Business insurance in Ireland made simple

Starting a small business in Ireland is exciting – but it can be overwhelming too. There's a lot to get your head around in the early days.

Registering the business, sorting your tax, getting your first customers – it all comes at you quickly. Insurance might not be top of your list, but it's something you can't afford to ignore.

Some insurance is required by law. Other types aren't compulsory but can save you a world of trouble later on.

If you're unlucky enough to be sued, or if there's an accident involving a customer or employee, the right cover can make all the difference.

This guide is here to give you a clear picture of what you need – and what you might want to consider – when it comes to insuring your small business in Ireland.

Whether you're running a shop, setting up a consultancy or working on your own from home, we'll walk you through the essentials in plain English.

1. What Irish law says about business insurance

Not every business needs the same insurance, but there are a couple of things you can't legally trade without. If you skip them, you could end up facing fines, or worse.

If you have employees, you need employers' liability insurance

This one isn't optional. The moment you take on staff – whether full-time, part-time, seasonal or even a relative helping out – by law, you must have employers' liability insurance. It doesn't matter if you only employ one person. If they work for you, you need cover.

It protects you if an employee gets hurt or becomes ill because of the work they do for your business. Without it, you're on the hook for compensation, legal fees and possibly a court case. And that's not something most small businesses can afford to take on.

If you use a vehicle for work, it needs to be properly insured

Any vehicle used for business – a van, a delivery car, even your own car if you use it for work – has to be insured for commercial use. Your standard personal insurance policy won't cover it if you're using the vehicle as part of your job.

And if you have staff driving for work, even if it's just running errands or going to meetings in their own car, they'll need to make sure their insurance includes business use. It's something insurers look at very closely, so don't assume you're covered.

Public liability insurance isn't required by law – but it's still important

You're not legally obliged to have public liability insurance, but many businesses still take it out – and for good reason.

It covers you if someone who's not an employee – like a customer, supplier or member of the public – gets injured, or suffers property damage, because of something linked to your business.

If someone slips in your shop or you accidentally damage a client's flooring while working in their home, this is the insurance that steps in.

While it's not mandatory, lots of clients and landlords expect you to have it. Some won't work with you unless you do.

It's also worth knowing that compensation claims can be expensive – even small incidents can cost thousands once legal fees are included.

2. The main types of business insurance (and which ones you might need)

Once you've sorted any insurance that's legally required – like employers' liability or vehicle cover – the next step is to think about what other risks your business might face.

Not everything needs to be covered, but it's worth knowing what's out there so you can decide what's relevant to your situation.

Here's a run-through of the most common types of business insurance in Ireland. You won't need all of them – most small businesses only go for one or two – but it's good to be aware of your options.

Public liability insurance

We touched on this in section 1. It's not a legal requirement, but it's one of the most widely used types of cover in Ireland – especially for businesses that deal with the public or work on other people's property.

It covers claims made by members of the public who get injured, or whose property is damaged, because of your business activities. That could be someone tripping over a cable in your office, or damage caused while doing work in a client's home.

If you're running a café, a retail shop or a trades business, or you regularly meet clients face to face, this is one you should strongly consider.

Professional indemnity insurance

This one's mainly for people who give advice or provide professional services based on their expertise – consultants, accountants, designers, IT workers and so on.

It protects you if a client claims they've lost money because of something you did (or failed to do) in a professional capacity. For example:

• giving incorrect advice

• making a mistake in a report

• delivering work that doesn't meet expectations

Some industries and contracts will insist you have this cover before they'll work with you. Even if they don't, it can give you peace of mind, especially if your work involves handling sensitive information or financial matters.

Product liability insurance

If your business makes, sells or supplies physical products, this is worth looking at. It protects you if one of those products causes harm or damage.

Even if you didn't manufacture the item yourself, you could still be held responsible if you sold it to a customer. The legal responsibility isn't always straightforward, and claims can be expensive to defend.

It's particularly useful if you're in food, cosmetics or consumer goods – anything that people eat, use on their body or bring into their home.

