Category: Laws, rules and regulations

09:40:40 GMT • 11 November 2024

A Guide to Health and Safety for a Small Business

26 January 2024

•

8 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Get small business insurance from Protectivity

As the number of small businesses grows every year, the commitment to health and safety is not just a legal necessity but a fundamental obligation to customers and teams. As regulations evolve and workplaces transform, ensuring a safe and secure environment becomes a paramount concern for business owners.

From the formulation of comprehensive policies to understanding certification requirements and the role of the Health and Safety Executive (HSE), we explore the vital components that contribute to a culture of safety and wellbeing in your workplace.

In this guide, we outline the essential steps, practical insights and guidance that small businesses in the UK need to know, to navigate the intricacies of health and safety compliance.

How to practise health and safety as a small business

Ensuring health and safety in a small business is crucial for the wellbeing of employees and compliance with regulations. Businesses manage health and safety through a combination of policies, risk assessments, employee training, regular inspections, emergency preparedness, compliance with regulations, and ongoing communication with employees.

Read more detail about the various elements of health and safety advice for small businesses.

Develop a health and safety policy

You’ll need a health and safety policy for your small business, outlining your commitment, procedures, and responsibilities around health and safety in the workplace. It is a legal requirement for small businesses to have a health and safety policy. The Health and Safety at Work Act 1974 places a duty on employers to ensure, as far as reasonably practicable, the health, safety, and welfare of their employees at work.

So what exactly is it? A health and safety policy is a key document that outlines how a business intends to meet this duty. The size and complexity of the policy may vary based on the individual business. However, having a written policy is a legal obligation for anyone with five or more employees, to demonstrate that you will meet health and safety standards. If you have fewer employees than this, it isn’t a legal requirement to write it down but it may be useful for you to refer to.

You should be able to find free health and safety policy templates for small businesses in the UK if you need guidance, within many online resources. However, the policy needs to cover these areas:

Part 1: Statement of intent – this is where you’ll detail your own commitment to health and safety, with information on your general policy. It will need to be signed and reviewed regularly by the employer or most senior person in a company.
Part 2: Responsibilities for health and safety – this part needs to include names, positions and duties of the business employees who are responsible for adhering to health and safety guidelines.
Part 3: Arrangements for health and safety – this is where you can outline the plans you’ve set in place to achieve the health and safety objectives in your policy, such as risk assessments and training.

Risk assessment

Small business owners must systematically identify and evaluate potential hazards within the workplace. This includes scrutinising physical, chemical, biological, ergonomic, and psychosocial factors. The process also extends to implementing effective mitigation measures, regularly reviewing and updating assessments to align with evolving workplace conditions.

Proactive risk management not only creates a safer working environment but also serves as a foundation for compliance with health and safety standards, safeguarding the wellbeing of employees and the overall integrity of the business.

Training

Just like any other business, small businesses with employees will benefit from delivering comprehensive training for effective health and safety. Educate teams on safety protocols, emergency procedures, and proper equipment use. Regularly update training so that it’s relevant to evolving risks and regulations. A well-trained workforce ensures awareness, and compliance, and contributes to a secure working environment.

Emergency preparations

Establish robust emergency preparedness in small businesses for effective health and safety. Develop clear evacuation plans, conduct drills, and ensure accessibility to first aid resources. Communicate emergency procedures to employees, for the best chance of a swift and coordinated response. Prioritising preparedness safeguards lives and minimises risks during unforeseen events.

Personal protective equipment (PPE)

Personal protective equipment (PPE) is vital for health and safety in many small businesses. It plays a crucial role in injury prevention and employee protection. Assess workplace risks to understand the type you’ll need, before providing appropriate PPE. This could include gloves, masks, and helmets. Regularly train employees on PPE protocols and proper usage, for a secure environment and compliance with safety standards.

Regular inspections

Regular inspections are vital for small businesses practising health and safety. Conduct systematic checks to identify and mitigate potential hazards. Inspect equipment, facilities, and work processes to make sure they’re all compliant, creating a safer workplace. Proactive inspections contribute to risk reduction, regulatory adherence, and the overall welfare of employees.

