Protection against costs and damages, awarded as a result of damage or injury caused by your business, is provided by liability insurance.
  As even relatively simple cases can cost thousands of pounds in legal fees and compensation payments, it can make good business sense to have such a policy no matter how large or small your business is.
 In the UK, there are several different types which may be relevant to you, depending on the nature of your business, and these are summarised below.

• If you produce, refurbish or sell any products, then you should consider product liability insurance.
      This is designed to pay the damages awarded if the product injures a person or damages property, the costs associated with treating an injured person, and also any legal expenses;  
• If customers and other people visit your premises, or you carry out work on customers' premises, then public liability cover could be a good idea as it will pay out for damages awarded against you if people are injured or property is damaged.
   This can cover both accidents and negligence, such as putting a nail through a water pipe or failing to properly secure a kitchen unit as well as someone tripping on an even floor tile or an employee spilling something on a visitor's clothes;

Employers' liability insurance is required by law in the UK for anyone who employs others, including yourself if you are the managing director of a limited company, though there can be exceptions.
 It will compensate employees if they are injured as a result of the business being negligent, such as providing insufficient training or inappropriate tools.
 Employers must be covered for a minimum of £5 million.

• Professional indemnity cover is another form of liability insurance UK cover that protects you if you cause damage to the income or reputation of another business by your actions.
   The law requires some professions have this cover, and many others find it to be a useful way of protecting their business against mistakes made when providing advice or services for a client.
  

Liability insurance can have some detailed clauses.
 A specialist intermediary should be able to give you advice about which of these is appropriate for your business, and what level of cover you require.