As a business owner it's not just important to have liability insurance, it's required by law. Here's why you need it and what it's for.

What is the law?

The Employers' Liability Insurance policy was introduced in 1969 and every company who employs one or more members of staff must have it. The insurance covers the business owner if for example, the employee has an accident or illness while at work. In this instance you are then covered in any eventuality your staff member might want to claim compensation.

Does every type of small business need this insurance?

Yes, this insurance is needed across all small businesses, no matter what kind of company you run. The only companies that may be exempt from this law are companies without any employees or family run businesses that employ only family members. Be sure to check this out when starting your business as if you do not have the appropriate insurance you could be fined up to £2,500 per day. You will still need this policy even if you only employ temporary staff.

What level of cover should I go for?

The level of cover you should go for is completely dependent on the type of work you do. Businesses that undertake work that exposes them to higher risk of injury, should take out a policy that offers more cover. You should also think about the number of people you employ when deciding which policy to go for. Bear in mind employees can also claim should your company go out of business. The minimum of cover that you must have is £5 million, although as a general rule, most policies offer cover for £10 million.

Is this the only type of insurance I need?

No, you can also get Public Liability Insurance. Public Liability Insurance differs in that you are covered if a member of the public suffers any sort of injury, loss or damage to their property because of your business. While this type of insurance is not a legal requirement, like the Employers' Liability Insurance it is very important to have. The policies mainly cover for any kind of incident that happens on your work premises or for example if something happens at any events organised by your company. It's also an insurance you should consider should you run your business from home.

If you have any questions regarding business insurance or you would like a quote, give our team a call on 01608 647846. They will be happy to answer any queries, and talk things through with you in more detail.

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Monday to Thursday	9:00 - 19:30
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