business insurance
LexInter | November 19, 2022 | 0 Comments

Types Of Business Insurance You Must Have By Law

As a business owner, you no doubt have many plates to keep spinning; manufacturing and production, customer service, keeping your accounts balanced and up to date. Another crucial task is to keep on top of your business’s requirements when it comes to insurance. In fact, did you know that many companies must take out certain business insurance policies by law?

Here we’ll delve a little deeper into what those policies are and the kinds of businesses that must be protected.

Employers’ liability insurance

Professional Civil Liability Insurance

This type of insurance is a must as soon as you employ people as a business and carries a fine of £2,500 for every single day that you are not properly covered.

Typically known as EL insurance, this type of cover can pay out if an employee suffers an injury or illness while they are working and is unable to work for a significant period of time.

Policies can often help to cover the costs of compensation payouts and legal fees owed to those who are harmed.

Professional indemnity insurance

Kind of insurance

While PI insurance might not be a legal requirement, it is often written into the rules of regulatory bodies that it must be taken out before businesses can operate in a licensed manner.

This type of cover provides financial assistance in the event that you need to pay out to a customer or client that suffers an injury or loss as a result of dealing with you and your business.

In essence, it is cover that protects you in the event of making a mistake.

Vehicle business insurance

LAND MOTOR VEHICLE INSURANCE

As we continue to get to grips with the ways in which our working and commuting patterns change, this is an important one to consider.

While you don’t need business car insurance to drive to work – this will be covered by your regular policy – you will need a business policy if you want to claim mileage expenses.

Of course, if you are driving anywhere, it is illegal to take the wheel without a suitable insurance policy in place.

Others of which to be aware

The following are not typically compulsory policies to take out but often provide the type of cover without which most business owners would rather not operate.

Public liability insurance: If you work among the general public – for example, as a builder or other type of contractor – this policy will cover you in the event of a member of the public suffering an injury or loss that is connected to your activities.

Invoice insurance: A relative newcomer to the insurance scene, this cover allows businesses to take out protection on invoices that might not get paid on time – or at all.

Legal protection insurance: LPI offers you financial assistance if you are required to go to court. This can typically be applied whether a case has been brought by or against you.

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Lexinter Law, with a team of dedicated authors who strive to provide you with all the relevant and actionable tips on the legal aspect of your life. Our goal is to educate you so that you can make legal action with ease, or find the right person who can help you with your unique personal legal dilemma. Take care!

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