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What business insurance MUST I have?
Employers’ Liability Insurance
A simple question. Do you have employees? If the answer is yes, then you will need Employers’ Liability Insurance. This is not only a legal requirement, but one that could also cost you, if you attempt to avoid it. The Health and Safety Executive is the body tasked with enforcing this law. Not having this insurance could entail a fine of £2,500... for each day you are running your business without the right insurances. What does it cover? Effectively it covers you for all employees, (including temps, work placements, contract, casual and seasonal staff) and means that you will be covered against any injuries at work, or illness incurred as a result of work. In essence, it really protects you and your business from any claims that might be made against you, including compensation and legal fees. The law insists on coverage up to £5 million but in reality you’ll find most policies run up to at least £10 million a standard.Third Party Motor Insurance
Of course this is only a requirement if you run motor vehicles, in much the same way you would need insurance when running your own personal car. Such businesses are likely to be motor traders, garages, taxis, coaches, small vans, vehicles on building sites, farms and industrial sites. Again, the consequences of not having such insurance do not bear thinking about. As with your personal vehicle, driving without insurance is a criminal offence. In commercial terms, the police are entitled to seize and possible destroy the vehicle and you may be liable to a £5,000 fine, disqualification and up to 8 points on your license (when, that is, you get your license back).
Published by Utility Helpline on (modified )
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