Your Guide To Business Insurance

Business Insurance may sound like a complicated term, but when it comes down to it, it’s actually pretty simple. Combining a whole host of key covers such as Employers’ Liability, Public Liability and Business Insurance, it can protect you from unexpected events that could end up costing you thousands. In our latest guide, we take you through the ins and outs of this policy – what it is exactly, what it can cover and the pros and cons of it, as well as the types of businesses that could benefit from it. And if you have any further questions, we’d be happy to help in any way we can. Simply get in touch with us and we can offer even greater insight.


What is business insurance?

Business Insurance is cover in one single policy that comprises a range of key covers. Falling under policies such as Hair & Beauty Insurance, Shop Insurance, Tradesman Insurance and Restaurant Insurance, can be cover including: Public Liability, Employers’ Liability, Personal Accident Insurance and Business Interruption Insurance, as well as Stock Insurance, Seasonal Increases and Warehouse Insurance – for example. Designed for a whole host of businesses such as hotels, beauty salons, offices and retail establishments, these insurance policies can provide protection from unexpected events, and be tailored to your unique range of business requirements.

Offering the convenience of having a single policy to manage various insurance requirements, you can also benefit from one monthly cost, minus any extra liability expenses. With flexibility to remove or add on cover – such as Professional Indemnity and Contract Works – your policy can change as your business expands or diversifies.

By including a range of insurance policies under one policy, it also makes the claims process, as well as the renewal process, much easier. A Business Insurance policy means you only have one policy to deal with, and one renewal date to remember. You don’t want to have to spend long hours administrating various insurance covers and policies for different aspects of your business, and with this cover, you don’t have to.


Which businesses is this insurance policy for?

At The Insurance Octopus, we can offer various business types a suitable insurance policy, and this includes everything from beauty salons, barbers and restaurants through to hotel chains, coffee shops and contractors, as well as cafes, newsagents and offices. Along with pizzerias, florists and spa hotels, there are many businesses that could benefit from this type of insurance policy.

Other Examples Of Businesses That Could Benefit:

Looking for a Business Insurance policy, but are unsure whether your company is suitable? Why not give The Insurance Octopus a call today on 0161 968 2060 to help determine this, and for your own Business Insurance quotes too.

What does business insurance cover?

From Shop Insurance, Restaurant Insurance and Tradesman Insurance through to Hair & Beauty Insurance, Hospitality Insurance and Office Insurance, there are various types of Business Insurance around. The common policies that they all can share include:


  1. Product Liability: Covers businesses against any harm caused by the products you sell, whether that’s food, drink, toys, shampoos or anything else that you distribute or manufacture. It’s important to note that you could also be held liable for any harm caused by products that have your company’s name, logo, or business details printed on it. Compensation could pay for hospital fees and medical costs, providing damages where appropriate. 
  2. Public Liability Insurance: Public Liability Insurance as part of your Business Insurance policy covers you against public claims of bodily injury, accidental damage to personal belongings, costs of medical treatment and where insured, cases related to trespassing and interference.
  3. Employers’ Liability Insurance: It is a legal requirement in the UK to have employers’ liability insurance if you have any staff. This cover protects them from loss or injury while carrying out any work for you. If you have any full or part time staff, volunteers, interns, contracted or freelance workers, it’s your responsibility to have the correct cover in place. Employers’ Liability will pay damages and associated legal costs in respect of death, disease or illness caused to employees, so that they are taken care of, as are their families. Our Employers’ Liability comes with £10m as standard, ensuring your staff, and your business are covered.
  4. Business Interruption Insurance: With an estimated 43% of Business Interruption policies thought to be underinsured by more than 50% (according to a Chartered Institute of Loss Adjusters report), making sure you have the right protection in place is important. This cover insures your business should it need to close – for example, due to a fire or flood. At The Insurance Octopus, we can cover you for: Loss of gross profit or gross revenue and/or increase cost of working following damage to your business premises; Loss of book debts following damage to accounting records at your business premises. Subject to certain limits, extensions can include: contract sites; denial of access; bomb scares; unspecified customers; unspecified suppliers.
  5. Personal Accident Cover: With Personal Accident Insurance as part of your Business Insurance quote, you’ll typically be compensated for the following: death; loss of limb or loss of eye; permanent total loss of speech; permanent total loss of hearing in both ears; permanent total disablement from gainful employment of any and every kind; temporary total disablement. Extensions to Personal Accident Insurance can include: medical expenses; coma benefit; commuting expenses; hospitalisation; counselling.
  6. Legal Expenses Insurance: This cover, also known as business legal protection insurance, covers your commercial legal expenses and provides protection against the potential costs of legal action brought by or against your business. This policy type can cover: disputes with your past, present or prospective employees, and the cost of legal claims relating to property damage, nuisance or trespass. It could also include a tax advice helpline, a 24/7 confidential legal helpline, and crisis PR support to help you deal with negative publicity and avoid damage to your brand’s reputation. Beyond this, Legal Expenses Insurance covers court dates, trials and representation.
  7. Loss of Money: Almost all businesses handle money in some form – cash, cheques, credit card slips and bankers’ drafts, making this form of insurance essential for businesses large and small. Whether you lose £500 or £5000, loss of money can hinder your performance, and negatively impact how well you do business. Therefore, Loss Of Money cover ensures that you’re insured against these losses to maintain your financial stability, minimising the disruption caused. We can provide cover for: money stolen during business hours; money stolen while in a bank night safe; money stolen while locked in a safe while your shop is closed; money stolen while not in a locked safe while closed; and money stolen while in transit.

