Two business insurance quotes can look similar on price and be very different when you claim. The difference sits in the details: how much is covered, what you pay yourself, what is excluded and what conditions you must meet. These are the questions to ask your broker or insurer before you sign. For an explanation of the types of cover, see our guide to business insurance.
About the cover
Are my sums insured right?
Ask how the insured amounts for buildings, contents, stock and equipment were worked out. Insuring for less than replacement value can mean a reduced payout on every claim, not only a total loss.
Does it cover my busiest time of year?
If stock levels rise before a busy season, check whether the policy allows for seasonal increases.
What does business interruption cover pay, and for how long?
Find out whether it covers lost gross profit or only fixed costs, and the indemnity period, meaning how many months it pays while you recover.
About what you pay
What is the excess on each section?
Excesses often differ by type of claim. A high excess lowers the premium but means you carry more of each loss yourself.
Can the premium increase during the year?
Ask when and how premiums are reviewed and what triggers an increase.
About the fine print
What is excluded?
Ask for the main exclusions in plain language. Common ones include wear and tear, gradual deterioration and certain cyber losses.
What conditions must I meet?
Many policies require specific security measures, such as a working alarm or stock kept in a locked area. If a condition is not met, a claim can be declined.
What must I tell you if the business changes?
Moving premises, adding a new service or employing more staff may need to be disclosed. Ask what counts.
About claims and the adviser
How are claims handled, and how quickly are they paid?
Ask who handles your claim, what documents are needed and typical turnaround times.
Are you licensed?
Brokers and insurers must be authorised financial services providers. You can check a provider on the Financial Sector Conduct Authority website.
Frequently asked questions
Should I use a broker or buy directly?
A broker can compare insurers and help at claim time. Buying directly can be cheaper for simple cover. Either way, ask these questions.
How often should I review my cover?
At least once a year, and whenever the business changes significantly.
Is the cheapest quote a bad sign?
Not necessarily, but compare the sums insured, excesses and exclusions before comparing price.
What should I do when I need to claim?
See our guide on how to make a business insurance claim that gets paid.
Originally published in March 2022. Updated September 2026.
