Best insurance cover for startups

Startups need insurance cover, even when they're still small. We'll delve into why your startup needs insurance and which providers offer cover

In the early days of startups, it may seem like insurance cover is optional – but in some cases, it really isn’t.

The reality is that you should get it before you’ve even launched to keep you covered from day one. We’ll get into that a bit later.

In the meantime, here is the best insurance cover for startups and why you need it. 

Does my startup need business insurance and why?

Yes, you’ll need insurance in some form.

When you’re starting out, you need all of the credibility you can get. Being able to prove you have insurance will put your clients in safer hands and it will make you more favourable to investors further down the line. Legally, you’ll be required to have certain types of insurance, say, public liability insurance if you work with the public.

As much as anything else, starting a business is an enormous leap into the unknown and mistakes are more likely to crop up early on. Part of this equation is that you’ll have less money in your coffers so if something happens to your stock, income or data, you have more protection. 

Speaking of data, it’s the larger companies that make the headlines, but smaller firms are hit by cyberattacks too. As small businesses generally have less resource to put into cybersecurity, they’re more vulnerable to increasingly sophisticated cyber criminals.  

What should you be looking for in your insurance?

As always, choose a package with products that you need – some providers will let you personalise your insurance bundle based on your business’ requirements.

Here are a few other insurance products you may find useful. These can sometimes be added as an extra or bought separately as a standalone product.  

Portables insurance protects your equipment from theft, loss and damage when you’re out and about. Not only that, but it will get your kit on the way to being repaired or replaced.

Employers’ liability insurance is essential if you have employees, interns, apprentices or seasonal staff.

Stock insurance covers your stock in the face of theft, damage and extreme weather events. It can increase or decrease to allow for seasonal stock.

Director and owner (D&O) cover – this liability insurance protects you as a director or owner. For example, if you present misleading information to an investor and they lose money as a result.

Business interruption insurance – if your business is hit by an unexpected even such as flooding, fire or unexpected breakdown of essential equipment, you could be compensated for your pre-tax shortfall in profit or any increased running costs to your business as a result of the interruption.

Media liability insurance may also be a consideration if you post a blog and are worried about publishing incorrect information or are accused of defamation or copyright.

What is the best cover for startups?

We’ve gathered up a few insurers which do specialised cover for startups.

Providers will often give you a starting price but your quote will be based on the size of your business, the nature of your business and the level of cover you’re getting. It goes without saying that if you run a wild water rafting business, your premiums will be bumped up a bit.


Based in: Norwich

Types of insurance

  • Professional Indemnity Insurance
  • Public liability insurance
  • Cyber insurance
  • Director insurance

Get a quote through PolicyBee


With AXA you can tailor cover, paying only for what you need. You can also scale as you grow.

Based in: London

Types of insurance

  • Public liability insurance
  • Professional indemnity insurance
  • Employers’ liability insurance
  • Contents insurance

Get a quote through AXA


Startup packages from Hiscox start from £10 a month. You can make unlimited changes and cancel any time.

Based in: London

Types of insurance

  • Professional indemnity insurance
  • Public liability insurance
  • Employers’ liability insurance
  • Product liability insurance
  • Cyber and data insurance
  • Personal accident insurance

Get a quote through Hiscox


Superscript lets you customise your policy and gives you a price match on quotes.

Based in: London

Types of insurance

  • Public liability insurance
  • Employers’ liability insurance
  • Directors’ and Officers’ insurance
  • Cyber insurance
  • Intellectual property insurance

Get a quote through Superscript

Small Business Pro

Small Business Pro is an all-in-one small business solution, including a customer management tool, a monthly grant and various types of insurance.

Based in: London

Types of insurance

  • Term life cover
  • Jury service cover
  • Criminal defence insurance
  • PR crisis cover
  • Tax investigation protection

This cover is part of the full Small Business Pro packages.

  • Sole trader: £39.99 per month
  • Businesses with between one and 30 employees: £49.99 per month

Find out more about Small Business Pro

Read more

Do you need employers’ liability insurance for self-employed staff? – In most instances, you’ll need employers’ liability insurance for your business. But what if you hire someone who is self-employed?

Can a sole trader employ staff? – What is a sole trader? Does it mean you have to work alone?

What scaleups have in common – Are there any personality traits that founders of scaleups share? What sectors are they in? And do Britain’s fast-growth businesses have other things in common?

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Anna Jordan

Anna is Senior Reporter, covering topics affecting SMEs such as grant funding, managing employees and the day-to-day running of a business.

Related Topics

Business insurance