Is it a legal requirement to have business insurance?

Is it a legal requirement to have business insurance?

There is a legal requirement to take out certain insurance which we will highlight below.

Employers’ Liability Insurance

As soon as you take on your first employee you are required to take out employers’ liability insurance. This cover protects you against compensation claims arising from illness or injury to an employee arising from the work they do for you. It is important to note that even if you use temps, seasonal workers or volunteers you must purchase this cover. If you have any doubts what constitutes an employee please contact us – Click Here.  

Important Note – You can be fined up to £2,500 per day if your business doesn’t have adequate employers liability insurance.

Motor Vehicle Insurance

As with your own personal vehicle you are required to have at least third party insurance but we would always recommend that you take out a fully comprehensive policy. Also, please bear in mind that your personal motor policy won’t cover business mileage unless it was requested. If you use your car for business you will need cover for business, social, domestic and pleasure.

Industry Specific Policies

If you are working in certain professions i.e. solicitors, insurance brokers (like us!) or doing government contracts then there will be mandatory cover that you require that your trade body or regulator insists on. We can offer advice on industry specific policies as well as we have dealt with clients across hundreds of industries over the years.

About Edison Ives

We are an innovative brokerage that loves working with startups. What you will get from us is a great service and we can help with business advice if required. We utilise the latest technologies whilst keeping our overheads low. Why? Well, we want to provide you with the most competitive price possible for the right cover. 

To discuss your requirements with an startup insurance expert Click Here.

 

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