Business insurance legal requirements vary depending on the type of business set-up.
Public Liability Insurance
Public liability insurance is not a legal requirement; however, it is highly recommended if the nature of your business involves interacting with the public, clients and contractors.
Even if a business takes all the necessary precautions to avoid mishaps, accidents can happen. This can result in a legal battle which could be financially damaging to your business, especially if you wouldn’t have the means to settle a claim without the right insurance in place.
Public liability cover won’t protect you retrospectively, therefore it’s a good idea to arrange insurance before you interact with members of the public, clients or contractors.
Often companies entering into contracts with your business will require you to have particular types of insurance in place, which may need to be evidenced prior to beginning the contract.
Find out more about Public Liability Insurance
Professional Indemnity Insurance
Professional indemnity insurance (also known as professional liability insurance) is not a legal requirement. However, most professional institutes and associations require their members to have some form of professional indemnity insurance and regulate this through their rules and regulations. For example, financial advisers, accountants and solicitors.
Not having the appropriate professional indemnity insurance can be a serious disciplinary offence, and can result in a firm being fined or closed down by their regulator.
Find out more about Professional Indemnity Insurance
Employers’ Liability Insurance
If the business employs any staff at all, employers’ liability insurance is a legal requirement.
Find out more about Employers’ Liability Insurance