Health and safety committee

If you have a team, you might like to create a committee to involve employees in the decision-making process regarding health and safety. Create a health and safety for small business checklist and share it with everyone, or develop it together. This ensures that the whole team are informed on how to support the business in maintaining the required standards.

Record keeping

Effective record-keeping is integral to practising health and safety in a small business. Maintain detailed records of risk assessments, safety training, and regular inspections. Document incidents, near-misses, and corrective actions taken. This information not only ensures compliance with regulations but also aids in identifying trends and areas for improvement.

Accurate record-keeping demonstrates your commitment to health and safety protocols, facilitates the tracking of employee training and equipment maintenance, and is invaluable in the event of audits or inspections. Regularly review and update records to reflect changes in the workplace, for a proactive approach to maintaining a safe and secure working environment.

Enlist professional support

Health and safety consultants for small businesses can offer you invaluable support. You may wish to invest in professional help from someone who specialises in guiding organisations through regulatory compliance, risk assessments, and policy development. They’ll tailor their expertise to the unique needs of small enterprises, so that they can give you practical solutions to enhance workplace safety and adhere to legal standards.

From conducting thorough safety audits to offering employee training, these consultants play a pivotal role in helping you create a secure working environment. By collaborating with them, you can navigate complex regulations efficiently, mitigate risks, and put employees and customers first. It can be a worthwhile business expense for the benefits to your business reputation, as well as the time and stress it saves you in running your company safely.

Does my business need a health and safety certificate?

In the UK, small businesses typically do not require a specific health and safety certificate. As discussed above, the focus is on the need for small businesses to assess their operations, identify potential risks, and implement measures to ensure compliance.

While there isn’t a universal certificate, certain industries or activities might necessitate specific certifications. Consultation with regulatory authorities and professional advice can clarify whether any industry-specific certifications or registrations are mandatory for your company.

Do I need to register my business with HSE?

In the UK, not all businesses are required to register with the Health and Safety Executive (HSE). Registration is generally not mandatory for most low-risk businesses. However, you are still obligated to ensure health and safety compliance. If your business involves higher-risk activities or falls within certain industries (e.g., construction, manufacturing, or hazardous materials), you may need to register with the HSE.

It’s recommended to use the HSE’s online tool or contact them directly to determine your specific obligations. Keep in mind that even if registration is not mandatory, compliance with health and safety regulations outlined by the HSE is essential for all businesses in the UK.

Get small business insurance with Protectivity

When it comes to mitigating financial risks and protecting your business against unexpected events, having the right insurance is crucial. It gives you coverage for property damage, liability claims, legal expenses, and employee-related risks. Running a small business can be unpredictable enough, so you can enjoy more peace of mind if you protect yourself against accidents or lawsuits, which can threaten the financial stability of a small business. This ensures that your company can recover and continue operations in the face of adversity, for a resilience that instils confidence among any stakeholders and safeguards your investment.

Protectivity’s small business insurance offers you a safety net, with up to £5 million worth of public liability and up to £10 million worth of employers’ liability to choose from. You can also opt for a products liability insurance extension, or optional commercial legal protection.

Read more and get an online quote tailored to your needs. If you need any support, our team are on hand to answer your questions.

Get Small Business Insurance from Protectivity

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09:40:40 GMT • 11 November 2024

What is Employers’ Liability Insurance?

22 May 2023

•

6 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

If you employ any members of staff – or you’re starting a business where you will be – then employers’ liability insurance is one of the most important things you need to secure. Not only is it required by law, but it gives you vital protection if somebody who works for you gets hurt or ill while on the job. It’s one of a number of insurance protections that, in the event of a big claim being made against you, can make the difference between whether your business survives afterwards or not.

This guide tells you all the key facts you need to know about employers’ liability insurance, including what’s covered, whether or not you might be exempt, and how much you can expect to pay.

Is employers’ liability insurance a legal requirement?

Yes. If you employ at least one person other than yourself, then you must have a valid employers’ liability policy in place, as stated by the Employers’ Liability Act 1969. This also includes any self-employed contractors that you use the services of, any temporary staff, as well as apprentices, volunteers, trainees and those on work experience.