Property insurance (also called buildings or contents insurance)

If you own or rent a premises for your business – an office, shop, studio or workshop – you'll want cover for the building and the stuff inside it.

Depending on the policy, it can include protection against fire, theft, flood, vandalism or accidental damage. Some landlords will insist you have your own contents cover even if the building itself is insured.

If you run your business from home, your standard home insurance probably won't cover business equipment or stock. Consequently, it's worth checking your policy and getting separate cover if needed.

Business interruption insurance

This one helps if your business is forced to close temporarily – for example, after a fire or flood – and you lose income as a result.

It's not essential for everyone, but it can be a lifesaver if you rely on footfall or physical premises to operate. Restaurants, shops, salons and production-based businesses are more likely to benefit from it than, say, remote freelancers.

It usually only pays out if the interruption is caused by something already covered by your property insurance, so the two often go hand-in-hand.

Cyber insurance

More and more small businesses in Ireland are looking at this, especially those who store customer data, take online payments or run everything digitally.

It helps if you fall victim to a data breach, cyber attack or ransomware incident. That might sound like something that only affects big companies, but small businesses are often targets because they're less likely to have strong security in place.

Cyber cover can help with the cost of recovering data, informing customers and dealing with legal issues if sensitive information is compromised.

Commercial vehicle insurance

We mentioned this already, but just to be clear: if your business owns vehicles, you need a policy that covers commercial use.

This includes cars, vans, lorries or anything else on the road that's used for work. Standard personal insurance usually isn't enough.

3. How to figure out what insurance your business really needs

Once you've seen all the different types of cover available, it's easy to feel like you need everything – but in reality, most small businesses only need a few key policies.

The trick is working out what's relevant to your line of work, and what risks are most likely to affect you. This section will help you narrow it down.

Start by looking at how your business operates

Think about how your business actually runs day to day. Ask yourself a few basic questions:

• Do I have employees?

• Do customers come to my premises?

• Do I visit clients or work at their sites?

• Do I give professional advice or provide expert services?

• Do I make, supply or sell physical products?

• Do I rely on equipment or stock to keep the business going?

• Do I store customer data or take card payments?

Each of these brings its own type of risk. And that's really what insurance is about – managing risk, not ticking boxes.

Match the risk to the right type of cover

Here's how some of the common risks line up with the insurance you might need:

• If you have staff – you're legally required to have employers' liability.

• If people visit your business or you go to them – consider a public liability policy.

• If you give advice or deliver expert services – look at professional indemnity.

• If you sell products – product liability might be worth it.

• If you've got stock, equipment or a workspace – think about property insurance.

• If a break in business would cost you money – business interruption could help.

• If you do everything online or store data – you might want cyber insurance.

You don't need to insure every possible risk. But if something going wrong would seriously damage your business, it's worth covering it.

If you're self-employed or a sole trader

Being self-employed doesn't mean you can skip insurance – in fact, it often makes it more important.

If you get sued or something goes badly wrong, there's no legal separation between your business and your personal finances. You're on the hook.

At a minimum, consider public liability (if you meet clients or work in public) and professional indemnity policies if you offer a service based on expertise.

Even basic cover can help you get taken more seriously by clients – some will ask for proof of insurance before signing a contract.

What if I run my business from home?

If you're working from home – whether full-time or part-time – it's easy to assume you're covered under your home insurance. But most policies won't include business equipment, stock or liability, unless you've told them.

Check your current cover and be honest with your insurer about what kind of work you do from home. You might need to adjust your home insurance, or take out a separate small business policy to fill the gaps.

Think about the contracts you take on

Some clients, suppliers or landlords will insist you have certain insurance in place before they'll work with you. That might include public liability, professional indemnity or even a specific amount of cover.

If you're signing contracts, always check the insurance requirements before you agree to anything. If you don't meet the terms, you could be in breach – even if nothing goes wrong.

4. How to get business insurance in Ireland

Once you know what kind of cover you need, the next step is getting insured. This part doesn't have to be complicated, but it's worth taking a bit of time to get it right.

