Managing Insurance Risks

1. Legal Requirements

Risk management is not just good business practice. In many cases, it is also a legal requirement.

1.1 Health and Safety legislation requires you to carry out a risk assessment of your business.

You must ensure the health and safety of all employees and visitors to your premises.

(See Health and safety and Health and safety risk assessment.)

1.2 Taking precautions to prevent injury to employees is a legal requirement.

All businesses must have employers' liability insurance (except those only employing close family or where the owner is the only employee) to compensate employees who are injured or suffer illnesses through working for them.

• If you fail to ensure employees are adequately insured, you could face criminal proceedings.

1.3 Fire regulations require you to carry out a risk assessment and, in certain instances, to have an inspection and certificate from a fire prevention officer.

1.4 Employment law requires you to follow set procedures when recruiting, promoting or dismissing employees. (See Employment law: the basics).

1.5 The Companies Act puts responsibilities on directors of a limited company to protect the assets of the business. (See Directors' responsibilities.)