What are the key features in commercial insurance?


From ice cream parlours to hair salons and garage repair shops, running your own business and being your own boss is a dream come true for many. However, with the rewards come challenges. One of which is choosing the right type of commercial insurance needed to protect yourself, your business and your employees. After all, as with businesses themselves, there’s no one-size-fits-all policy.

Read on to find out some of the key features you’ll need to consider.

What is commercial insurance?

This type of insurance simply protects companies, their owners and employees from losses that may occur during the normal course of business.

These include things like property damage, injury to employees or legal liabilities arising from accidents. There are many different types of coverage including public liability, employers’ liability, commercial property and professional indemnity insurance.

Why do you need it?

Businesses weigh up their insurance needs based on the risks to their business, which obviously vary depending on the environment in which they’re operating.

For example, a window cleaning business will have a very different risk profile to a law firm. Ask yourself these questions when considering what type of cover might be right for you.

●     What is the size of your business?
●     Where are you located?
●     Are you a sole trader or an employer?
●     How many employees do you have?
●     Do you offer a product, trade or service?
●     Do you have direct contact with the general public?
●     Do you own or rent business premises?
●     Do you own or rent business vehicles?
●     Do you maintain stock, work tools or equipment?
●     How reliant are you on IT infrastructure and the internet?
●     Do you handle or store customer data that needs to be protected?

There are many policies targeted at specific business types and their individual needs. Let’s take a look at what’s usually covered by these types of policies.

A smiling businessman smartly dressed in a suit in a modern building

Public liability

Whether on your premises or off-site, if a client, customer or member of the public is injured or killed, or their property damaged as a result of your work you’ll need insurance to protect you from the costs of legal claims and to compensate them for their loss.

Employers’ liability

No matter how small your business is if you employ others this is compulsory insurance. It protects your business from claims if an employee suffers injury or illness (whether on- or off-site) as a consequence of working for you.

This cover is so essential that you could face a fine of £2,500 for every day you don’t have it. If you do not display the certificate of insurance or refuse to make it available to HSE inspectors when they ask, you can be fined up to £1,000.

Professional indemnity

If you give advice, provide a professional service, or deal with other’s data or intellectual property you’ll need professional indemnity insurance.

It covers claims that may arise if a client loses out financially because you’ve been negligent in your advice, services or designs. Many professions require members to have professional indemnity insurance as part of their industry body’s regulatory requirements.

Commercial property

Whether you rent or own business premises you’ll want to consider commercial property insurance. Buildings insurance will cover the repair or rebuild of the business premises themselves, for example if there’s a flood or fire.

If the worst should happen then you’ll also need to have covered the contents of the property including goods, stock and equipment.

Product liability

If one of the products you sell or produce causes someone harm then product liability insurance is necessary to cover you against claims made against your business.
A man unloading flowers in a box from the back of a work van

Tools and equipment

Tools and equipment are essential to tradespeople such as carpenters, plumbers or electricians. As such you’ll need to protect against damage, loss or theft if you want to keep your business up and running.

Plant and machinery

From mini-diggers and cherry pickers to bulldozers and dumpers, plant and machinery need protection from damage or theft.


Many businesses need to maintain a store of stock to be able to fulfil orders successfully. However, as with any contents they are vulnerable to damage, loss and theft. Stock insurance covers these eventualities.

Cyber attack

Cyber insurance is a necessity for many modern businesses. It’s designed to cover internet-based risks relating to IT infrastructure and also cyber-attacks.

According to government figures, up to 46% of businesses and 26% of charities suffered cyber security breaches in the 12 months up to March 2020.

Business interruption

This type of insurance is particularly important for businesses that require a physical location to conduct their business, such as a shop.

This cover might compensate you for loss arising from events that disrupt your business.

Vehicle cover

Whether you own a small van for deliveries or run an entire HGV fleet for haulage work you’ll need commercial vehicle insurance to protect against theft, damage and third-party liability.
Three yellow vans parked in a row outside a businesses depot

Protect your business with Insurance Choice

If you own a business, then you need commercial insurance. But you shouldn’t rush into buying the first or cheapest policy you see. The insurance market is huge and policies will vary greatly in terms of quality. Your business deserves one that’s tailored to its particular needs.

You can rely on the dedicated team at Insurance Choice to find the ideal cover that’s tailored to your business for a competitive price.

We’ll draw on our panel of carefully selected insurers who specialise in providing quality cover. From care homes to nightclubs, we can source the right type of protection for you.

If you choose Insurance Choice, you’ll benefit from:

●     UK-based call centres
●     Fully trained customer service team
●     A wide range of insurance products
●     Bespoke insurance quotes
●     Access to the best quotes on the market

Here at Insurance Choice, we’ve been arranging reliable, well-priced commercial insurance cover for over 20 years, so you can trust us to find you the best policy.

We also offer flexible payment solutions, so you can manage the cost of insurance easily alongside your other business outgoings.

Get a quick quote today.