You want cover that's a good fit for your business – and at a price that makes sense. Here's how to go about it, step by step.

You can go through a broker or deal directly with insurers

There are two main ways to get business insurance in Ireland:

• Use an insurance broker: This is someone who works on your behalf to find the best policy for your needs. They're especially helpful if your business is a bit unusual or doesn't fit the standard mould. Brokers can save you time and usually have access to a range of providers.

• Go direct to insurers: Some insurers deal with small businesses directly, either over the phone or through their websites. If your business is straightforward and you know what you're looking for, this can be quicker – and sometimes cheaper.

Neither option is right or wrong. If you're not sure what you need or want someone to explain it all in plain terms, a broker can be a good shout. If you're confident and just want to compare quotes, going direct can work fine.

What to have ready when getting a quote

Insurers will ask you a few key questions when you apply for a policy. These might include the following:

• What does your business do?

• Do you employ anyone?

• Where do you work from?

• Do customers or clients visit your premises?

• Do you work on other people's property?

• Do you sell products?

• Have you made any claims in the past?

The more accurate you are, the more likely you'll get the right kind of cover. If you leave something out, your policy could be invalid – and that's the last thing you want if you need to make a claim later on.

Be clear on what's actually included

Not all policies are the same. Two quotes might look similar on price, but cover very different things.

Before you agree to anything, read the key facts of the policy and check:

• What's covered – and what's not

• Any limits or exclusions

• The excess (that's how much you'll pay yourself before insurance kicks in)

• Whether you're covered for legal costs

Some policies bundle different types of cover together (like public liability and employers' liability), which can be good value. Just make sure you're not paying for things you don't need.

Online comparison tools can help – but don't rely on them completely

There are a few websites that let you compare business insurance quotes in Ireland. These can be useful for getting a rough idea of what cover might cost – and who offers it. But not every insurer is listed, and the cheapest option isn't always the best fit.

If you're going to use comparison sites, treat them as a starting point. Once you have a shortlist, it's worth calling the insurers directly or speaking to a broker to double-check the details.

Keep everything in writing

When you take out a policy, make sure you get a copy of:

• the full terms and conditions

• the certificate of insurance

• any key documents

Keep these somewhere safe – you may need to show them to clients, landlords or regulators.

And remember, if anything changes in your business – like taking on new staff, moving premises or offering new services – you need to let your insurer know. If you don't, you could find yourself uninsured when you need cover most.

5. What business insurance costs in Ireland – and how to keep it affordable

One of the first questions most business owners ask is, "How much is this going to cost me?" And the honest answer is – it depends.

There's no one-size-fits-all price when it comes to business insurance in Ireland. What you pay will depend on what kind of work you do, the level of cover you need and the size of your business.

That said, there are a few general rules that can help you get a feel for what to expect.

What affects the price?

Insurers do a risk assessment when setting your premium – in other words, decide how likely it is that something will go wrong, and how expensive that might be to sort out.

Here are a few of the key things that will influence the cost:

• The type of work you do: Some industries carry more risk than others. A builder will usually pay more for insurance than a freelance copywriter.

• Whether you deal with the public: Businesses that have foot traffic (like cafés, salons or shops) often face more public liability claims, so their premiums tend to be higher.

• Your turnover and size: Bigger businesses with more income, employees or locations are likely to pay more for cover.

• Your claims history: If you've made claims in the past, that can push your price up. No claims often means cheaper premiums.

• Level of cover: Higher cover limits (like €2 million instead of €1 million) usually cost more. Same goes for policies that include lots of extras.

Typical price ranges (just to give you an idea)

Again, these are ballpark figures – your own quote could be lower or higher depending on your specific situation. But to give you a rough idea:

• Public liability insurance: For a small business in a low-risk sector, you might pay somewhere between €150 and €500 per year.

• Employers' liability insurance: This will depend on the number of employees and the kind of work they do. Prices usually start around €300 to €600 annually but can be much more for higher-risk jobs.

