Insurance to Protect Your Business

1. Legal Requirements

By law you must insure against certain liabilities to your employees, customers and the public.

1.1 All businesses except those only employing close family members or where the owner is the only employee must purchase employers’ liability insurance.

This covers you against claims from employees for accidents or sickness they may suffer as a result of working for you.

  • You must have cover of at least £5 million.
  • You must display your Certificate of Employers’ Liability Insurance at each place of business or provide reasonable access to an electronic copy of the certificate to all affected employees (such as on your company intranet). You must keep it after it has expired.
  • Your insurance must cover all employees, including contract staff and casual workers.

1.2 You must buy at least third-party motor insurance for all vehicles your company uses on the road and in other public places.

  • Third-party insurance covers your company’s liability for personal injury to someone else or damage to property. Comprehensive insurance covers any damage to or theft of your own vehicles.
  • If employees use their own cars for business, check they are adequately insured under their own private policies. Your company’s liability for any damage caused by an employee’s private car while on business will usually be covered if you have public liability insurance (see 4.1).

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