Why would you get insurance?

Insurances are safety nets, a way to manage risks of loss. Buying an insurance means transferring the cost of potential loss to the insurance company in exchange for a fee, known as the premium. Commercial insurances – insurances aimed at protecting and providing safety nets to businesses, employers and employees – are crucial in protecting enterprises and companies against risks of business failure. 

Is there any mandatory insurance I need to get? What are they?

There are currently 2 types of insurance cover that are required by law in the UK.

Vehicle Insurance

All drivers are required by law to have in force an insurance policy to cover their liability for bodily injury to or damage to third party property which arises from the use of a motor vehicle. You can read more about Vehicle Insurance here.

Employers’ Liability (EL) Insurance

Employers Liability Insurance is required by law if you run a business to provide cover in the event that one of your employees is injured or becomes ill as a result of working for you. Your policy must cover you for at least £5 million and come from an authorised insurer. However, You may not need EL insurance if you only employ a family member or someone who is based abroad. You can read more about Employers’ Liability (EL) Insurance here.