Is Public Liability Insurance Mandatory?

[Wanderer]

Check policy but I think you should find it will refer to you or the "insured" which is both the company and directors.

PS Not that any insurance policy is worth the paper it's written on in my experience.

I'll check mine too when i get a chance.

Inclined to agree with that last statement. How else can you buy millions of pounds of indemnity for a few hundred quid? I mean, I wonder if the insurers EVER pay out anything on a policy like this?

[matzie]

Employer's liability is not required if you/spouse are the directors/sole employees of your company - what are you gonna do, sue yourself for wrongful dismissal?

I'm not entirely sure that's right - the exemption for family businesses doesn't apply to incorporated businesses; if you pay a salary to your spouse as many of us do, I believe EL is required by law. I'm shopping for quotes right now.

[Clare@InTouch]

I'm not entirely sure that's right - the exemption for family businesses doesn't apply to incorporated businesses; if you pay a salary to your spouse as many of us do, I believe EL is required by law. I'm shopping for quotes right now.

I believe it depends on the shareholdings and employees....

"Limited companies with only one employee, where that employee also owns 50 per cent or more of the issued share capital in the company, are also exempt from compulsory EL insurance."

Employers' liability insurance | Business Link

[Wanderer]

I'm not entirely sure that's right - the exemption for family businesses doesn't apply to incorporated businesses; if you pay a salary to your spouse as many of us do, I believe EL is required by law. I'm shopping for quotes right now.

Do any of your employees have an employment contract? Is it possible they would take you to a tribunal and sue you for wrongful dismissal or claim for maternity/sick/holiday pay? If not then what risk are you insuring against exactly?

[SueEllen]

I'm not entirely sure that's right - the exemption for family businesses doesn't apply to incorporated businesses; if you pay a salary to your spouse as many of us do, I believe EL is required by law. I'm shopping for quotes right now.

It's not plus if your spouse wants to get the company money from you it would be through DIVORCE.

Would you seriously have a spouse if you did something that wrong?

Anyway a bit of common sense needs to be applied if you were in a company where your employees were for example on building sites regardless of whether they were related to you or not, then yes it would be a good idea to get EL due to the accident risks. There as if your only other employee just does admin work for you at home then it's not necessary.

BTW insurers policies are done on risk. If they had to pay out for loads of companies via EL then the policy prices would go up.