What insurance do I need by law?
If you employ other people (even just one), or have any volunteers, apprentices or work experience chaps, you’ll need employer’s liability insurance by law. This means that you’ll be covered if any of your employees suffers an injury or illness whilst working for you, where you are to blame.
You’ll need to make sure that you’re covered for at least £5 million but most insurers will offer £10 million. If you don’t have employer’s liability insurance when you need it then you’ll be fined £2,500 for every day you don’t have it.
There are a few exemptions from those needing employer’s liability insurance.
If you have any vehicles that you use for your business, then you’ll have to have third party motor insurance to cover you and any employees that will drive the vehicles. Your insurance must provide at least £1 million cover for property damage and an unlimited amount for personal injury.