Estimate the cost of essential business insurance in the UK. Enter your business type, turnover and number of employees to see estimated premiums for public liability, professional indemnity and employers liability.
| Cover Type | Est. Annual | Legal Requirement? |
|---|
Business insurance premiums vary significantly by profession, claims history, specific activities and insurer appetite. Always get quotes from specialist business insurers or brokers. Employers Liability insurance is a legal requirement — failure to have it carries fines of up to £2,500 per day.
UK businesses face several insurance obligations, one of which is a legal requirement. Employers Liability (EL) insurance at a minimum of £5 million is compulsory for any business that employs anyone (including family members in most cases). Failure to have EL insurance can result in fines of up to £2,500 per day. Public liability and professional indemnity are not legally required in most sectors but are commercially essential.
| Insurance Type | Legal Requirement? | Minimum Cover |
|---|---|---|
| Employers Liability | Yes — if you employ anyone | £5M minimum |
| Motor Insurance (business vehicles) | Yes — for any business vehicle | Third party minimum |
| Professional Indemnity | Required by many professional bodies and clients | Varies by profession |
| Public Liability | Not legally required (exc. some licensed activities) | £1M–£5M recommended |
| Buildings Insurance | Required by mortgage lender if mortgaged | Full rebuild value |
Essential for most UK businesses: Employers Liability (legally required if you employ anyone, minimum £5M), Public Liability (£1-5M, essential if you interact with customers or public), Professional Indemnity (essential for any advice-giving service). Additional: business contents and equipment (protect assets), business interruption (covers lost income if you cannot trade), cyber insurance (for data-holding businesses). A freelancer/sole trader with no employees only legally needs EL if employing others, but PI and PL are strongly recommended.
For a sole trader consultant or freelancer: Professional Indemnity (£500k cover) typically £200-500/year; Public Liability (£2M) typically £100-300/year; combined PI + PL package from £300-600/year. IT and financial services tend to cost more. Trades with physical risk cost more for PL. The total is typically 0.3-1% of annual turnover for most professional service businesses. Compare via specialist business insurance comparison sites (Simply Business, Superscript, Direct Line for Business).