Business commercial insurance in the UK is widely available from a variety of sources. So what should you look for in a policy?

The ingredients

• Public liability insurance

This kind of cover relates to claims made from third parties, arising from the contact your business has with the public. So someone could sue you for personal injury, or damage to their property. The claimant does not necessarily have to have been a customer. For instance, a visiting supplier who slips on your wet showroom floor could make a claim for personal injury. The damages award can easily run into tens of thousands of pounds, which is why public liability insurance should be considered seriously by all businesses.

• Employers’ liability insurance cover

Most employers are obliged by law to have adequate employers’ liability insurance. Ask your insurance provider whether your business falls into one of the few exemptions to this requirement. This cover relates to claims for accidents or illnesses that your employees could have sustained as a result of being in your employment. Examples may include repetitive strain injury and accidents in the workplace. As with public liability cover, the claims can be very high in value.

• Contents cover

You may have a warehouse or shop full of valuable stock, in which case the need for adequate contents cover will be easily apparent. But if you provide professional services with nothing tangible to make or sell, you will still have valuable contents sitting in your business premises that would be expensive to replace after a fire or flood. For example, most businesses rely heavily on computer systems, and have lots of office furniture.

• Buildings insurance

If you rent your buildings premises, the landlord is likely to be responsible for the insurance. However, if you own the building, insuring it is down to you.

• Business interruption insurance

If you business is interrupted due to an insured risk (e.g. fire), this cover can replace lost profits. This aspect of cover is not always provided as a standard part of business commercial insurance in the UK. Ask your provider whether it is available to you.

What service will you receive?

When you have a number of quotes to compare, check the level of service you will receive. For example, are the staff experienced in helping you find the right cover? How many hours a day are they available – is there a 24 hour claims line?

The price

The price of business commercial insurance UK cover is usually based on a combination of the level of turnover your business enjoys, coupled with how risky it is. When you are comparing prices, consider also whether you are permitted to spread the cost by monthly direct debits, or whether the policy has an unrealistically high excess. After all, there is no point having a cheap policy if you have to incur thousands of pounds worth of loss yourself before you can claim.