The penalty for non-compliance is extremely severe: for each day that you aren’t covered, you will be fined £2500 per employee.

Beyond this, you may also find that proof of cover will also be inspected by many partner businesses, organisations and clients you want to work with – similar to the requirement to have public liability insurance.

What does employers’ liability insurance cover?

Employers’ liability insurance covers the cost of any compensation claims by employees, as a result of them getting injured or ill as a result of their work. If they suffer any financial loss as a result of their working activities – including if they are working from home – then they have the right to be compensated by you as their employer. If you have employer’s liability insurance in place, then your insurer will take care of all the bills generated (minus any excess you are required to pay, as set out in your policy).

This type of insurance can also cover injuries caused by employees to third parties like customers. For example, if an employee drops a heavy item onto a customer and causes an injury, then your business could be subject to a claim. This doesn’t even necessarily have to be a customer: it also applies to any member of the public, such as a pedestrian who trips over a sandwich board outside the front door of your premises.

Why do you need employers’ liability insurance?

Apart from the fact that it’s required by law, employers’ liability insurance is important because of the sheer scale of how much a compensation claim can cost you.

If an employee is forced out of work because of illness or injury that you’re responsible for – especially if the layoff is lengthy or even permanent – then the bill can run into many thousands of pounds. This is not only due to lost income from time off work, but also any medical bills incurred by the injured party, as well as the legal expenses of defending the claim.

Many larger businesses with high-value turnovers are often able to absorb this cost without resorting to employers’ liability insurance. But smaller operations will find it much more difficult to do so, and the ongoing viability of the business can be thrown into doubt by just one large claim. For sole traders and partnerships that don’t have the protection of limited liability, it could even put homes at risk because of the debt involved.

How much does employers’ liability insurance cost?

Naturally, there is some variation on how much a policy will cost, depending on the number of employees you have. If you’re a small operation with only one or two employees, you will face a much smaller bill than a bigger company with a much larger workforce. The amount of time that your business has been operating, the nature of your business, and the level of risk that your employees are exposed to will also influence your quotes, too.

The cheapest premiums can come in at less than £50 a year (around £4 a month if paying through a flexible payment plan), but this can run into the hundreds for riskier types of work where the chance of a claim is higher.

Who is exempt from needing employers’ liability insurance?

Obviously, if you are self-employed and work entirely on your own, then you don’t need employers’ liability insurance – you don’t have any employees to protect, and your own protection would come from personal accident insurance instead. This also applies if your business is a partnership, and there are no employees other than you and your partner(s).

If your company only employs people who are directly related to you, then you are also exempt from the legal requirement to have employers’ liability insurance. However, we recommend taking a policy out anyway, as you will still be vulnerable for a compensation claim, just as you would be from anyone else that you employ.

Get employers’ liability insurance with Protectivity

Whether you’re running a large enterprise like a gym with dozens of staff, or a small nail salon with just one other employee, taking out employer’s liability insurance is essential. But whatever your business, Protectivity has the right cover for you.

We have years of experience in providing comprehensive policies for sports, leisure and beauty businesses, encompassing employer’s liability cover. Combined with other types of insurance, including public liability, personal accident, equipment cover, professional indemnity and more, you can grow your business in the confidence that you won’t end up out of pocket if the unforeseen happens.

Our flexible payment plans and affordable rates mean many of our policies cost just a few pounds a month. Find the right policy option for your enterprise by exploring our full range.

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12:29:44 GMT • 14 November 2024

Benefits of Employers’ Liability Insurance

2 May 2023

•

5 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Employers’ liability insurance is one of the most important types of business insurance. Should an employee suffer an injury or illness while working for you, and then claim compensation from you, employers’ liability insurance can help you to cover the cost.

Employers’ liability insurance isn’t just nice to have – it’s a legal requirement. Without it, you could face a fine of up to £2,500 for every day your business isn’t properly insured.

Here, we’ll explore the benefits of employers’ liability insurance, and how it can protect both your business and your employees.