• Professional indemnity insurance: Can range from about €200 to €1,000 or more per year, depending on your industry and the cover limit.

• Combined policies: If you bundle a few types of cover together (for example, public liability, employers' liability and property), you might get a better deal overall.

IMPORTANT: These figures are just a guide – always get quotes based on your actual business.

How to keep your insurance costs down

A good policy isn't always the cheapest one – but it should give you solid cover at a fair price. Spending a little time comparing quotes and being clear about what you do can go a long way.

Here are a few simple ways to make sure you're not overpaying.

1. Don't guess – be specific

When getting quotes, give accurate details about what your business does. Vague or unclear descriptions can lead to higher premiums because insurers assume more risk.

2. Only pay for what you need

It's easy to get talked into extras that don't actually apply to your business. Stick to the cover that protects the areas you're genuinely exposed to.

3. Bundle policies if it makes sense

If you need more than one type of insurance, look at packages or combined policies – they're often cheaper than buying each one separately.

4. Increase your policy excess

If you're comfortable covering a slightly larger amount yourself if you need to make a claim, you can sometimes reduce your premium by agreeing to a higher excess.

5. Shop around

Prices can vary quite a bit between insurers, even for the same cover. Don't settle for the first quote – compare a few options or speak to a broker.

6. Review your policy every year

Your business will probably change over time – and your insurance should reflect that. At renewal time, don't just auto-renew. Check your details and make sure you're not paying for cover you no longer need.

6. How to handle renewals, changes and claims

Once you've got your insurance sorted, it's tempting to forget about it and move on. And that's fair enough – no one wants to spend more time on admin than they have to.

But insurance isn't a one-and-done task. Your business will change – and your cover needs to keep up.

A little attention once a year (or sooner if needed) can make all the difference when something unexpected happens.

This section covers three things: what to do when your policy is up for renewal, what to do if something in your business changes and how to make a claim if you ever need to.

Renewals – don't just let it roll over

Most business insurance policies last for 12 months. When the renewal date comes around, your insurer will usually send you a quote for the next year.

It's easy to just let it auto-renew – and if nothing's changed in your business, that might be fine. But it's worth taking five minutes to check the following:

• Is my turnover still about the same?

• Have I hired anyone new?

• Am I offering new services?

• Have I moved premises or opened a second location?

• Have I bought expensive new equipment?

If anything's changed, your insurer needs to know. Otherwise, you might find you're underinsured – or worse, not covered at all when something goes wrong.

Even if everything's stayed the same, it doesn't hurt to compare a few quotes. Insurance premium costs can creep up over time. A quick shop around might save you a few hundred euro without changing your cover.

What to do if your business changes mid-policy

You don't have to wait for renewal to make changes. If something big changes in your business, you need to tell your insurer as soon as possible. This might include:

• hiring staff

• moving to a new premises

• adding a new service

• even changing your business name

Leaving them in the dark can cause problems. If you make a claim and they find out you didn't disclose something important, they can refuse to pay out. Not out of bad faith – just because you're no longer covered under the terms you originally agreed.

It's always better to update them than to assume it doesn't matter.

How to make a claim

If something does go wrong – a break-in, a customer injury, a data breach – the first thing to do is stay calm and contact your insurer.

They'll usually ask for:

• your policy number

• a clear description of what happened

• the date and time of the incident

• any supporting evidence (photos, witness statements, receipts and so on)

The sooner you report it, the better. Some policies have time limits on making a claim – usually within 30 days – so don't put it off.

Keep records of everything you send them, and note down any phone calls or emails in case you need to follow up.

If you're not sure whether something is covered, it's still worth reporting it. They'll let you know if you have a valid claim.

And if the claim involves someone else – for example, a customer injury – don't admit liability. Just report the facts and let the insurer handle it.

7. Real, practical examples of small business insurance

Sometimes it helps to see how this plays out in the real world. So here are a few short examples of how different small businesses in Ireland deal with insurance.

These aren't dramatic stories – they're just everyday situations that show how insurance works when you're running a business.

