As well as public liability insurance, you may need additional insurance for your business.
Employers’ liability insurance
If your business has one employee or more, freelance staff or even volunteers, you will need employers’ liability insurance – it’s a legal requirement. It can cover you should an employee claim compensation for a work-related illness or injury. The minimum level of cover required by law in the UK is £5 million.
Professional indemnity insurance
Professional indemnity insurance, or PI insurance, is designed to cover the cost of paying compensation to a client because your poor service, advice or designs have caused damage to their reputation, or lost them money in sales or a corporate partnership. The client in question could be a company or a member of the public – and you could even have given the advice for free.
Professional indemnity insurance is relevant to businesses that offer knowledge, skills or advice as part of their work, such as marketing agencies, PR consultancies, management consultants, web agencies and design companies. These are all organisations whose advice could lead a company to change its strategy.