1. Protects your business from unexpected legal and financial risks

Regardless of how much attention you pay to health and safety at work, injuries can still happen. And if your employee or ex-employee chooses to sue you due to an injury or illness caused by their work, you’d need to pay compensation. These compensation payments can be significantly expensive, and even if you won the court case you’d still need to fork out expensive legal fees. With employers’ liability insurance, your insurer covers the cost, which can protect your business from financial strain.

2. Covers the cost of employee injury or illness

Employers’ liability insurance will pay compensation if an employee or ex-employee is injured or becomes unwell because of the work they do for you. For example, if a factory worker tripped over some equipment that hadn’t been properly stored while at work, this may cause them a serious injury. They may then choose to sue their employer for this, and the court can order the employer to pay compensation to cover the cost of the injury, and any other damages. Without employers’ liability insurance, your business would have to find a way to cover the cost of compensation, to contribute to the cost of medical care and lost income, which could be detrimental to your business’ financial well-being.

3. Demonstrates compliance with legal requirements

Having employers’ liability insurance is compulsory for most businesses, because you’re responsible for the health and safety of your employees while they’re at work. The Employers’ Liability (Compulsory Insurance) Act 1969 requires every employer, unless exempt, to insure against liability for bodily injury or disease sustained by their employees while in their employment. You are required to have at least £5 million of cover from an authorised insurer. Without it, you can be fined up to £2,500 for every day you’re not properly insured.

4. Provides peace of mind for you and your employees

Insurance serves as a safety net against the unexpected. As an employer, you may try your hardest to avoid health and safety risks, but this won’t eliminate them completely. Employers’ liability insurance can give you the peace of mind that should an employee become injured or unwell due to an incident or accident at work, you’ll have financial support there should you need it.

5. Protects your reputation

The last thing you want to happen is your employee or ex-employee claiming compensation and your business not being able to afford it – which could be detrimental to your brand’s reputation. Instead, with employers’ liability insurance you’ll have the reassurance that should something go wrong, you have insurance to fall back on. That way, you’ll be able to cover any legal and compensation costs that may arise, to ensure your public image remains positive.

6. Helps your business to grow

As mentioned, employers’ liability insurance is a legal requirement. If your business is just starting out, making sure you have the right insurance will be another thing ticked off your list, so you can focus on taking care of day-to-day responsibilities.

7. Tailored coverage to suit your business needs

When getting your employers’ liability insurance, you’ll usually be asked a series of questions about you and your business, to ensure your policy covers everything you need it to. The application process should be straightforward – simply let your insurer know how many people you employ and what work they do for you, and you’ll get an insurance policy that covers all your needs. That way, should disaster strike, your business and employees will be taken care of.

Ready to protect your business?

As a business owner, your business isn’t just your source of income, it’s also the product of all your hard work – so you’ll want to know it’s well protected should the unexpected happen and you need some support. Get a quote today for your small business with Protectivity, whether that be personal trainer insurance, liability insurance for an event, a small dog grooming business.

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09:40:41 GMT • 11 November 2024

How to Verify Business Insurance Coverage

1 May 2023

•

4 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

Getting insured is one thing – making sure that it’s the right insurance for you, having proof of coverage, and ensuring that third parties you’re working with are also protected is another. Let’s take a look at how to verify business insurance coverage, both for yourself and anyone you might choose to work with.

What is business insurance verification?

Business insurance verification is ensuring that the correct cover is in place before embarking on a project or agreeing to work with another business. If you are in negotiations with another business to carry out some work for them, they might ask you to verify your business insurance coverage to prove that you’re covered against any accidents that might occur. This is their way of protecting themselves and ensuring that the cost of an unfortunate event wouldn’t impact them. They will most likely ask you to provide a COI – a certificate of insurance. Likewise, you might want to see a COI from them.

Verifying your business insurance step by step

Step 1

A third party has requested to see a COI to prove you have the correct protection. Make sure that you confirm with them what coverage they need to see evidence of, in case you need to expand your policy to meet their needs.

Step 2

Contact your insurance company and explain that you need a COI to verify your business insurance. They will provide you with a certificate, which you should then make a copy of for your personal records, before sending it on to whoever has requested it. While you may be charged an admin fee, the certificate itself shouldn’t cost anything.

