What Business Insurance Is Compulsory?
Making sure you Know What Insurance is Required by Law
We often get asked the question “What insurance for my business should I invest in?” Well, this really comes down to several factors.
- What does the law require?
- What type of unexpected event can your business recover from or more importantly, not recover from?
- What type of business do you run?
A broker can put together a specific business insurance policy that’s right for your business.
What Business Insurance Is Required by Law?
When considering the compulsory business insurance your business needs, you should be aware that the following types of cover are required by law.
- Employers’ Liability Insurance
This type of insurance is compulsory if you have any employees. The Compulsory Insurance Act 1969 ensures that businesses are legally required to protect against claims regarding workplace accidents. This means that having to pay any compensation claims should a member of staff become injured or ill as a result of working for your business (and you were at fault). Public Liability insurance is not required by law but could be sensible if you have customers or visitors coming to your workplace. This covers you if they were to make a claim after becoming injured at your workplace.
- Motor Insurance
Even if you only use your vehicle for business purposes, you’ll still need to insure your vehicle for a minimum of third party cover. If using a personal vehicle, you will also need business motor insurance to avoid your motor insurance policies becoming invalid. You’ll need to provide the nature of your work, how much time your vehicle is used for business purposes and how many miles you do during the average year which are business-related. You may also wish to have umbrella cover for a fleet of vehicles and have business cover for all drivers to use each vehicle.
What Business Insurance Do I Need?
While there are few policies required by law, you should speak to an expert business insurance broker to determine what you actually need. You should protect your businesses against anything which could put you out of business or serious affect your income. Popular types of cover include:
- Buildings insurance – covers the fabric of the building such as doors, wall, ceilings and floors from things like fire and water damage. This is only required if you own the building.
- Contents insurance – covers the property within your premises such as furniture, equipment, cash and personal belongings from fire, water damage, accidental damage and theft.
- Business interruption – covers your income should your business be unable to trade at full capacity due to damage to the business or contents
- Professional Indemnity (PI) insurance – protection should any customers suffer financial losses due to business negligence
- Business travel insurance
- Terrorism cover if you’re in a high risk location
- Cover specific to your industry
- Legal expenses cover
- Insurance for any high value equipment
Need Help with your Insurance?
There are many types of insurance your business may need. There are those compulsory by law which you have no choice but to have, and those which are sensible to cover you from going out of business due to an unexpected event. At Invicta Business, we can advise you about what our insurance providers can cover you for. We are a specialist brokers based in Kent and understand that every business will have its own needs. To stay protected and within the law, call on 0330 0450032 today to speak to one of our team.