All businesses should have insurance. Public liability insurance protects you if there is an accident in your premises or if you kill or injure someone or damage someone’s property. If you get took to court this will cover your costs and any compensation you may have to pay.
Public liability insurance usually covers:
- Compensation payments to the person injured.
- The cost of repairing damage.
- Legal fees involved in a court case.
- Any costs for hospital treatment and ambulance services that can be recovered by the NHS, where personal injury compensation is payable in the Injury Costs Recovery scheme.
The cost of your policy will depend on the type of business you have and the risks involved and how many employees you have. Good news is though that your insurance is an allowable expense so this would go in your expenses and reduce your profit which brings your tax down.
Employers’ Liability Insurance
If you employ people, you are responsible to protect them. This insurance will cover them against compensation claims if they hurt themselves or get sick from working for you. It will cover previous employees who later become ill from working for you also. So get yourself some Employers’ Liability if you meet the criteria below.
- You deduct income tax and National Insurance from employees' salaries.
- You control where, when and how they work.
- You supply their work materials and equipment.
- You have a right to any profit your workers make.
- You require them to carry out the service you employ them for, and they cannot employ a substitute if they are unable to work.
- They do the same work under the same conditions as other people you employ.