Insurance
Cover the risks that would actually end you.
Insurance jargon is designed to sell you more than you need. We break down what each policy actually pays out for, what it costs, and whether you're legally required to have it.
Most UK businesses are underinsured in two specific ways and overinsured in five. This hub explains which policies are legally required, which are non-negotiable for client-facing work, and which are marketing dressed up as protection.
| Cover type | Status | Typical cost |
|---|---|---|
| Public liability Covers injury or property damage to third parties — clients, visitors, or members of the public. | Often contractually required | From £60/year |
| Professional indemnity Covers claims that your advice, design, or service caused a client financial loss. | Required by most professional bodies | From £100/year |
| Employer's liability Covers injury or illness suffered by your employees in the course of their work. | Legally required | From £60/year |
| Business contents & equipment Covers theft, fire and damage to your stock, tools, tech, and fixtures. | Recommended | From £80/year |
Public liability
Often contractually requiredCovers injury or property damage to third parties — clients, visitors, or members of the public.
From £60/year · Any business that interacts with clients, customers, or the public in person.
Read the guideProfessional indemnity
Required by most professional bodiesCovers claims that your advice, design, or service caused a client financial loss.
From £100/year · Consultants, designers, accountants, solicitors, IT professionals, and anyone giving advice for a fee.
Read the guideEmployer's liability
Legally requiredCovers injury or illness suffered by your employees in the course of their work.
From £60/year · Every business with employees (with very limited exceptions for close family members).
Read the guideBusiness contents & equipment
RecommendedCovers theft, fire and damage to your stock, tools, tech, and fixtures.
From £80/year · Businesses with significant equipment, stock, or tools — especially if working from home or on the move.
Read the guideCommon questions
What do I actually need?
If you have employees: Employer's liability insurance is a legal requirement. You must have at least £5 million of cover and display your certificate. Fines for not having it start at £2,500 per day.
If you work with clients in person or on their premises: Public liability insurance is almost always contractually required. Most commercial clients, councils, and venues will ask for a certificate before you start work.
If you give advice, design, or create content for a fee: Professional indemnity insurance protects you if a client claims your work caused them financial loss. Most professional bodies require it.
If you have significant equipment, stock, or tools: Business contents insurance covers theft, fire, and accidental damage. Standard home insurance does not cover business equipment used commercially.
What you probably don't need
Insurance you can skip
Key person insurance is often sold aggressively to small businesses. It pays out if a key person dies or becomes critically ill. Useful for businesses with significant debt or investor obligations — not essential for most sole traders.
Business interruption insurance covers lost income if your business cannot trade due to an insured event (fire, flood). The COVID-19 disputes revealed how narrow most policies are. Read the exclusions carefully before buying.
Legal expenses insurance is often bundled with other policies. It can be useful for employment disputes, but check whether your existing policies already include it before paying extra.
UK Startup does not sell insurance and is not paid by any insurer. Prices quoted are typical 2025/26 market rates from Simply Business, Hiscox, AXA and Aviva. Always get multiple quotes and read the policy wording before buying.