Startup Insurance
Specialist business insurance for startups, from only £3.14 per month.* Get an instant quote online.
- Public Liability included
- Join over 180,000 customers**
- Over 3,000 5* reviews
From £3.14* a month
What does startup insurance cover?
Starting a business comes with plenty of excitement — and risk. Startup insurance helps safeguard your venture from unexpected claims and financial setbacks, giving you the confidence to grow.
Whether you’re offering a service, working hands-on with clients, or running a small operation from home, you can build a policy that suits your activities. Core liability protection comes as standard, and you can add optional extras like business equipment cover, employers’ liability, or additional legal support as your business develops.
Our flexible cover works for sole traders, freelancers and small teams, especially if you provide more than one service. That means you only pay for the protection that matches your business today, with the option to adapt as you scale.
Cover may vary depending on your trade or profession. Get a quote to see the full range of options available for your business.
Make sure you have the correct insurance for your activities and be sure to check if any exclusions are relevant to what you have planned in policy documentation.
Public Liability
Professional Indemnity
Employers' Liability
Business Equipment
Public Liability Insurance
- Protection from claims by a third-party who sustains injuries or has their property damaged, whereby you or your business is responsible.
Professional Indemnity Insurance
- This protects you from damages caused by your mistakes, errors, or negligence in your professional work, including those made by your employees, if you have the correct employers’ liability insurance.
Employers’ Liability Insurance
- Protection from claims against employee incidents if someone suffers a work-related injury and brings a claim against you.
Equipment Insurance
- Protection against theft, loss and accidental damage, allowing you to replace items to the value you select. For the tools and equipment, you rely on to earn a living.
Stock
- If your stock is lost, damaged or stolen, it can be covered up to the value you select.
Legal Expenses Insurance
- An option to include cover for employment, property and contract disputes, as well as health and safety appeals, jury service, court attendance and licence protection.
Cover may vary depending on your trade or profession. Get a quote to see the full range of options available for your business.
We provide tailored policies for a range of service sectors including pet care, hair and beauty, manual trades, events, and fitness. That way, you only pay for cover that’s relevant to your work.
Public Liability for tradesman
Protection against claims from third parties (e.g., a member of the public) who suffer injuries or have items of their property damaged due to your actions. This does not include third-party property that forms part of the working contract site.
Claims for damage to property that is part of the construction or worksite itself are excluded under public liability. For instance, if the contractor is working on a site owned by someone else and the property forms part of the construction project, such damage would not be covered by this insurance. However, this can be included by adding Contract Works cover.
Cover may vary depending on your trade or profession. Get a quote to see the full range of options available for your business.
Employers’ Liability
- Up to £10 million available.
- If any employee suffered physical injury or a fatality because of the employer’s negligence. If that staff member sought compensation, the insurer would handle the cost of the claim.
- If you employ any staff members, Employers’ Liability is a legal requirement.
Contractors Works
- Up to £250,000 worth of cover
- This cover can protect you against loss or damage to any permanent or temporary works you’re responsible for, including all the materials.
Plant & tools hired
- Up to £50,000 worth of cover.
- Covers you for loss of or damage to, hired tools and equipment, temporary buildings, caravans, or similar that you have hired in connection with any contract works being undertaken by you.
- Cover also includes your legal liability for hiring charges following damage to any hired property.
Plant & tools owned
- Covers your tools and equipment, temporary buildings, caravans, or similar on-site that are owned by you and used in connection with any contract works being undertaken by you.
- Covers your tools and equipment off-site if locked in an unattended vehicle. This is only available as an extension of plant & tools owned cover and covers your own portable tools, including power driven portable tools and business equipment, when kept in a locked vehicle and left unattended.
Employees tools & personal effects
- This covers tools and personal items owned by your employees while on any site, or those you’re responsible for under a joint working agreement.
- It’s not available as a standalone cover but comes with either Contract Works or Owned or Hired Plant & Tools cover, with protection up to £500.
Financial Loss
- Protection from claims from other parties relating to financial losses not directly consequent upon bodily injury or damage.
- Cover for bona fide subcontractors, who should have their own insurance.
- Claims for financial losses relating to non or late delivery of products to third parties.
For information on exclusions in your cover please refer to policy documentation.
Why do new businesses need insurance?
Startup insurance is a smart way to manage risk from day one. It can help you meet legal obligations, while protecting your young business, the people who work with you, and the tools or assets you rely on. With the right cover in place, you’ll have support when the unexpected happens — so you can stay focused on growing.
Even when you operate responsibly, accidents and misunderstandings can occur. Our specialist startup insurance is built to help shield you from claims linked to unforeseen events. Here are a few examples of situations where a claim could arise:
Public Liability
Public liability protects you if someone is injured or their property is damaged because of your work.
Accidents can happen in any new business — a customer might trip over your business equipment, or you could accidentally damage something while working on-site. Even minor issues can turn into costly claims. Public liability cover helps protect your startup from these expenses, supporting both your finances and your reputation.