Step 3

Ensure that the third party you are working with has received all of the proof of insurance that they need, and that you won’t need to provide any further documentation. If they have sent you a COI to verify their own insurance, confirm that you’ve received it.

Step 4

If you have to check over a COI that you have requested, you should confirm that all of the details on the certificate match those that have been communicated to you by the third party you are working with. This includes names, addresses, and registered company names. Even if they were to cancel their policy immediately after providing you with a COI, you can then safely say that at the time an agreement was made, you had evidence that they had all of the coverage that was needed.

Why do you need to verify coverage?

It is important to verify your coverage to ensure that, should something go wrong, you and anyone you’re working with have the right level of protection. When it comes to your business, this might include protecting your property, your premises, and your employees. Verifying coverage in this way minimises any potential risks, and lets you carry out your business more confidently.

When do you need to have insurance verified?

Your insurance should be verified before any work is carried out or events are held pertaining to your business, or that of the third party you are working with. Essentially, you should have verified your insurance before there is a chance for an accident to happen that could result in a claim.

Sometimes obtaining a COI can take a few days, or in the worst case scenario more than a week. This could cause a delay in reaching an agreement with the third party you want to work with, which could hurt your relationship and impact your business prospects. It’s best to be proactive and request a COI – whether from your insurance broker for yourself, or from your third party – as soon as possible.

Ready to protect your business?

Whatever your business, Protectivity can provide you with the insurance you need to keep yourself and your employees protected as you carry out your work, be it dog grooming insurance, hairdressers insurance, counselling insurance or offering holistic therapy insurance. We provide unique products and cover to suit a wide variety of niche businesses, because we understand that when it comes to your small business you might not be looking to fit the mould.

Protect your business with our small business insurance – get a free quote today.

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09:40:41 GMT • 11 November 2024

Employers Liability Insurance vs Personal Accident Insurance

29 April 2023

•

6 mins read

Contributors

My main focus is managing the blog and product content for the Protectivity website ensuring everything aligns wi...

As a business owner, having insurance in place can give you the peace of mind that should the unexpected happen, you’ll have the support there to put wrong to right. When searching for business insurance, you may have come across the terms employers’ liability insurance and personal accident insurance. But what do these terms mean, and what is the difference between them?

Here, we’ll compare employers liability insurance vs personal accident insurance, so you can determine which type of insurance is right for your business.

What does employers’ liability insurance cover?

As soon as you become an employer, you’ll need to get employers liability insurance. In fact, it’s a legal requirement for most businesses in the UK to have (unless you operate alone or only employ family members, for example). If you don’t, you can be fined £2,500 every day you aren’t properly insured. Your policy must come from an authorised insurer and cover you for at least £5 million.

But what does employers’ liability insurance cover you for? It’s there to protect you if your employee claims compensation for an illness or injury they claim was caused by their work. Let’s say a worker was badly injured by tripping over a box left on the floor in the warehouse. Or an employee was electrocuted by faulty electrical equipment in the office. They could claim compensation against you for this happening, and the court could then order you to pay compensation for the injury, costs or other damages – which as you can expect, can be very expensive. That’s where employers’ liability insurance comes in – to cover the compensation payment and any legal costs if an employee claims compensation for a work-related injury or illness.

Like all types of insurance, employers’ liability insurance is there to protect you against the unexpected. No matter how careful you are at work, injuries do happen. If you don’t have employers’ liability insurance, it could significantly impact your business’ finances if you face a compensation claim.

What does personal accident insurance cover?

As the name suggests, personal accident insurance covers you if you suffer a serious injury or death following an accident. It’s there to protect you and your family against loss of income should you be unable to work, to help cover the cost of bills and other living expenses. It’s a type of personal insurance, similar to life insurance and income protection cover. With this in mind, personal accident insurance may be a type of cover you or your employee chooses to take out, to protect you/them financially against the unexpected.

Often, personal accident cover is included in life insurance and car insurance policies – so it may be worth you checking if you’re already covered before you take out another separate policy.

