What does business insurance include?

Most business insurance policies have four core parts: property, business interruption, liability and legal protection. On top of that you can add cover such as cyber, D&O or crime insurance. But there is no standard package. What is included, how high the limits are and what is excluded is set out in your own försäkringsbrev (the policy document) and your policy terms.

The foundation: four parts

Property protects what the company owns: furniture, computers, machinery and goods. Common covered losses are fire, water damage, burglary and theft. What decides how much you get paid is the insured amount, so it matters that it matches what your things are actually worth. Read more about property insurance.

Business interruption pays lost gross profit, meaning revenue minus the costs you no longer have, plus extra costs, when damage covered by the policy stops the business from running as normal. The interruption has to come from a covered loss: an ordinary downturn is not covered. Read more about business interruption insurance.

Liability helps the company if it becomes liable to pay damages for injuring a person or damaging someone else's property. Read more about liability insurance.

Legal protection pays part of the cost of lawyers and court proceedings if the company ends up in a dispute. There is often a deductible and a cap on how much is paid. Read more about legal protection insurance.

Common add-ons

These are rarely included automatically, but many companies need them.

Cyber

Help and compensation after data breaches and IT attacks. Read more about cyber insurance.

D&O

Protects the management personally against claims for damages over decisions made in their role. Read more about D&O insurance.

Crime

Pays for money the company loses through fraud, embezzlement or theft by employees or outsiders. Read more about crime insurance.

Professional indemnity

For financial losses a client suffers because of a mistake in your advice or service. Read more about professional indemnity insurance.

Business travel

Medical care, getting home and luggage when you and your staff travel for work. Read more about business travel insurance.

Key person cover

Covers the company's fixed costs if a key person is ill for a long time.

What is often not included

What is left out matters as much as what is in. Common exclusions and limits are:

• Wear and tear and poor maintenance. Gradual deterioration is generally excluded.
• Financial loss to the client. If the company sells advice or services, that needs professional indemnity.
• Damage inside your IT systems. That usually needs cyber insurance.
• Vehicles. Cars and other vehicles are insured separately with motor insurance.
• Your staff. Health care and accident cover for employees are separate policies.

Good to know. Find three things in your policy document: the insured amounts, the deductible and which sections are marked as included. That tells you more than the name of the policy. The guide how to choose your deductible shows how to work out the deductible.

Frequently asked questions

Is machinery breakdown included in business insurance?

It varies. Some policies include machinery breakdown in the property part, others offer it as an add-on. Check your policy document if the company depends on machinery or technical equipment.

Does business insurance apply when I work from home?

It depends on the policy terms. Many business insurance policies can cover property at several locations, but they often have to be named. If you keep the company's things at home, make sure that address is listed.