Insurance

1. Compulsory Cover

As soon as you start a business, you have legal obligations to your employees, to your customers and to the general public.

1.1 All businesses except those only employing close family or where the owner is the only employee must purchase employers' liability insurance.

This covers you against claims from employees for accidents or sickness they may suffer as a result of working for you.

• By law you must have cover of £5m, though most policies now automatically provide £10m cover.
• You must exhibit a Certificate of Employers' Liability Insurance at each place of business - and keep it for 40 years.

1.2 You must have motor vehicles liability insurance.

• All vehicles used on the road must be insured for third-party liability, at least.