Not all business insurance policies are required by law in the UK, but some types are. The most important legal requirement is employers’ liability insurance. If your business employs staff, even part-time or temporary employees, UK law requires you to hold this cover.
Employers’ liability insurance protects businesses if an employee becomes injured or ill as a result of their work. Businesses operating without this insurance can face fines of up to £2,500 per day, making it one of the most important insurance policies for UK companies.
While only some insurance policies are compulsory, many others are strongly recommended depending on how your business operates.
Public Liability Insurance
Recommended for businesses that interact with customers, clients, or members of the public. It provides protection towards claims of injury or property damage.
Professional Indemnity Insurance
Provides protection towards businesses who offer professional advice or services, such as consultants, designers, or financial professionals. Sometimes, a business’ client may require a for you to have a certain amount of Professional Indemnity Insurance as part of the contract.
Commercial Insurance Property
Provides protection towards business premises, equipment, and stock against risks such as fire, theft, or flooding.
Why Business Insurance Still Matters Even When It Isn’t Mandatory
Even when insurance isn’t legally required, operating without appropriate cover can expose businesses to significant financial risk. Claims for injury, property damage, or professional mistakes can quickly lead to costs far greater than the annual insurance premium. For this reason, many businesses choose to work with an insurance broker to review their risks and take out a business insurance policy that best suits their requirements.
Reviewing Your Business Insurance
Reviewing your business insurance policy regularly can help to keep your business at adequate levels of protection for the unexpected.
A business insurance review can help to confrim:
- Legal insurance requirements are met
- Assets and liabilities sums insured are correct for your business
- Risks are properly managed
At Portal Broking Group, we help UK businesses understand their legal obligations and find tailored business insurance solutions to meet their business’ requirements. If you would like a review of your current insurance policy, we’re always happy to help. Call our experienced team on 01829 706436 or complete our contact form and we’ll be in touch with you as soon as possible.