Introduction to Insurance
Does my Cornish Business need Insurance?
Depending on the kind of business that you have, you are required by law to have certain types of insurance. For example any business in the UK with one or more employee is legally required to have Employers Liability Insurance (see below for further information on this). Also certain professions are legally required to have Professional Indemnity Insurance. An example of this would be Financial Advisors and Accountants who cannot legitimately operate unless they have this type of cover.
Although you are not legally required to have any other types of insurance than those listed above, if your business comes into contact with any third parties then it is extremely important that you take out Public Liability Insurance which will cover your business for any compensation claims made against it for injury to the third party or damage to their property.
Who is considered a ‘third party’?
A ‘Third Party’ includes the following:
- Your clients
- Your suppliers
- Your customers
- People that come into your premises – such as a postman, delivery man, member of the public.
Other types of Business Insurance worth considering
- Commercial Property
- Contract Works
- Property Terrorism
- Fidelity Guarantee
- Business Interruption
- All Risks
- Legal Expenses
- Directors and Officers
- Fleet and Motor
Does my Cornish Business Legally need Insurance?
By Law, every business in the UK that has one or more employees must have Employers Liability Insurance. This Law came into force in 1969 with the Employers’ Liability Insurance Act 1969.
Employers Liability provides cover for your business in the unfortunate event that an employee suffers an injury while at work, or becomes ill as a result of working for your company and makes a compensation claim.
Is my Company Exempt from needing Employers Liability?
There are certain types of businesses that are not required to have Employers Liability. Companies like this include:
- Companies that do not have any employees
- Family businesses that only employ family members
If you are unsure of whether you need Employers Liability or not, then please go to our Contacts Page and we can get you in touch with a local broker who can discuss this with you and offer you some advice.
What level of cover do I need for my Employers Liability Insurance?
By law you are required to have £5 million of cover, but most insurance companies provide £10 million worth of cover.
What if I choose not to have Employers Liability?
If you decide not to bother having Employers Liability cover then you can face fines up to £2,500 per day, also The Health and Safety Executive (HSE) has the authority to close down your business if you refuse to comply with their regulations.
What is an Employers Liability Certificate?
When you take out an Employers Liability policy you will receive an Employers Liability Certificate from your Insurer. This certificate needs to be displayed in a location where your employees can see it (For example in your staff room). Your company is also required to keep a copy of this certificate for at least forty years.
This site, InsuranceBrokerCornwall, has been created and provided by Liquid Lava. We are an independent marketing website and are not authorised to give advice. We are not liable for any advice provided by, or obtained through a third party. The information published on this website is for information purposes only.
Care has been taken to ensure that the information is correct, but we neither warrant, represent nor guarantee the contents of information, nor do we accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. We do not give personal advice and the information provided is only to provide an overview of the areas of finance. Anyone considering taking any action may wish to seek advice from an Insurance Broker registered with the Financial Conduct Authority. We cannot be held liable for any losses incurred.