8 November 2019
Small Business Insurance: Do I Need It?

Small Business Insurance: Do I Need It?

Small business insurance is available in several different types of policy, and depending on the scope of your business, and is reflected in three main categories: public liability, employers’ liability, and professional indemnity.

It can be tempting to leave small business insurance off your list of things-to-do when you first open up shop or begin running a brand new business. The day-to-day running of a business comes with its own series of things to do, some are more important than others, and what is small business insurance anyway? Is it really that important?

Yes, it is. Firstly because if you’re an employer, then employers’ liability insurance is a legality in the UK. Professional Indemnity insurance isn’t a legal requirement but may well be a requirement of a regulatory body for your industry. So, understanding the basics from the beginning is essential to success in your business venture.

Making the most of small business insurance:

Risk assessment

Whilst health and safety may seem like a tick box exercise, it’s essential when running a  business, and therefore when searching the market for business insurance. What is the risk to your business and how can this be adequately managed? The answer will likely always be public liability insurance, as it can save you from a rather large financial headache if something were to happen as a result of your business practice.

Having full and comprehensive small business insurance too helps customers to make their decision as to whether they will buy your product or service. If it’s clear that you are fully insured, if something were to go wrong, they can live in the knowledge that you are fully covered for any eventuality.

Review business practice

Each month, quarter or year, businesses change their strategy, increase or decrease staffing levels, or change something substantial operationally. Often, the biggest downfall of these quite significant business changes can result in businesses not being adequately insured.

This can be as they’ve employed more people, making their current policy null and void, or because their operations no longer suit the policy they previously acquired. The best way to avoid this scenario is to conduct full business audits when looking for new business insurance.


Don’t just insure your business purely based on the price of the premium. Sure, you need to be mindful when it comes to business operational costs as with every cost in a business, they add up. Though, without being cautious of what you’re actually insured for on a quote (which offers ‘competitive pricing’), and focusing solely on price, the cost can actually add up to way more than the most expensive insurance quote.

Types of small business insurance which can be arranged by Peacock:

  • Employers Liability Insurance: this covers the cost of compensation claims that could arise from employee illness or injury caused by their working for you.
  • Professional Indemnity: covering losses caused by defective work or financial loss as a result of your business.
  • Public Liability: covers the event in which somebody outside your company gets injured or their property is damaged because of your business.


Insurance for use by traders:


    • Business/commercial vehicle insurance: this is imperative for any business that uses a vehicle for their job. This can pertain to people who drive their own car for their job, or a vehicle used by the business and its employees solely for business use.


    • Tools cover: this is mostly applicable to tradespeople (but can extend itself to equipment insurance which is useful in shops or cafés, for example).


  • Goods in Transit: for frequent movers this is essential. Perhaps you’re a moving company or a courier with goods in transit most of your working day then you’ll need to make sure you’re covered for all eventualities.

Do you need an insurance solution to suit your small business? Contact our team of experts today.

The information contained in this blog is accurate and compliant at the date of publishing on 27/11/2019