What is business insurance?

For the most part no, the law does not require you to have business insurance. One exception to this is employers' liability insurance which is a legal requirement for any business with employees, whether full time, part-time, or temporary.

The business insurance you need is entirely dependent on what your business does and the risks it therefore faces.

Certain business covers are popular, such as public liability insurance, which provides protection for compensation claims and legal costs relating to someone getting injured or their property damaged due to your work and professional indemnity insurance, which provides protection for compensation claims due to financial damage caused by your professional services or advice.

An increasingly popular cover is cyber liability which protects you from a host of issues that affects the data you hold and the computers you use. From paying ransoms to hackers to decrypt your data or reimbursing you for lost revenue as a result of a cyberattack, cyber insurance is a great cover to add to any business, and it’s cheaper than you may think. Cover starts at £10.79 a month and gives you the peace of mind to operate your business in an increasingly online world.

Other covers are a little more niche as they’re relevant to more specific business activities. An example is media liability insurance, which concerns things like copyright infringement, which is especially relevant to businesses posting media or advertising content - which is actually more than you may think these days, particularly with the use of social media.

To read more, check out our in-depth guide on the types of business insurance, including questions to ask yourself to decide which is right for you.

The cost of your business insurance will depend on the covers you need and the limit you select for each cover. The limit of cover is the maximum amount the insurer will pay in the event of a claim. Cover with Superscript starts at £5 a month, for public liability insurance at a limit of £2 million. Note that our public liability insurance includes product liability cover.

How much business insurance you need is largely up to you. You may find that if you’re a member of a professional body or trade association, the organisation will require you to have a specified level of cover. Or perhaps if you’re considering working with a client, or at an event, you’ll be required to have a certain level of cover as set by the client or event organiser.

Find out more by reading our article on where to start with business insurance.

Most business insurance providers offer cover as an annual policy, which lends itself to businesses reviewing their cover yearly, however a year is an arbitrary amount of time. For some businesses, lots will change from month to month. For others, things may stay much the same for years.

A better way to think about your business insurance review process is to remember to assess your insurance situation when you know something has — or is about to — change.

Situations that may prompt you to review your cover include:

• You’ve hired new employees
• You’ve started to offer new services
• You’ve purchased new equipment
• You’ve secured a major contract
• You’re undergoing a round of funding

With Superscript you have the flexibility to pay for your insurance monthly or yearly, depending on what works best. You can also amend your policy any time, without fees, so you can keep your cover up to date as your business changes during the policy period.

Read our tips for making a successful business insurance claim.