Is employers’ liability insurance compulsory?
Employers’ liability insurance is compulsory if you employ people and your business could face a fine of £2,500 for every day you aren’t properly insured.
The Employers’ Liability (Compulsory Insurance) Act 1969 was put in place to make sure businesses take out at least the minimum level of protection of £5m from an authorised insurer to help them pay any compensation costs if an employee is injured or becomes sick because of work.
Is public liability insurance compulsory?
Public liability insurance isn’t compulsory but if your business is likely to come into contact with members of the public and there is a chance that they might make a claim for any injuries or damage to their property that’s caused by your company, then you may want to consider taking out public liability insurance.
For example, you might have a construction company that works near members of the public and there’s a risk that someone might get injured as they walk by your work or their property might be damaged, and they could then claim against your business.
Or you might own a shop and somebody could come in and be injured and they could then sue you. You might be a tradesman and work in other people’s properties where you then caused some damage. Public liability insurance can help cover the cost of these third party claims.
Some businesses may say they want you to have public liability insurance in place before they’ll agree to work with you.
Is professional indemnity insurance compulsory?
Professional indemnity insurance can be compulsory if you work as a consultant, a contractor/freelancer, a recruiter, a tutor, a personal trainer or a private doctor or nurse.
Professional indemnity insurance can also be compulsory if you work in a recognised profession such as architecture, accountancy, law, or if you provide financial advice or your business is regulated.
Some business customers may say they want you to have professional indemnity insurance in place before they’ll agree to work with you.
Do self-employed people need business insurance?
If you’re a self-employed person that doesn’t employ any workers, then you won’t need to take out employers’ liability insurance. But if you do have any employees – whether they’re permanent, temporary or contractors – then you will need employers’ liability insurance.
If you offer advice or professional specialist services as a self-employed person then you’ll most likely need professional indemnity insurance. And if there’s a risk of someone being injured or their property becoming damaged because of your work then you’ll need to consider getting public liability insurance.
As a self-employed business person you should be able to claim for all your business insurance as an expense.
How much does business insurance cost?
The cost of business insurance varies depending on the level of cover you need and the amount of cover you need to take out. You can also choose to add extra cover such as legal expenses, business and office equipment and personal accident.
Comparing business insurance quotes can help you get a better idea of how much business insurance will cost for you and your company.
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