Commercial combined insurance

A clear guide to combined cover for UK businesses

Commercial combined insurance brings core business protections into one policy, typically property, business interruption, liability, and more. It is designed for organisations that want coordinated cover with fewer gaps and simpler administration. In 2025, the UK market is soft, with increased insurer competition and broader terms. Many businesses are seeing premiums ease and limits improve, which creates a useful window to review cover and correct past compromises.

Premiums across commercial lines have generally fallen this year, with year-on-year declines reported and underwriting capacity returning. That has encouraged flexible terms and higher participation from insurers and MGAs, especially for well-managed risks. While this is positive for buyers, it also raises a separate risk: underinsurance. Nearly half of UK commercial properties are estimated to be underinsured, often by a significant margin. If a claim arises and sums insured are too low, average clauses and inadequate limits can lead to painful shortfalls.

Insurance can only deliver when the sums and limits are accurate.

This guide explains how commercial combined insurance works, what it covers, the limits and exclusions to expect, and how pricing is shaped. We will also highlight climate and supply chain pressures that may affect property and interruption losses. Our aim is simple: help you understand the essentials in plain English, so you can decide if a combined policy fits your operations and risk appetite. No jargon, no assumptions, and no hard sell.

What is covered in practice and how claims run

A commercial combined policy typically includes property damage for buildings, fixtures, machinery, and stock, along with business interruption to cover lost gross profit or revenue after an insured event. Liability sections usually include public and products liability, and employers’ liability where required by law. Many policies can add goods in transit, money, fidelity, and equipment breakdown, creating a single framework of protections.

Claims generally follow a straightforward pathway. You notify your broker or insurer, provide evidence such as photos, invoices, and valuations, and cooperate with adjusters. For interruption claims, accurate financial records are key to calculating indemnity. However, cover is not open-ended. Common exclusions include gradual wear and tear, poor maintenance, deliberate acts, and certain cyber or contractual risks unless specifically added. Flood or storm risks may require endorsements or higher excesses in vulnerable areas.

For example, a burst pipe that damages stock may trigger property and interruption cover if sums insured and limits are correct. But if your building valuation is outdated and costs have risen, an average clause could reduce the payout. Likewise, a product injury claim may be covered under products liability, but contractual guarantees or fitness-for-purpose promises outside normal liability law may not be included. Understanding these boundaries avoids surprises when you need the policy most.

Who gains most from a combined policy

Commercial combined insurance suits SMEs through to mid-sized enterprises that want cohesive protection across property, interruption, and liability. It is particularly valuable for manufacturers, wholesalers, warehouses, and multi-site retailers, where operational downtime or third-party injury could be costly. Professional services firms with limited tangible assets may still benefit when liability and equipment breakdown risks are meaningful.

If your business has minimal physical assets, no employees, and low public interaction, a simpler liability-only policy may be more appropriate. Conversely, if you manage complex supply chains, temperature-controlled stock, or high-value machinery, a tailored combined policy can help align sums, sub-limits, and indemnity periods across connected risks. The key is proportionality: buy the breadth you need, not unnecessary extras.

Choosing the right build of cover

1. Essential bundle

   • Property damage, employers’ liability, public and products liability.
   • Shorter interruption period, basic security conditions, standard deductibles.
   • Suits smaller firms with straightforward operations and low complexity.

2. Standard bundle

   • Adds business interruption with a realistic indemnity period, goods in transit, and money cover.
   • Option for equipment breakdown and specified all risks for portable items.
   • Fits growing SMEs seeking broader continuity protection.

3. Advanced bundle

   • Higher limits, extended interruption cover, stock deterioration and machinery breakdown included.
   • Wider perils, suppliers and customers extensions, and non-damage BI options where available.
   • Designed for operations with dependency exposures or complex machinery.

4. Optional add-ons

   • Cyber cover for data breaches and network interruption.
   • Legal expenses for contract and employment disputes.
   • Terrorism where property concentration is high or lender required.
   • Engineering inspection services for statutory plant compliance.
   • Marine cargo for import and export exposures.

