Business Insurance Basics: What Cover Do UK Startups Really Need?

Every new business faces risks—whether it’s protecting staff, customers, or your own assets. Business insurance can seem complicated, but having the right cover gives you peace of mind and protects your startup from unexpected costs. Here’s a simple breakdown of the main types of cover UK startups should consider.

Public Liability Insurance

This covers claims if someone is injured or their property is damaged because of your business. It is essential if you interact with customers, suppliers, or the public.

Employers’ Liability Insurance

This is a legal requirement if you employ staff. It protects you if an employee is injured or falls ill because of their work.

Professional Indemnity Insurance

This covers mistakes in your work that cause financial loss to clients. It is common for consultants, designers, and other service providers.

Business Contents and Equipment Insurance

This protects laptops, tools, and other essential equipment. It can also cover stock against theft, fire, or damage.

Optional Add-Ons

• Cyber Insurance: For online businesses to protect against data breaches and cyber attacks.
• Business Interruption Cover: This helps if you can’t trade due to unforeseen events like a fire or flood.

Why Insurance Matters

The right insurance can be the difference between surviving an accident and closing your doors. It is wise to start with the essentials and then build your cover as your business grows.