There’s no denying that there is a lot to think about when it comes to setting up a business. One of the most important aspects of getting your company up and running is putting the right insurance policies in place. Two important types of cover you should know about are public and employers’ liability insurance. These policies can play a crucial role in protecting your long-term finances, and you may be legally required to have one or both of them in place. To ensure you’re up to speed when it comes to these forms of protection, take a look at this brief guide for start-ups.
Employers’ liability insurance
Employers’ liability insurance refers to a policy that covers the costs involved in compensating employees in the event they are injured or become ill as a result of their work. All companies are legally required to have this form of insurance in place, bar those with no employees or those that solely employ family members. Failing to get such cover could mean you’re fined as much as £2,500 per each day. By law, you need to ensure your cover is for at least £5 million worth of compensation, but most policies provide cover for up to £10 million. When you’re choosing your policy, you should make sure that it covers claims made by all permanent employees, as well as contract, seasonal and casual workers, temporary staff members including students and those on work-placements, and volunteers.
How much your insurance policy costs is determined by a number of factors, such as the type of business you run and number of staff members you have, as well as your previous insurance history. Fortunately, your premium doesn’t have to cost you a fortune. By using an insurance broker, you’ll be able to find an insurance policy that not just fits your needs, but also your budget. For example, Forum Insurance can its tailor insurance packages to make sure they meet your precise requirements.
Public liability insurance
Public liability insurance protects your business financially against claims made by members of the public in regards to incidents that happen in connection with your business. This type of insurance covers you for compensation for personal injuries, loss or damage to property and even death. You should strongly consider purchasing a policy if your business premises is visited by members of the public, customers or clients, or if your company organises off-site events that are attended by the public. You may also require this cover if you run your company from home and people visit your property in a professional capacity.
While this form of protection isn’t always a legal requirement, it usually is for buildings-related insurance where the public may be present. As a general rule, you should consider it to be essential if members of the public interact with your business, either on or off your premises.
Like employers’ liability insurance, the cost of your cover is likely to be based on the type of business you have, the number of workers you employ and your insurance claims history. It’s worth noting that public liability cover often comes as standard with other policies. For example, it usually comes packaged together with employers’ liability.
Getting to grips with both these types of protection is vital if you want to protect your company’s bottom line. Highlighting this fact, figures released by the Associated of British Insurers show that in 2015, liability insurers in the UK – including those providing employers’ and public liability cover – paid out an average of £8.9 million to companies every day.