Business insurance: what cover does your trade actually need?

There is no single business insurance policy that suits everyone. A plasterer, a corner shop and a management consultant face very different risks, so they need very different cover. The trick is to buy the protection your trade genuinely needs, without paying for cover that does nothing for you.

The core covers most businesses consider

A handful of covers come up for almost every business. Understanding what each one does makes it far easier to see which ones apply to you.

Public liability

This covers claims from customers, clients or members of the public who are injured, or whose property is damaged, because of your business. For example, a customer trips over your tools on site, or a visitor is hurt in your shop. It is not a legal requirement, but many clients and contracts will insist on it before they will work with you.

Employers' liability

If you employ staff, this is usually a legal requirement, not an option. It covers claims from employees who are injured or made ill through their work. Under UK law most employers must hold at least the minimum cover, and you can be fined for each day you do not. The government sets out the rules on the gov.uk employers' liability page. If you take on even one member of staff, check this first.

Professional indemnity

This covers you if your advice, designs or professional services cause a client a financial loss. It matters most for businesses paid for their expertise, like consultants, accountants, architects and marketing agencies. If a client claims your work was negligent or wrong, this cover handles the defence and any compensation. You can see how these fit together on our business insurance page.

Protecting your premises and income

Two more covers deal with the physical side of your business and what happens if it stops.

Commercial property and contents

This covers your buildings, if you own them, along with stock, equipment, tools and fit-out, against risks like fire, flood, theft and accidental damage. A shop with a floor full of stock and a tradesperson with a van full of tools both have a lot to lose here, even though the contents look very different.

Business interruption

This covers the income you lose when an insured event stops you trading. For example, if a fire shuts your premises for three months, the property cover pays to repair the building, but business interruption cover replaces the revenue you could not earn while the doors were closed. It is easy to overlook, and expensive to be without.

What different trades actually need

The same covers matter to different degrees depending on what you do. Three quick examples show how the priorities shift.

A tradesperson

A builder or electrician usually puts public liability first, because they work on other people's property and around the public. If they employ anyone, even a single apprentice, employers' liability becomes a legal must. Tools and equipment cover protects the kit in the van, which is often a target for theft.

A shop

A retailer leans on commercial property and contents cover for the premises and stock, and public liability for customers walking through the door. If there are staff on the till, employers' liability applies. Business interruption matters too, because a shop that cannot open is a shop with no income.

A consultant

A consultant or adviser often has no premises and no public foot traffic, so professional indemnity is the priority, because their risk is being sued over their advice. Public liability may still be needed if they visit client sites, and employers' liability applies the moment they hire.

Just B2B compares insurers, we are not one

To be clear, Just B2B is a broker, not an insurer. We compare business insurers across our panel and package the cover your trade actually needs, then you deal with one point of contact rather than filling in the same details ten times over. We are paid a commission by the insurer you choose, and we will always say so. Tell us your trade and we will point out the covers that matter and the ones you can safely skip. Start on our business insurance page.

The bottom line

Buy for your trade, not for a template. Public liability protects you against claims from the public, employers' liability is a legal must the moment you hire, and professional indemnity covers advice and services. Property, contents and business interruption protect what you own and the income behind it. Just B2B compares insurers rather than selling its own policies, so the cover is matched to your risk. For more, read more articles.