The best UK small business insurance

Business insurance is an essential protection, but with hundreds of insurers and insurance brokers, how do you find what’s best for your business? As well as getting the cover you need, at a competitive price, you want to be confident that if the worst comes to the worst you’ll be able to make a successful claim to put things right

**Note information correct on 13/01/25

There isn’t a one-size-fits-all solution for every business. Our guide highlights the key options that are available to you, helping you choose between using a comparison platform, insurance broker or going direct. It also gives quick reviews of some of the best-known business insurance providers.

Business insurance comparison platforms

Using a comparison website is a quick and easy way to find and compare different business insurance offers. Comparison sites are a particularly good option if you know what insurances you want and are running a relatively common type of business.

Legally, comparison platforms are insurance brokers (see below). But unlike more traditional insurance brokers, they aim to offer a self-service, online experience. Getting quotes and buying insurance can take as little as a few minutes. Even if you decide not to buy insurance straight away, a comparison site can be a good starting point – giving you an idea of what is available and what you can expect to pay.

All the main comparison platforms work with leading insurers in the UK, and provide a claims service to help manage any claims you need to make.

Simply Business

• Insurance for small businesses and landlord
• The market leader, with nearly 1 million customers
• Online quotes for hundreds of different types of business in minutes
• Online knowledge centre and optional phone support (0333 0146 683) also available
• As well as its own website, powers the business insurance comparison for sites such as Go.Compare and NerdWallet
• Excellent Feefo service rating 4.7/5

PolicyBee

• Insurance for small businesses and not-for-profits
• Online small business insurance broker since 1998, with over 70,000 customers annually
• Particularly quick online quoting for different business types
• Online guidance (including not-for-profit insurance hub) and optional phone advice line (0345 561 0320)
• Exceptional Feefo service rating 4.9/5

Business Compare

• Wider insurance offerings: business, van/fleet and property
• Online insurance platform from broker Business Insurance Solutions
• More cost-focused price comparison site
• Limited online guidance, but optional phone contact (0333 202 6240)
• Reviews.io rating 5/5

Business insurance brokers

Like the comparison sites, insurance brokers make it easy to identify and compare offers from multiple insurers. But although you might initially contact an insurance broker online, and provide some initial information, the process inevitably involves phone contact.

That makes it a slower process, but also gives you the opportunity to provide information and discuss requirements in more detail than is allowed by the online templates of comparison sites. This can be particularly helpful if you are unclear about what insurance you should be getting, or have a business which is unusual in some way – for example, not fitting neatly into a well-known type of business.

Although insurance brokers need to generate an income for themselves, this does not necessarily mean that using a broker will be more expensive than going direct to an insurer. Insurance providers are often able to negotiate lower prices, as the insurer avoids the costs of dealing directly with small businesses. Using an insurance broker also helps you get access to a wide range of offers, as some insurers choose not to deal directly with small businesses at all.

With so many brokers to choose from, recommendations can be a good starting point while some businesses prefer to work with a local broker. You can also use find insurance brokers through the British Insurance Brokers Association (0370 950 1790).

Notable insurance brokers include:

• Towergate Insurance. Offers both personal and business insurance, but with a strong reputation for dealing with specialist requirements. For example, if you have non-standard business premises, or provide services that present particular risks.
• The Federation of Small Businesses. Small business insurance service offered as a member benefit, with free insurance advice line (whether you purchase insurance or not).

Business insurers

Rather than working with brokers, some insurers sell directly to small businesses, or work with agents who sell their policies. Unlike an insurance broker, who acts on your behalf to find the best insurance offer, an agent may only sell policies from one insurer (or a small number of different insurers).

Buying direct or through an agent (for example, your bank may offer small business insurance) can be a quick and easy option, particularly if you know what you want.

Buying insurance direct, or through an agent, means that it is up to you to find the best offer and to make sure that the cover being offered suits your needs. It can also mean that it’s up to you to make any insurance claim yourself. Even if you are buying through a broker, you may want to satisfy yourself that the insurer being recommended has a good reputation for dealing with claims quickly and sympathetically.

Notable UK small business insurers include:

• Axa. Cover for freelances, sole traders and businesses with up to 12 employees. Insures over 850,000 businesses. Feefo rated excellent 4.6/5.
• Direct Line. Direct insurance specialist, guarantees to beat competing quotes for new customers. Trustpilot rated excellent 4.6/5.
• Hiscox. Insures over 400,000 businesses from sole traders to companies with over 100 employees. Feefo rated excellent 4.7/5.
• Markel Direct. Specialist online insurer with over 200,000 UK small business and not-for-profit customers. Feefo rated excellent 4.7/5.