Required Business Insurance

There is some insurance that anyone owning and operating a business in the UK must have. There are additional coverage policies that merchants can buy, but the following are coverage types that are required by law for your store to be operated in the UK.

The first policy you must have in effect is an employer’s liability policy. It does not matter if you are a small merchant and have only one employee, you must carry this type of coverage. This policy will protect your employee should they sustain an injury at your place of business, or become ill due to something related to their job duties.

The second type of coverage that is absolutely mandatory is a public liability policy that will protect anyone who does not work for you if they should be injured on your property. This policy type will also cover damages their property might sustain as a result from something, or someone who is working for you at the time of the damages.

Business Insurance

The third main policy you must carry is product liability coverage. This will cover you in case someone claims that the product you make caused damages to their personal property or to them. This coverage extends to the supply of products you make to other commercial merchants, and will cover the legal expenses you may incur, as well as covering the amount you need to pay in order to comply with any court rulings against you.

Professional indemnity is required of any business that offers investment advice, in any form. This is not a compulsory policy for all businesses, but it will protect you in the event that a client files a lawsuit claiming that you gave them poor advice or services, and as a result they suffered some type of loss. You cannot afford to operate a business that gives financial advice without having a professional indemnity policy covering all possible claims.

Accidents cannot be predicted, or they would not occur, and anytime you are working with the public you will find that people cannot be predicted either. You must protect yourself from lawsuits, and injury claims, if you are to stay in business.