Most personal accident insurance policies will cover you for:

An accident or injury that happens at work
An injury caused by someone being violent towards you
Road traffic accidents
Permanent disability caused by an accident
The loss of your body parts or the loss of the ability to use them fully
Injuries caused by falls, slips and spillages

Pros and cons of employers’ liability insurance

When exploring your insurance options as a business owner, it’s important you know exactly what you’re covered for. Here, we’ll dive into the potential pros and cons of employers’ liability insurance:

Pros

Provides legal and financial protection should your employee or ex-employee claim compensation against you for an injury that happened at work
Helps cover the costs of employee injuries or illnesses
Without it, you could face a daily fine – so it’s a good idea to take out the insurance as soon as possible

Cons

Premiums can be expensive – especially for those working in hazardous environments that are higher-risk
Like many types of insurance, the claims process can be complex and time-consuming
For independent contractors or those who are self-employed, coverage can be limited

While there are potential cons to Employers Liability Insurance, it is a legal requirement to have so it’s important you have it in place.

Pros and cons of personal accident insurance

Personal accident insurance can offer you the peace of mind that should you suffer an injury or accident, you’ll be supported. Here are some potential advantages and disadvantages of personal accident insurance for you to consider:

Pros

Provides financial protection should you suffer an accidental injury, disability or death
Can offer you peace of mind if you work in a high-risk job
If you’re no longer able to work due to injury, personal accident insurance can provide a lump-sum payment or ongoing income to support you and your dependents

Cons

You won’t be covered for chronic conditions, illnesses, viruses or diseases as these aren’t caused by an accident
You won’t be covered for conditions that develop over time and aren’t caused by a single accident, such as gradual hearing loss
Premiums can be expensive, particularly if you work in a high-risk environment or participate in high-risk activities

Which insurance is right for your business?

Which type of insurance is right for your business will depend on the level of risk for you and your employees, and legal requirements too.

As a business owner, you’ll need to ensure you have employers’ liability insurance in place as soon as you become an employer. It’s a legal requirement for most businesses in the UK who have employees, to protect you against the cost of compensation claims should an employee have an injury or work-related illness. Without it, you could face a fine of £2,500 for every day you aren’t insured. Certain businesses are exempt from needing employers’ liability insurance, such as those with no employees or family businesses who only employ family members.

As for personal accident insurance, it’s down to your employee if they choose to take out a policy. It’s designed to give your employees peace of mind – so should they suffer an accidental injury, disability or death – they’ll be financially protected. This also means if they were to die due to an accident, their family will be given a payout if they make a claim.

So, which type of insurance is right for your business depends on the nature of your business. Employers’ liability insurance is a legal requirement for most UK businesses. Whereas, personal accident insurance is there to protect your employees should the unexpected happen – particularly if they work in high-risk conditions.

Speak to a professional

As a business owner, having the right insurance can give you reassurance that should something go wrong, you and your employees will be taken care of. Get a quote for small business insurance with Protectivity today, for the peace of mind you deserve.

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09:40:41 GMT • 11 November 2024

Who Needs Public Liability Insurance?

By Mandy Czyz

25 July 2022

•

4 mins read

Contributors

Mandy Czyz

Mandy has been with Starpeak Insurance Solutions since 2018, starting in sales in the consumer department and mov...

Who needs Public Liability Insurance? If you run any kind of business, you will need this type of insurance cover – it could save you a small fortune. And as we’ll see, some companies could benefit from the protection of Public Liability Insurance more than others.

About Us

If you are in any business, you run the risk of a customer, suppliers, or even a passing member of the public suffering an injury or having their property damaged and holding you and your business liable.

To provide indemnity, effectively, protection against your potential financial losses in meeting any such claim, Public Liability Insurance is at the heart of a number of our business insurance packages – including our Pet Business Insurance, Event Cancellation Insurance and Personal Trainer Insurance.

Is Public Liability Insurance a legal requirement?

Although it offers sound financial protection against the potential losses to your business from claims of liability, Public Liability Insurance (PLI) is not a legal requirement.

Nevertheless, by arranging this cover – which is almost certain to have been put in place by other reputable businesses in similar enterprises to your own – you may be demonstrating just how seriously you take your mission and the customers you serve.