Pricing today and what shapes it

Pricing in 2025 benefits from broader cover and stable deductibles in many cases, but insurers still underwrite carefully. Expect better terms for well-documented risks with accurate valuations and robust continuity planning.

Who can apply and common requirements

Most UK-registered businesses can apply, including limited companies, partnerships, and sole traders. Insurers typically ask for a full statement of fact or proposal details covering activities, locations, construction, security protections, sums insured, and financials. Recent valuations for buildings, machinery, and stock are increasingly important due to rising rebuild costs. For interruption, insurers may request turnover and gross profit data, plus details of key suppliers and customers.

Applications may be declined or restricted if there is poor risk management, significant unremedied hazards, adverse claims patterns, or undeclared high-hazard processes. Flood-exposed sites without mitigation can face higher excesses or specific terms. Accuracy matters: material non-disclosure can invalidate cover. Preparing documents up front reduces friction and supports competitive quotes.

From quote to claim in simple steps

1. Gather risk data, valuations, and recent financial figures.
2. Request quotes via a broker, sharing full and accurate information.
3. Compare limits, sub-limits, exclusions, and excesses line by line.
4. Select an indemnity period aligned to realistic recovery times.
5. Add optional sections where exposures exist, remove those not needed.
6. Bind cover, check schedules, endorsements, and warranties carefully.
7. Maintain risk controls and keep valuations and asset registers current.
8. If a loss occurs, notify promptly and follow the claims guidance.

The upsides and trade-offs to weigh

Key checks before you proceed

Review your schedules for sums insured, inner limits, and average clauses. Confirm what counts as buildings, contents, and stock, and whether debris removal, professional fees, and inflation provisions are included. Check excesses for property and flood, as these can vary by location. Read exclusions carefully, especially for wear and tear, defective design, and cyber. Understand interruption cover: basis of settlement, indemnity period, and supplier and customer extensions. Finally, note renewal terms and how claims may affect premiums, and keep evidence of valuations and maintenance available.

Alternatives that might suit different needs

1. Public and products liability only - If you have minimal assets and limited interruption exposure.
2. Property-only cover - When you own premises but have low liability risk or no employees.
3. Cyber insurance - For data-heavy operations where system outage is the primary concern.
4. Directors and officers insurance - To protect personal liabilities of company directors and officers.
5. Sector-specific packages - For micro businesses and trades that need simpler, pre-set covers.

Frequently asked questions

Q: Why are premiums softer in 2025? A: Insurer capacity has increased, profitability has improved, and competition has risen. Many buyers are seeing premium reductions and broader terms, although individual risk factors still drive outcomes.

Q: How do I avoid underinsurance? A: Commission professional valuations, update sums for buildings, machinery, and stock, and review interruption calculations. Check inner limits and apply realistic indemnity periods that match your recovery time.

Q: What indemnity period should I pick for business interruption? A: Choose a period that reflects real rebuild and supply chain times. Many manufacturers select 18 to 24 months, while simpler operations might consider 12 months if recovery would be faster.

Q: Are flood and storm automatically covered? A: Usually, but terms vary by postcode and loss history. You may face higher excesses or special conditions in high-risk areas. Confirm specific perils and deductibles on your schedule.

Q: Can I add cyber cover to a combined policy? A: Some insurers offer limited cyber extensions, but dedicated cyber policies often provide broader protection and higher limits. Compare scope, sub-limits, and incident response services.

Q: What documents help at claim time? A: Photos, invoices, asset registers, valuations, maintenance logs, and clear financial records for interruption claims. Early notice and full cooperation with adjusters support faster settlement.

Q: Will savings last into next year? A: Market cycles change. Conditions are buyer-friendly now, but pricing can firm if losses rise or capacity tightens. Focus on long-term risk quality to maintain competitiveness.

What to do next

If a combined policy looks suitable, gather your valuations, asset lists, and financials, then compare quotes on a like-for-like basis. Focus on sums insured, inner limits, excesses, and interruption periods. A good broker will help you map cover to real risks so you only pay for what you need.

Important information

This guide is general information, not personal financial advice. Policy terms, limits, and exclusions vary by insurer. Always read your schedule and wording carefully and seek professional guidance for your specific circumstances.