Employers' Liability
If you employ staff, even part-time, temporary, or casual workers, this cover is a legal requirement.
If you hire staff, there’s always a chance someone could become injured or unwell due to their work — and they may hold you accountable. Employers’ liability insurance helps protect your startup by covering the cost of these claims. It’s also a legal requirement for most businesses, and failing to have it in place could lead to fines of up to £2,500 per day, as well as significant compensation costs.
Professional Indemnity
If your business provides advice, designs, training, or services, mistakes can be costly.
If your advice or work doesn’t go to plan, a client could face financial loss and make a claim against you. Professional indemnity insurance helps protect your startup in these situations, covering claims of negligence, errors, or poor guidance that might otherwise lead to serious financial consequences.
Business Equipment cover
Your tools, kit, or stock are often essential for earning a living.
Whether you’re travelling for work, visiting clients, or storing tools at home, your business equipment is always at risk of being lost, damaged, or stolen. Replacing essential items can be costly — and delays can impact your ability to earn. Business equipment insurance helps your startup get back on track quickly, minimising disruption and keeping your business moving.
Our experts explain why...
“Startup insurance gives you vital protection against a wide range of risks — from liability claims to financial losses involving third parties. Without the right cover, these issues could have a serious impact on your finances. With our startup insurance in place, you can concentrate on building your business, knowing you’re supported if the unexpected happens.”
Chris Trotman, Protectivity Underwriting Manager
How much does startup insurance cost?
At Protectivity policies start at just £3.14* a month.
The cost of startup insurance can vary depending on several factors, for example, if you employ staff then your policy will need additional cover in employers’ liability, at a higher cost.
Investing in specialist business insurance is not just about protecting you from financial losses. It’s a small price to pay to provide additional, professional credibility that you take your business operations seriously. We recognise that all small businesses operate in a unique way and therefore our policies are designed to pay for what you need.
Prices from
£3.14* a month
Explainer quote
Policy cost
£3.14* a month
Policy type
Therapist Insurance
Duration
Annual
Turnover
£50,000
Public Liability
£1,000,000
Professional Indemnity
£1,000,000
This example is based on a real quote from our website on 05/01/2026. If your circumstances and cover needs differ, your quote may be more or less expensive than the above example. The quote you receive will reflect the information you share about your event. The quoted price may vary from those displayed here.
Have a question?
For further information on your policy, renewals, making a claim and contacting us, you’ll find an extensive list of FAQs on our Help & Support page.
Why choose Protectivity for your startup insurance policy?
Let the reviews of over 3,500 customers explain why you should choose us.¹
Trusted by over 180,000 customers.
Experienced insurance providers for over 30 years.
Over 3,500 highly rated reviews.
Proof of our excellent customer service.
Experienced Claims Handling
A smooth and efficient claims process.
UK Based Customer Support
Our UK sales team are here to help.
Frequently
Asked Questions
Is insurance for a startup business compulsory?
Most types of business insurance are optional, but Employers’ Liability insurance is a legal requirement if you employ staff, even part-time or temporary. Other covers, such as public liability or professional indemnity, are not legally required but are strongly recommended and sometimes needed to work with certain clients or operate in specific environments.
Does startup insurance include protection for intellectual property disputes?
Protectivity’s Business Insurance does not include cover for intellectual property disputes, such as copyright or trademark issues. The policy focuses on liability protection (e.g. public liability, professional indemnity) and optional add-ons like equipment cover.
Why is business insurance important for startups?
Business insurance helps protect new ventures against unexpected costs resulting from claims, accidents, mistakes, property damage, or legal action. It ensures you won’t have to pay these expenses yourself, helping safeguard your finances, equipment, and reputation so you can concentrate on growing your business.
When should I get insurance for my startup?
As soon as you begin working with clients, using equipment, or carrying out business activities. Even early-stage work carries risk, and many venues or clients will require proof of cover before you can start.
Can I get startup insurance without registering my business?
Yes, you can arrange cover as a sole trader or freelancer without registering as a limited company. You simply need to declare the activities you carry out so the policy can be tailored to your startup.
Will changing from sole trader to limited company affect my insurance?
A change of legal structure means your policy details must be updated. You will need to notify us so your policy can be amended or replaced to reflect the new business entity.
Does public liability insurance cover my startup’s employees?
Public liability insurance covers claims made by the public, such as customers or visitors, not employees. If you have employees, you will need Employers’ Liability insurance to protect against claims from staff who are injured or become unwell due to their work.
Discover more from Protectivity
This page content has been created for general information and should not be taken as advice.
*Prices quoted refer to a quote raised from our website 05/01/2026. Prices will differ depending on requirements. Make sure you have the correct level of cover for what you need. For the most accurate pricing, please get a quote and for full details on what is covered refer to our policy documentation with your quote.
** Based on Protectivity sales data from 2007 to present
ˆ10% discount for policies bought online and applies only to the first-year of your policy premium. Protectivity reserves the right to amend or withdraw this offer at any time. Available to UK residents only.
¹Based on live Feefo data