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.
Your Public Liability insurer will react, on behalf of your business, to any compensation claims for injury to the third party or damage to their property. An essential cover to provide peace of mind, knowing how personal injury claims typically run in to their tens of thousands.
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.
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 insurance 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 contact us by phone, email, the form on the left or go to our Contacts Page. We are here to help and we can we can discuss your circumstances and offer you advice and a solution.
What level of cover do I need for my Employers Liability Insurance?
By law you are required to have £5 million of cover.
Most insurance companies provide £10 million worth of cover.
What if I choose not to have Employers Liability?
If you decide to forego taking out Employers Liability insurance (ELI) cover then you can face fines up to £2,500 per day.
In addition 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.