The Commonest Business Insurance Claims

The UK’s insurance industry pays out billions of pounds every year – and a large chunk of that relates specifically to the commercial sector. But why is that figure so high? Here Clover Insurance, who are the people to call if you are looking to buy business insurance in Hertfordshire and London, look at the commonest reasons for companies to make a claim.

Burglary and Theft

This is estimated to be responsible for around one in five of all claims made by UK companies – and employees, as well as burglars, can be responsible. Although it is one of the biggest problems faced by businesses, individual claims aren’t usually that large. Insurers usually need to guard against loss of items of stock, rather than extensive structural damage to the premises.

Business Insurance


Many companies also need to guard against theft away from their main place of business. For example, construction firms use cranes and cherry-pickers ‘on location’, tradespeople need to protect the tools of their trade wherever they are working, while courier companies can’t afford to lose any goods en route to their destination. So, insurers offer specialist policies – namely plant, tool and goods in transit cover – to meet these eventualities.


Although the increased use of smoke detectors has reduced the number of claims, around one in 10 insurance claims made by UK firms are related to fire damage. Claims made for this reason are usually quite high, as a fire can cause severe structural damage to a company’s premises, as well as wiping out large amounts of stock and equipment.

The Power of Nature

In 2018, just under one in six claims by UK businesses related to extreme weather conditions such as frost, snow or ice. Frozen pipes – and the water damage that results – is one of the commonest perils that businesses need to guard against, particularly where the pipework is exposed.

Businesses are also now protected by the new Flood Re scheme, a partnership between the UK Government and insurers, which ensures that flood cover remains affordable for domestic customers.

Injuries – to Customers and Staff

If a customer or visitor slips or falls over while they are visiting company premises, that business could be held liable for any injuries they suffer. The risk, and the cost of a premium, increases if it’s a business with a large footfall, such as a large shop or pub. Around 10% of all UK claims are for this type of problem.

Restaurants also need to guard against outbreaks of food poisoning being traced back to any meals which they have served, while hairdressers can be sued by customers who claim that their hair has been permanently damaged after an appointment. This is why all businesses should take out public liability insurance as, if any claim is successful, the legal bills and compensation pay-outs can be extremely expensive.

If a business has any staff, they must take out employers’ liability insurance, as members of the workforce can be injured while ‘on duty’.

Business Insurance from Clover Insurance

Clover Insurance offer a wide variety of different policies to suit different businesses. These include cover for public and employers’ liability, interruptions to your business and shop insurance. This last category can include companies as diverse as off-licences, restaurants and hairdressers. To learn more, follow this link.

We consult a panel of reputable insurers to ensure that any policy we offer our customers is competitively priced as well as tailor-made to meet their exact needs. So, whether you are looking to buy business insurance in Hertfordshire, public liability insurance in London, or need any other type of commercial cover, give us a call on 020 8805 1121.