Can you operate a business without public liability insurance?

No, public liability insurance isn't mandatory. The law says that you must have employers' liability insurance if you have any employees that aren't directly related to you – whether or not you get public liability is up to you.

Is it illegal to work without public liability insurance?

So, Public Liability Cover is not compulsory, unlike other insurance policies (motor insurance and buildings insurance, for example). But by not having it in place, you will not be subject to any legal action made against you, so it's an important commodity for any small business.

What happens if I don't have business insurance?

Business owners who don't have public liability insurance are taking a significant risk. Not only can they face legal implications and potential lawsuits, but also significant financial risks that could potentially put their business in jeopardy.

Do I need to register my business to get public liability insurance?

As such, you'll be able to buy business insurance while you're in the midst of settling the paperwork you need to set up and register your company. Yes, you can get business insurance before registering your business.

Do I need business insurance to travel to work?

If you only use your vehicle to commute to and from work your personal insurance policy will normally keep you covered. You may not need business cover. But, the reality is many people are still unaware what constitutes business use of a vehicle.

Public liability insurance explained

Does commuting count as business use?

No, commuting is not considered business mileage. Business mileage is any journey you make while doing your job, such as driving to meetings, visiting clients, or travelling between different work locations. Commuting, on the other hand, is considered a personal journey, even if it is necessary to get to work.

Can you claim business mileage without business insurance?

However, if you are claiming vehicle expenses from an employer, then you are using your vehicle for work purposes and should have business insurance on your vehicle. Regardless of your company policy on claiming mileage, you will need business cover to use your car for work purposes.

How much is public liability insurance?

Compare public liability insurance and get cover from £39 a year. 10% of customers paid up to £38.54 for public liability insurance with Simply Business. Figure based on annual quotes purchased between July 2023 and September 2023.

What business insurance is compulsory?

Employers' liability cover is a legal requirement for most businesses with staff, public liability insurance is important if you're in contact with members of the public, and professional indemnity insurance is useful if your business offers advice.

What insurance is mandatory for business UK?

What types of business insurance are required by law in the UK? The only type of business insurance that is mandatory under UK law is employers' liability cover, which is a legal requirement for most businesses that employ staff, even on a casual basis.

How much extra is it to add business insurance on a car?

In some cases, tailored business car insurance can actually be cheaper than standard car insurance. According to gocompare.com, on average, fully comprehensive business car insurance costs around £92 less than standard fully comprehensive insurance – £431.35 a year compared with £544.02.

Do I need public liability insurance if I'm a sole trader?

Some sole traders think that their business is too small to worry about insurance but this couldn't be further from the truth. Small businesses often face the same risks as much larger companies and Public Liability insurance is almost always needed; whatever size business you run.

How much is business insurance UK?

The average annual cost for standard PL insurance in the U.K. runs about £118 for small businesses but can be significantly higher for those operating in high-risk fields. Public injury claims in the U.K. can cost upwards of £100,000 in some extreme cases, though most fall between £10,000 - £20,000.

What insurances are required by law UK?

Third party insurance is the legal minimum. This means you're covered if you have an accident causing damage or injury to any other person, vehicle, animal or property. It does not cover any other costs like repair to your own vehicle. You may want to use an insurance broker.

Do you need insurance for a limited company UK?

Does a limited company have to be insured? If you employ anyone, even from home, employers' liability insurance is usually a legal requirement. Other than that, there's no legal requirement in the UK to have specific business insurance in place.

Is public liability insurance mandatory in UK?

Though public liability insurance is not mandated in the UK, you may feel you need this cover to help protect your business from the impact of third-party compensation claims for injury or property damage.

Can I buy public liability insurance for 1 day?

One Day Event Public Liability Insurance. Even if you're running a one-day event for colleagues, friends, family or the public, it's always worth taking out public liability insurance for one day.

Who pays public liability?

Depending on the level of coverage, Public Liability Insurance covers your business for compensation payments and legal fees if your business is found responsible for someone being injured. The affected person could be a member of the public, a customer, a client, a visitor to your workplace premises, or a contractor.

How many points do you get for no business insurance?

An IN10 conviction is given to those who are caught driving without insurance. It will remain on your licence for four years and is often accompanied by 6 to 8 points.

Is the 45p per mile taxable?

The 45p/25p per mile tax-free mileage allowance can be used to cover things other than fuel, including running costs such as insurance and repairs. The portion used for fuel is subject to AFR, which you can claim VAT back on.

Do HMRC check mileage claims?

Yes, but things can become a bit more difficult because HMRC do need some proof confirming that your workplace is 'temporary' and the distance you travelled. Other evidence that can be accepted includes a statement from your employer which explains your job title and temporary workplace status.

What is the 10 mile rule for business mileage HMRC?

The 10 mile rule

Journey A: As the temporary place you are visiting is more than 10 miles away from your permanent place of work, your travel to/from the temporary place of work is allowed in full.

What are the HMRC rules for business mileage?

What are the HMRC mileage rates? The HMRC mileage rates are 45p per mile for the first 10,000 miles and 25p per mile after that for business-related driving. If you ride a motorcycle, the rate is 24p per mile, and for cycles - 20p per mile.

What is the HMRC guidance for business mileage?

Employees can claim the first 10,000 miles at a rate of 45p per mile within a tax year. After surpassing 10,000 miles, the rate will go down to 25p per mile. The following rates are based on the official HMRC sources and last updated in January 2024.

How to get cheaper business insurance?

The higher you'd like your pay-out to be, the more you'll be expected to pay in premiums. Level of excess – you'll always have to pay a compulsory excess, but by choosing a higher voluntary excess on top of that, your premium is likely to be cheaper. Be aware that you'll need to pay more when making a claim though.