How to Choose the Right Covers & Limits for Your Business

CALL FOR EXPERT ADVICE
GET A QUOTE NOW

Not sure which insurance covers you need, or how much protection is enough? Use this simple guide to understand key sections, set realistic limits and build the right commercial combined policy for your business.

CALL FOR EXPERT ADVICE
GET A QUOTE NOW

We compare quotes from leading insurers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

BUILDING THE RIGHT COMMERCIAL COMBINED POLICY

A Simple Framework for Choosing Covers & Limits

Every business is different - but the process of choosing the right insurance follows the same logic: identify your biggest risks, understand legal and contractual requirements, and then set realistic limits based on worst-case scenarios. This page explains how to do that step-by-step.

Step 1: Decide Which Covers You Actually Need

Start with the essentials, then layer on additional protections specific to your operations.

  • Employers’ Liability – legally required if you employ staff.
  • Public Liability – protection if third parties are injured or their property is damaged.
  • Product Liability – if you sell, supply or manufacture products.
  • Buildings Insurance – if you own the premises.
  • Contents & Stock – for equipment, fixtures, inventory and stock.
  • Business Interruption – to protect income after an insured event.
  • Cyber & Data Risk – if you hold client data or take payments.
  • Professional Indemnity – where you provide advice or design.
  • Tools, Plant & Equipment – for trades and contractors.
  • Legal Expenses – for contract disputes, employment and regulatory issues.
CALL FOR EXPERT ADVICE
GET A QUOTE NOW

Step 2: How to Set the Right Limits

Think in terms of realistic worst-case scenarios, contractual obligations and regulator expectations.

Property & Stock Limits

  • Use full rebuild value for buildings, not market value.
  • Include fixtures, fittings, machinery & specialist equipment.
  • Base stock sums insured on peak levels, not average.
  • Account for seasonal / promotional stock spikes.
  • Consider replacement cost, not book value.

Liability & Business Interruption Limits

  • Check customer contracts for minimum liability requirements.
  • Consider the scale of work and potential injury/claim costs.
  • For BI, estimate how long it would realistically take to recover.
  • Use gross profit or revenue to set appropriate BI limits.
  • Review annually as your turnover and headcount grow.
CALL FOR EXPERT ADVICE
GET A QUOTE NOW

Step 3: Match Cover to Your Risk Profile & Industry

Different sectors face very different exposures - your insurance should reflect that.

Lower-Risk Examples

  • Offices, consultants & professional services.
  • Small retail units with limited footfall.
  • Light warehousing and storage.
  • Lower hazard manufacturing & assembly.

Higher-Risk Examples

  • Heavy industry, fabrication & engineering.
  • Construction, contractors & trades on-site.
  • Businesses with hazardous materials or high-value stock.
  • Operations with significant public footfall or mass events.
CALL FOR EXPERT ADVICE
GET A QUOTE NOW

Why Get Advice When Choosing Covers & Limits?

  • Avoid under-insurance that could reduce claim payouts.
  • Ensure you meet contractual and legal obligations.
  • Tailor your policy to your actual risk profile.
  • Save money by avoiding unnecessary cover.
CALL FOR EXPERT ADVICE
GET A QUOTE NOW

FREQUENTLY ASKED QUESTIONS

+ -

How do I know which covers are mandatory?

In the UK, Employers’ Liability is a legal requirement if you employ staff. Certain regulated sectors may have additional compulsory requirements, and client contracts often specify minimum liability and PI limits.

+ -

What happens if I underestimate my sums insured?

If you are under-insured, insurers may apply “average” to a claim, meaning only a proportion of the loss is paid. It’s important to use realistic rebuild, replacement and stock values.

+ -

How often should I review my covers and limits?

At least annually, and whenever there is a major change - such as moving premises, taking on larger contracts, hiring more staff or investing in expensive new equipment.

+ -

Can I change my limits mid-term?

In many cases, yes. If your risk profile or contract requirements change, limits can often be adjusted mid-term, subject to insurer acceptance and premium adjustment.

+ -

Can you help me review my current policy?

Yes - Insure24 can review your existing cover, identify gaps, and recommend appropriate covers and limits for your sector and size of business.

Related Blogs