Guide on business insurance

Having the right insurance helps protect your business from financial loss and disruption. The types of cover you need will depend on your operations, size, and structure — but there are several core policies that most UK businesses, especially those in the tech and professional services sectors, should consider.

🔍 Required Policies

Public Liability Insurance

Protects your business against claims from third parties (not employees) for:

• Bodily injury, or
• Damage to property

This cover applies when incidents occur in the normal course of your business -for example, if a client trips at your office or a contractor accidentally damages property during a visit.

Employers' Liability Insurance

If you operate through a limited company or employ anyone outside your immediate family, you are legally required to have Employers' Liability Insurance.

It covers claims from employees who are injured or fall ill due to their work. You must:

• Hold a minimum of £5 million in cover.
• Display your insurance certificate for staff to see.

🔗 GOV.UK: Employers’ Liability Compulsory Insurance

Professional Indemnity Insurance

Also known as PI insurance, this protects your business if a client claims they suffered financial loss because of your advice, design, or professional service.

It covers:

• Legal defence costs
• Compensation or damages awarded against you

Examples include:

• Incorrect tax or legal advice
• Software errors or implementation failures
• Missed deadlines leading to client losses

Business Contents Insurance

Covers your business assets such as:

• Computers, furniture, and office equipment
• Tools or materials used for your work

A standard policy protects against loss or damage caused by fire, flood, theft, or vandalism. For remote teams, check whether items used at home or in co-working spaces are included.

Product Liability Insurance

If you manufacture, sell, or supply products, this policy protects against liability for injury or property damage caused by those products.

This is particularly important if your business distributes physical devices, hardware, or tech equipment that could cause harm when used.

💡 Keyman Insurance

What It Is

Keyman insurance is a policy that protects a business against the loss of a key person — someone whose knowledge, skills, or leadership are vital to operations or revenue.

If that person dies or becomes critically ill, the company receives a payout to help fund recruitment, training, or stabilisation costs.

Why It Matters

For tech companies, this often includes founders, senior engineers, or lead developers. Losing them could disrupt product development or investor confidence.

Keyman insurance provides financial protection and can also help demonstrate sound risk management to investors or lenders.

🔗 HMRC Guidance: Keyman Policies

🛡️ Cyber Insurance

What It Covers

Cyber insurance protects your business against financial losses and liabilities arising from cyberattacks, data breaches, or system failures.

Typical cover includes:

• Incident response: Legal, forensic, and IT recovery costs
• Data breach costs: Compensation, notifications, and regulatory penalties
• Business interruption: Lost income due to downtime or ransomware
• Cyber extortion: Support if your systems are held to ransom
• Third-party liability: Claims from clients or partners whose data is affected

Why It Matters

For tech businesses and startups, the risk of a cyber incident is often higher than physical theft. Even a short disruption can impact client confidence, regulatory compliance, and cash flow.

Cyber insurance also provides access to expert response teams who can help contain incidents quickly — a major benefit for smaller businesses without in-house IT security teams.

🔗 National Cyber Security Centre: Cyber Insurance Guidance

✅ Summary

💡 Many of these policies overlap. For tech companies, a combined “Business or Tech Insurance” policy can be a cost-effective way to bundle these protections under one plan.