Example #1: A freelance designer working from home

Clare is a graphic designer based in Galway. She works from her spare bedroom and mostly deals with clients online. She doesn't have staff, and she doesn't meet clients in person very often.

She decided to take out professional indemnity insurance, in case a client claims a project she worked on caused them financial loss – maybe they missed a deadline or had to redo work because of a mistake.

She also added public liability cover, just in case a courier or client visits her home office and something happens. It's not legally required, but it gives her peace of mind.

Her insurer bundled both policies together for under €300 a year.

Example #2: A small café in Dublin

Sean runs a small café in a busy part of Dublin. He has two full-time staff and a couple of part-timers.

Because he has employees, he's legally required to have employers' liability insurance.

He also took out public liability insurance – no surprise there, since customers are coming and going all day, and the risk of slips or spills is fairly high.

On top of that, he has property insurance for the building contents – coffee machines, fridges, stock and furniture.

He set up his insurance package through a local broker who specialises in hospitality businesses. Total cost: just under €1,200 for the year.

Example #3: A mobile dog groomer

Karen is a self-employed dog groomer who travels to clients' homes in her van. She doesn't have any staff.

She needed motor insurance for business use, as her van is essential for work.

She also took out public liability insurance, in case a dog is injured in her care or she damages something at a client's home.

Because she sells a few pet products on the side, her broker recommended adding product liability cover.

She pays around €500 a year in total. She also checked her van contents are covered in case of theft – which they weren't on her original policy – so she added that in too.

8. Frequently asked questions (FAQs)

Here are a few of the most common questions small business owners in Ireland ask about insurance. No jargon – just straight answers.

Q: Do I need business insurance if I'm self-employed?

A: Yes – or at least, you should seriously think about it. If you work for yourself, you're legally and financially responsible for what you do.

That means if a client sues you, or something goes wrong, it's coming out of your own pocket unless you're insured. Start with public liability or professional indemnity, depending on the kind of work you do.

Q: Is public liability insurance a legal requirement in Ireland?

A: No – it's not mandatory. But if your business deals with the public, clients or suppliers face to face, it's strongly recommended. Some landlords and contracts may also insist you have it.

Q: How much business insurance do I need?

A: That depends on the size and nature of your business. For public liability and employers' liability, most small businesses in Ireland go for limits of €1 million to €2.6 million.

Some contracts may ask for higher cover, so check the fine print. Your broker or insurer can advise on what's typical for your sector.

Q: Can I just use my home insurance if I work from home?

A: Probably not. Standard home insurance usually doesn't cover business activity, especially things like client visits, stock or business equipment.

Always check your policy and let your insurer know you're running a business from home – you might need to add cover or take out a separate policy.

Q: Where can I compare quotes?

A: There are a few online comparison tools in Ireland – but not all insurers are on them. If you're not sure where to start, try getting a few quotes online, then speak to a broker to see if they can improve on it or spot any gaps in cover.

9. What to do next

Getting your business insurance sorted might not be the most glamorous job on your to-do list, but it's one of the most important.

You're not just protecting yourself – you're protecting the time, money and effort you've put into building something of your own.

Here's a quick recap of what to do next:

• Figure out what's required by law: If you've got staff or a business vehicle, you'll need cover in place before you trade.

• Think about your specific risks: Not every business needs everything. Start with what's most likely to affect you.

• Get a few quotes: Speak to a broker if you're unsure. They'll help you avoid under- or over-insuring.

• Keep your insurer updated: If your business changes, your policy should too.

• Review it once a year: Don't just let it auto-renew without checking it still fits your business.

If you'd like to keep this handy, you might want to make your own checklist based on the types of cover that apply to your business – or ask your broker to help you put one together.

And if in doubt, always ask. A 10-minute phone call with an insurer can save you a lot of headaches down the line.

Need help setting up your business?

No problem! As an Enterprise Nation member, you'll get free access to in-depth resources on everything from business plans and marketing to finance and sales. Join today for the full range of member benefits!