Summary
- Match coverage to the actual services you provide.
- Employee insurance requirements differ between the US and UK.
- Compare exclusions and policy limits, not just the price.
Begin with your risks
A tradesperson working in a customer's home, a software agency handling personal information and a shop with walk-in customers need different cover. List your activities, contracts, premises, employees and the most expensive plausible mistake. Then get an insurer or broker to confirm what the policy actually covers.
Common types of cover
UK: employers' liability insurance is generally required if you employ staff, with limited exemptions. Check the current legal minimum and certificate requirements. US: workers' compensation requirements vary by state and workforce; other coverage may be required by a licence, lease or customer contract. Neither country's general liability policy automatically covers professional mistakes or every cyber loss.
How to compare quotes
Give every insurer the same accurate description of your work and turnover or revenue. Compare limits, deductibles/excess, exclusions, sub-limits, retroactive dates and claims conditions. Check whether subcontractors, work at height, installation, products or work abroad are covered if relevant. A cheap policy that excludes your main service is not a bargain.
Ask whether the policy is claims-made or occurrence-based. Claims-made cover may need continuous renewal or an extended reporting period when you change insurers. Keep copies of policies and certificates and tell the insurer when your services, headcount or locations change.
Before you buy
Read the policy wording rather than relying on a comparison-page summary. Confirm whether the contract you are signing requires a higher limit, additional insured status in the US or a particular form of professional indemnity in the UK. A licensed broker can help with unusual or high-risk work; obtain legal advice for contract-specific requirements.