Running your own business is the ultimate dream for many people. Dictating your own schedule and taking the lion’s share of the profits are obvious perks of being your own boss. However, it’s also important to remember the insurance requirements of your business too. It may not be as glamorous as other parts of business, but taking out the relevant business insurance - especially employers’ liability insurance - is an essential part of any business.
Employers’ liability insurance is designed to protect both your company and your employees in the event of a workplace accident. If one of your staff members are hurt or fatally injured at work, your business could be held responsible and face hefty compensation claims and court costs if found to be negligent. Even if you have an impeccable health and safety record, accidents can materialise out of nothing and it’s therefore important to protect against this risk.
Employers’ liability insurance would pay out in such instances, ensuring the long term stability of your company, as well as the welfare of your employees. And, even if you just employ sub-contractors, temporary workers, trainees, or part-time workers, you are still required to have an employers’ liability policy in place.
It’s also crucially important to note that employers’ liability insurance is a legal requirement. The Government has recognised the range of risks posed by the workplace, and operates the Health and Safety Executive (HSE) to ensure that companies are keeping their employees safe. Employers’ liability insurance is seen as paramount by the HSE, and owners found trading without it can be fined up to £2,500 for every day they have been unprotected. A minimum of £5 million of employers’ liability is required for firms with employees.
Another important type of insurance that firms may need to consider is professional indemnity insurance (also known as PI insurance). Unsurprisingly, professional indemnity insurance is important insurance for professionals. It works in a slightly different way to liability insurance, protecting against claims of negligence or malpractice as a result of poor advice, planning or other professional services (as opposed to physical injury).
The types of occupations that may require professional indemnity insurance include accountants, financial advisers, planners, architects, and other types of professionals. All of these have the same thing in common in that they carry great responsibility in a skilled environment, meaning that the risks can be vast.
With both liability insurance and professional indemnity insurance, you can help support the long term future of your firm and get on with the job in hand in perfect peace of mind.