How much is business insurance?

We make it easy for you to get policies and prices from trusted insurers, helping to ensure you get the cover that’s right for your business.

How much should my business insurance cost?

How much does business insurance cost? Find out more about how business insurance prices are determined, and how you can get insurance for your business.

There’s no straightforward answer to this question. All businesses - including yours - are unique, so there's no set price for business insurance.

This means we can't provide you with a definitive cost on this page – but we can tell you the three main factors that will affect how much you pay for your cover:

  1. Legal requirements – the law may dictate that you're required to have certain policies in place.
  2. Your attitude to risk – do you think your business could comfortably cope with unexpected costs? Are there any in particular you want to guard against?
  3. The insurer – all businesses present a potential cost to an insurer, so the likelihood that you'll need to make a claim will be assessed.

Let's look at these in more detail.

Legal requirements

The type of work you carry out and the setup of your business will determine whether or not you're obliged to purchase certain forms of cover.

For example, if you employ staff you'll almost certainly be legally required to purchase employers' liability insurance. Or, if you are a solicitor, you may be required by your regulating body to purchase professional indemnity insurance before you’re allowed to practice.

Your attitude to risk

Beyond cover you're obliged to have in place, you may also choose to protect your business from a number of other risks that you could be exposed to. You may want to purchase policies such as:

Naturally, the greater the range of cover you have in place, the more your insurance is likely to cost.

To help guide you when deciding what insurance you should be considering for your business, we've created the what business insurance do I need? tool.

The insurer

The level of risk that insurers assign to your business will depend on its setup and operations. For instance, if you own a busy restaurant, an insurer may consider you to be at high risk of public liability claims due to the high volume of customers that pass through your doors. This could increase your overall public liability insurance cost of your insurance package.

Some other factors your insurer may take into consideration are:

  • The value and security of your buildings
  • The value and security of your contents, stock, tools, or equipment
  • The location of your business premises - for example, if the local area is a crime hotspot, this could increase the cost of your insurance premiums
  • The likelihood and potential severity of any hazards your business is exposed to - for example, if your business premises is located in an area that is prone to flooding, this will impact the cost of your insurance.

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