Beyond this, there are lots of other great cover that could be included within your policy, such as:

  1. Tools and Business Equipment Insurance: From drills, hammers and lawnmowers through to pliers, hammers and blow torches, the cost of replacing or replacing key tools can certainly be expensive. Covering against loss, theft and accidental damage to your tools, this can also apply to equipment such as laptops and smartphones that are key to operations.
  2. Own Plant & Hired In Plant: Own Plant Insurance protects against damage done to own plant, and cover is provided up to the sum insured shown in the quotation or schedule. You can receive compensation for the reinstatement value for damaged contractors’ plant that is up to one year old, otherwise, you can receive the market value or the cost of repair. Hired In Plant Insurance protects you against the legal liability for any damage done to hired in plant and any continuing hire charges.
  3. Portable Equipment Insurance: Most suitable for hotels, restaurants, cafes and pubs, this cover can protect equipment such as coffee makers, toasters, blenders, kettles and coffee brewers, as well as underbar sinks, undercounter refrigerators and lamps. Providing compensation for accidental damage and theft, you can replace your portable equipment in no time at all, ensuring that your service level is always high.
  4. Fixtures & Fittings: We know that your hotel, restaurant or cafe reflects who you are, and the clientele you’d like to attract. Design, room layout and window furnishings add character, as do the curtains, cushions and seating found within your premises. Fixtures & Fittings Insurance can protect them from any loss or damage done to them, so that the expense isn’t yours.


Business Insurance can also include Stock & Contents Cover, Seasonal Increases Insurance and Business Building Cover, as well as Professional Indemnity Insurance, Cyber Insurance and Material Damage Insurance. It’s important that with all policies that you check the specific terms and conditions outlined so that you know the exact cover you have, and not be left with any nasty surprises when you need the cover the most.


Pros and cons of business insurance

Business Insurance offers many benefits, including:

  • Under one handy policy, can protect businesses from risks such as Employers’ Liability, Product Liability and Public Liability, as well as covering them against Business Interruption, Material Damage, and damage to stocks and contents.
  • Policies can be tailored to the size of your business, the number of staff, your industry, business operations, and location. They can be as bespoke as your business is, ensuring that all unique aspects are covered.
  • Offers simplicity. Instead of dealing with 10 different companies or 10 different policies, you deal with one company, and one policy. This saves time, hassle and makes your insurance easier to manage.
  • Provides cost savings. It’s often cheaper to combine all your insurance needs into one policy as it often attracts bulk discounts from your insurer. This makes it cheaper than having multiple, individual policies. 


In terms of things to consider when it comes to Business Insurance:

  • It’s another expense. This policy costs money, and it is quite likely that you may not ever use all of it. However, when you consider potential compensatory costs, as well as repairs and replacement costs, it pales in comparison.


Your business insurance questions answered

Do I need Business Insurance?

If you operate, manage or run some kind of business, then regardless of its size, industry or type, then you do need some form of Business Insurance. No matter the company, things can unexpectedly go wrong – equipment can break, accidents occur and people sue. Hefty compensation claims can damage more than just your reputation – could you afford to pay out thousands, possibly hundreds of thousands if it came down to it? Business Insurance can offer protection against claims brought about by employees, members of the public and even the businesses you work with – such as distributors and manufacturers. Beyond this, it can pay for replacements and repairs for any damages done to key equipment and the business premises. 


What type of Business Insurance do I need?

When deciding on the types and levels of business insurance you need, you’ll need to think about the kind of work you do and the risks you are likely to encounter. For example:

  • Do you have stock to insure?
  • Do you have buildings to insure?
  • Do you have general business equipment and contents to insure?
  • Is there a high chance of employees getting injured on the job?
  • Could customers or clients be injured?
  • What are the chances of facing a compensation claim for negligence?
  • How is your business affected by weather and climate conditions?

When you’ve answered these questions, you’ll have a greater understanding of the precise policies you need, such as Contents Insurance, Buildings Cover and Stock Cover.


What is Business Liability Insurance?

Liability insurance helps cover the cost of liability claims made against your business. Two of the most popular types of liability insurance are General Liability and Professional Liability. General liability insurance covers the costs of claims made against your business for property damage or bodily injury. Professional Liability Insurance helps cover the costs of claims that your business made a clerical error committed errors or omissions in the services and products you provided.

Get In Touch With The Insurance Octopus

Regardless of whether you run a hotel, cafe, office or own your own tradesman business, a Business Insurance policy can help to keep it protected. We hope this guide has helped shed light on any aspects of the policy you were unsure about, and if you’d like one yourself, we can help. We encourage you to get in touch with us today on 0161 968 2041 for your bespoke Business Insurance quotes.