What insurance cover do I need to have in place?

The law says that you must have employer’s liability insurance when you employ members of staff, and motor insurance when you use a company vehicle on a public road. People are confused over the three most common types of business insurance policy available:

Employer’s liability compulsory insurance

You need this by law to make sure that all employees are covered by enough insurance during the course of their employment. The minimum level of cover you need is £5 million.

You must renew your policy each year and display a valid copy of your certificate where your employees can easily read it. From 1st April 2009 you may display your certificate electronically. If you choose this method you need to make sure your employees know how and where to find the certificate and have reasonable access to it.

From 1st April 2009 there is no longer a legal requirement for employers to keep out-of-date certificates. However, employers are strongly advised to keep, as far as is possible, a complete record of their employers' liability insurance

Public liability insurance

This covers your liability to another person you do not employ such as a customer or visitor who is injured as a result of your business’s activities (for example, they trip on a trailing cable or damaged carpet). Public liability will also cover you if one of your employees, through the course of their work activities, injures someone or damages their property. This particular cover is voluntary and you can choose the limit of insurance you need.

Product liability insurance

This covers injury or property damage which has arisen from a product that you supplied. This cover is voluntary and you can choose the limit of insurance you need.

The British Insurance Brokers’ Association can give you names of brokers who can advise you on getting insurance. Contact BIBA on 0870 950 1790 or see www.biba.org.uk

For more information visit the Insurance page