Liability Insurance: Small Vs Large Businesses

Business people working in a café.

Whether you’re running a small startup or a large corporation, one rule remains the same: your business needs commercial liability insurance. However, with a number of subtle differences between the needs of small and larger businesses, understanding the exact coverage to look for can be tricky. In this blog, we’re taking a look at those differences to help your business find the liability insurance cover it needs.

The Unique Challenges Facing Small Businesses

Small businesses, often considered the backbone of the UK economy, face a range of challenges that their larger counterparts often don’t. Limited resources and tighter budgets mean they can be particularly vulnerable to the financial ramifications of legal disputes or accidents. With that in mind, finding suitable insurance for small businesses is not just a safety net but a foundation for sustainable growth.

Key Coverage for Small Business Insurance:

  • Public Liability Insurance: This is crucial for small businesses that interact directly with customers or the public, covering claims of injury or damage.
  • Professional Indemnity Insurance: If your small business offers advice or professional services, this insurance is essential to protect against claims of negligence or malpractice.
  • Employer’s Liability Insurance: Mandatory in the UK if you have employees, this covers claims from employees who might get injured or fall ill because of their work.

Bear in mind that any coverage should be proportionate and specific to the risks your small business faces. For instance, a small IT consultancy firm will have different commercial liability insurance needs compared to a local bakery.

How Large Businesses Approach Liability Insurance

Shifting our focus to larger businesses, the narrative around liability insurance takes a different turn. The scale of operations, the number of employees, and the extent of exposure to risk are exponentially higher in large businesses compared to their smaller counterparts. Generally speaking, this means the commercial liability insurance needed tends to be more comprehensive in its breadth.

Risk Management for Larger Enterprises

  • Comprehensive Coverage: Large businesses often require more comprehensive policies that cover a wide range of risks, including directors and officers insurance and cyber liability. In theory, this protects the business no matter the nature of any claims that arise.
  • Customised Policies: Given their complexity, large businesses frequently opt for customised insurance policies that are tailored to their specific needs and risk profiles. This can be an effective cost-saving measure while the business still receives the comprehensive liability insurance cover they require.
  • Risk Management Strategies: Large businesses typically have dedicated teams for risk assessment and management. This ensures the business is minimising risk while their insurance coverages are aligned with the current risk landscape.

Tailored Commercial Liability Insurance from Higos

The importance of having the right liability insurance cannot be overstated, and more often than not, that means tailoring a policy around your business’s unique requirements. At Higos, our commercial insurance experts will get to know the ins and outs of how your business operates, identifying the risks you face and how to mitigate against them. Whether a growing SME or a large corporation, all our policies can be tailored and built from the ground up to get you the protection you need.

Are you looking for commercial liability insurance for your own business? Get in touch and our team will be happy to help. For comprehensive liability coverage, it has to be Higos.

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Give us a call on 01458 270323 if you have any questions or click the 'request a callback' button.