
Strongly recommended
Public liability insurance covers claims if customers or members of the public are injured or their property is damaged – essential for trades, events and premises. Professional indemnity insurance covers mistakes in advice or services; some professions and client contracts require it. Depending on your business, product liability, contents and stock, cyber and business interruption cover also make sense.
Needs rather than all-round cover
Start from your real risks: what could hit you hardest – and how likely is it? Check whether your home insurance excludes business use if you work from home. planix helps you identify the relevant risks and plan the premiums in your cost plan.
Frequently asked questions
Which insurance is compulsory for my business?
Employers’ liability insurance with at least £5 million cover as soon as you employ people (with a few exemptions), and motor insurance for vehicles. Some regulated professions also need professional indemnity insurance.
Do I need public liability insurance?
It is not a legal requirement, but strongly recommended whenever you have contact with customers, the public or third-party property. Many clients and venues require it.
Ready to found your company?
Start for free with planix – no registration. Guidance, feedback and next steps, thoroughly reviewed within 24 hours max.
- 600+ founders supported
- Data stored in Europe
- Start for free – no registration