Expanding into a new geographical market is a complex process, with everything from distribution channels and logistics to legal and regulatory compliance to consider. As an international organisation entering the United Kingdom (UK) market specifically, you will be presented with various insurance considerations to ensure compliance, mitigate risks and safeguard your business interests.

This includes insurances that organisations are required to have when operating in the UK, others that are necessary depending on the nature of the business, and additional classes that are recommended to ensure your protection. By understanding and addressing these insurance considerations you can minimize vulnerabilities and confidently pursue your objectives in the UK.

Compulsory Insurances

• Employers’ Liability

Once the first employee is hired (even on a casual basis) in the UK, the organisation is required by law to take out Employers’ Liability insurance. This policy will provide indemnity for employees if they fall ill or are injured in the course of their work and covers any legal and compensation costs involved in defending the case.

This mandatory insurance has a minimum coverage threshold and must be obtained from an authorised insurer. Organisations who fail to obtain Employers’ Liability Insurance can be fined £2,500 for each day they go unprotected.

• Third Party Liability for Motor

Where an organisation operates a company vehicle, they must have, as a minimum, Third Party Liability insurance, although at Griffiths & Armour we recommend a fully comprehensive motor insurance policy.

Third Party Liability covers injuries to third parties by your vehicle, whereas a fully comprehensive policy further extends the cover to include own vehicle damage plus fire and theft of the vehicle, ensuring peace of mind.

Recommended Insurances

• Public/General Liability

A Public Liability insurance policy provides legal liability for injury or damage to third parties and/or their property. Whilst not required by law, if members of the public come to the site of the organisation or could be hurt in any way by something the business does, this insurance is strongly recommended.

It is also possible that other organisations require a Public Liability policy in place to be able to engage in their contracts or to operate on their sites. Public Liability insurance can also open up new business opportunities with many sectors, including events, trading authorities and public sector contracts which often require this type of cover as part of their procurement selection criteria.

• Package/Combined Policy

This policy can include cover for Employers’ Liability and Public Liability alongside insurance cover for any assets, like buildings, stock, equipment and money.

Purchasing a package policy could be more economical for an organisation as individual insurance policies can have minimum premium requirements, that together exceed the package policy premium.

• Professional Indemnity

A Professional Indemnity policy provides cover for your organisation against legal liability arising out of professional negligence.

Some regulators require Professional Indemnity insurance for specific sectors, including solicitors, accountants and some healthcare professionals.

Many consultants including consulting engineers, advertising or PR agencies, and designers also choose to invest in the security that Professional Indemnity insurance provides in order to meet client requirement and to benefit from financial protection in the event of a claim arising.

• Management Liability Insurance

The primary coverage under such a policy is Directors’ & Officers’ Liability protecting the personal liability of senior company individuals for their actions in the running of the business. Cover can also be extended to protect the entity as well as in respect of Employment and discrimination allegations.

• Cyber Insurance

All business face first and third party exposures arising from management and ownership of data and cyber insurance is designed to cater for such risks. Whether it be an interruption to your business caused by a malicious cyber attack or the accidental loss of employee personal data, a cyber insurance policy is design to assist you with expert and financial support in recovering from such incidents.

Other Insurances

This article highlights those insurance policies that are frequently required by organisations setting up in the UK, however many other types of insurance are available which may be appropriate for your business.

With almost a century of experience facilitating insurance coverage in the UK and long-standing relationships with insurers across a diverse range of sectors, Griffiths & Armour is ideally placed to help advise you. To discuss your requirements in more detail, as well as any specific queries you may have relating to insurance in the UK, please please get in touch.