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By miguel-ingles
- In Uncategorized
Insurances are a key aspect to take into consideration when setting up a company. In the British country, there are many different types that protect the employer, the employees and the assets of a corporation about several things. Moreover, failing to hire the correct services may end up in fines for the enterprise. Due to this, in this article, I will explain the types and obligations of business insurances in the UK.
Types of Business Insurances in the UK
Employers’ Liability Insurance
If a company employs at least one worker, it will be a legal requirement to count with one of these policies. It must cover a minimum of 5 million GBP, and it must come from an authorized insurer.
These types of insurances will protect the employer from injuries or illnesses an employee picks up as a result of working for your business.
You must take into consideration that, if you have a company with many hired workers, it may be necessary to top up this cover.
Public Liability Insurance
The public liability insurance covers all compensations that must be paid for damages caused to a client or their assets because of your business activities.
On the other hand, there also exists a variant: the product liability insurance. This policy will be similar as the previous one. However, it will cover those harms resulted from a product the company sold. Every enterprise that trades some type of object should contract this insurance but, especially dropshipping corporations should do it. These, send a product from a manufacturer to a client, without assessing its quality.
Neither of those two are mandatory, but they are highly advisable to hire.
Commercial Property Insurance
This type of policy covers the commercial goods of a company: its offices, the content that is inside the building and some exterior items, such as fences and billboards. It will protect them from events like fires, thefts earthquakes, floodings caused naturally or as a result of pipes breaking, or other environmental disasters, among other dangers.
It is not mandatory neither, but businesses that operate in certain sectors should hire them. For example, those that manufacture goods, physical shops, offices or NGOs.
Cyber Insurances
With the rise of internet commerce and exclusively online companies, the number of cyberattacks towards those businesses has increased. For this reason, insurers have created new cyber insurances. These cover both the company’s, the employee’s and the clients’ damages that cyberattacks may cause.
As in the earlier case, it is not mandatory. Nonetheless, experts recommend its contracting, especially if the enterprise does its activities online, if it has a large relevance or if it works with personal and other corporation’s data.
In addition to the previously mentioned, there also exist other policies that may be useful for a company. For example, the directors’ and officer’s insurance, the business interruption protection or the equipment breakdown policy.
Obligations of Business Insurances in the UK
If a business uses certain equipment, it does specific activities or employs workers, it must hire several types of insurances.
In addition to the previously mentioned employers’ liability insurance, an enterprise must insure the vehicles it uses. They must also count with a professional indemnity insurance. It protects the company from possible negligence it or any of its employees have made which has led to the client losing money. You will hire it especially in the finances, accounting or law sectors.
Not having these mandatory insurances may end up in fines for the corporation. For example, in the case of employers’ liability insurance, authorities will fine the company that is not insured with 2500 GBP. Or 1000 GBP if it does not show in a visible location the corresponding certificate.
At last, it is advisable to hire the services of a broker to contract insurances, principally the mandatory ones. This will ensure that you have the correct policies and will make the process easier, especially for foreigners.