Firstly, it should be mentioned that if your business is made up of close family members, then there is no legal obligation to have business insurance.
That said, it may be stipulated on your contract so here is a list of the most common insurances and their purposes.
We can advise on appropriate levels of cover, and provider’s best suited to your needs
Employer’s Liability Insurance
This is to enable the businesses to meet the costs of damages and legal fees for employees who are injured or made ill at work through the fault of the employer. Although the legal minimum is £5m, most policies exceed this amount.
Public Liability
This insurance covers any awards of damages given to a member of the public because of an injury or damage to their property caused by you or your business. So for example, if a permanent employee tripped over your briefcase and successfully made a claim against your business, then this would provide cover. PL is not compulsory, although its often included as part of a combined package.
Professional Indemnity
PI protects your business against claims for loss or damage by a client or a third party if you have made mistakes or are found to have been negligent in some or all of the services that you provide for them. Although in some professions to is compulsory such as law, it is often included as part of a combined package.
Combined insurances for contractors
A combined package is available for most contractors and will cover all of the above insurances. A typical price for combined insurance will be around £200pa.
