Running a small business in London or elsewhere in the UK brings opportunity — but also significant risk: from customer injury, property damage, data breaches, lost income and employee claims. As a small business owner you may not have large financial reserves, so one unexpected claim or incident can threaten your business continuity.
Insurance tailored for small business owners provides a safety net, protecting your operations, assets and personal liability. At Fraser Bond we advise entrepreneurs, independent professionals and small firms how to structure their insurance so it aligns with their size, sector and London-specific risks.
Small business insurance is not one single policy but rather a portfolio of covers tailored to your business’s activities, size and exposures. According to UK guides, it provides protection against events that could cause financial loss, legal exposure or operational disruption.
Common policies include:
Public Liability Insurance – covers claims for injury or property damage by third parties.
Employers’ Liability Insurance – legally required in the UK if you have employees, covers employee injury or illness at work.
Professional Indemnity Insurance – covers advice or services you provide and claims for professional mistakes or omissions.
Business Contents / Equipment Insurance – protects your tools, stock, equipment, office assets.
Cyber / Data Liability Insurance – increasingly important for small businesses handling client data, online operations or working remotely.
Business Interruption Insurance – covers lost income or increased costs when an insured event stops or interrupts your business.
Small business owners in London face particular risk factors:
Higher costs for property, equipment and litigation mean claims can be more financially hazardous.
Operating in a dense urban environment increases risk of public interaction, foot-traffic, customer injury or property damage.
Many contracts, landlords, clients or venues require proof of insurance before engagement.
If you work from home, in shared spaces, or travel to client sites, standard home insurance may not cover your business exposures.
Small business owners often underestimate their exposures: a recent guide found many UK SMEs are underinsured.
Ensuring you have the right insurance is not just a precaution—it’s key to business stability, client credibility and legal compliance.
The cost of insurance for small business owners depends on factors such as: your business size, turnover, number of employees, type of activity, level of public interaction, equipment value, location (e.g., London), claims history and the limits/cover types you choose.
While premiums may start modestly for very low-risk businesses, even small amounts of cover can cost significantly if risk is elevated. According to comparison data, public liability cover for some small businesses can begin from around £5-£10 per month (or even less in very limited risk scenarios).
It’s important that you don’t simply choose the lowest premium—because if your cover is inadequate you could be left exposed.
Fraser Bond recommends the following steps for small business owners:
Map out your risk profile – What’s your business activity? Do you have clients on-site? Do you employ staff? Do you hold stock or high-value equipment? Do you handle personal or sensitive data?
Identify legal and contract obligations – If you have employees, you must have employers’ liability. If you work with clients/venues, they may require public liability or professional indemnity.
Choose covers that match your exposures – Not every business needs every policy, but you should match cover to your risk: e.g., a consultancy needs PI + cyber; a retail shop needs public liability + contents.
Review limits and policy wording – Are the limits sufficient for your risk? Are the exclusions acceptable? Does the policy cover work from home, mobile operations, or high-risk locations?
Compare quotes and providers – Don’t just look at price; consider insurer reputation, service, clarity of wording and claims history.
Regularly review and update – As your business grows, changes activity, adds staff or expands locations, your insurance needs evolve.
Keep documentation ready – Many clients or landlords will ask to see your insurance certificate; having it up-to-date helps your business appear professional and compliant.
Fraser Bond offers tailored advisory services for small business owners in the London market. Our expertise includes:
Helping you interpret insurance policy wording and ensure your cover aligns with your business model and risk.
Advising on compliance and client/contract requirements relevant to London-based firms.
Integrating insurance with your broader business strategy—asset protection, growth planning, risk management.
Supporting you as you scale, diversify or change your business focus, ensuring your insurance keeps pace.
If you are a small business owner in London or the UK and want to make sure you’re properly protected, please visit FraserBond.com or contact our advisory team to discuss your insurance coverage, review your risk profile and secure the right protection tailored to your business.