When is Public Liability Insurance required?

Public Liability Insurance is designed to protect you and your business against claims for injuries or property damage suffered by any third party.

Give it just a moment or two’s thought, and you may realise that these are risks which could be faced by just about any business, however large or small, in whatever area of activity.

What types of businesses need PLI?

In some businesses, you may face those risks more frequently than others – despite all the reasonable precautions you have taken to avoid them.

If you run a pet business, a customer might claim that they suffered an injury when one of the animals in your care bit or scratched them, for example.

If you are in the business of organising events, there are all manner of occasions. Such as when one of the guests or participants suffers an injury or has their property damaged and holds you responsible.

If you are a personal trainer, one or more of your exercise routines might have left a client with injuries for which they hold you liable.

Do I need Public Liability Insurance for a private party or a wedding?

You might be surprised by the extensive range of situations in which you can be held responsible for another person suffering an injury or having their property damaged – and, if you are held liable, of course, you may be ordered to pay substantial compensation.

Even if you have organised a private party – or a function such as a wedding reception – simply by taking on that role of organiser, you also assume responsibility for taking reasonable care that none of your guests is injured. If they are, they may claim damages from you – and PLI needs to be there to indemnify you against such claims.

What happens if I don’t take out Public Liability Insurance?

If you have not taken out PLI, you may still be held liable if someone is injured or has their property damaged – you may still be ordered to pay the appropriate amount of compensation.

Of course, without any Public Liability Insurance, you must meet the compensation costs from your own pocket and without the indemnity offered by PLI.

Summary

Your liability for injuries sustained by third parties or damage to their property can prove extremely expensive if you are ordered to pay compensation for their losses.

Although public liability risks may be more significant in some enterprises than others, you are likely to need the protection of PLI whatever your line of business – indeed, you may even find it necessary when organising a private function, party, or wedding reception; running a pet business; or being a personal trainer.

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11:40:46 GMT • 14 January 2025

How to Undertake Tenant Background Checks

By Steffi Cavaliere

25 May 2022

•

4 mins read

Contributors

Steffi Cavaliere

Steffi joined the business in July 2017 as Business Support Executive. Steffi completed her degree in Sports and ...

Get rent guarantee insurance from Protectivity

Are your tenants all they seem to be? It’s a critical question. You rely on your tenants to treat your property with the care and respect it deserves and to pay their rent on time. Your relationship with your tenants depends on mutual trust – and to have some reassurance of that, you will need to undertake a tenant background check.

About Us

Effective tenant screening is one of the prerequisites for the comprehensive security and reassurance granted by our Rent Guarantee Insurance.

Our policy typically protects you against tenants who fail to pay their rent, as well as covering the legal costs involved in pursuing those rental arrears or legal proceedings for their eviction. (Policy limits apply).

To provide that level of protection, of course, both you and your insurer rely on adequate tenant background checks having been made at the outset.

How to carry out your tenant screening

The purpose of the vetting process is, broadly, to establish two main characteristics: the financial status of a prospective tenant to establish the likelihood of their paying the rent when it falls due; and, the personal values and reliability of a tenant who will treat your property, neighbours, and those around him or her with respect.

Credit checks

Your buy-to-let business depends upon your tenants paying the rent when it is due. To give you a better understanding of your prospective tenant’s financial position, you will need to obtain (with their permission) a credit check from one of the credit reference agencies, which must be classed as at least satisfactory

There are several main agencies including Equifax and Experian – and their reports will confirm the tenant’s name and current address, as well as any history of insolvency or County Court Judgements (CCJs).

References and background checks

If you want to know how anyone is likely to shape up as a tenant, one of the best ways of finding that out is to ask a former landlord. That is why we require you to get a reference from the previous landlord (where applicable). This will show you whether the individual has been a good tenant – or if there have been issues with the landlord or the neighbours.

We also require policy holders to take up a reference from the prospective tenant’s employer for confirmation that their income will be sufficient for meeting the rent.

Guarantors

If the tenant’s income is not at least 2.5 times the annual rent, or you have any doubts about their financial stability, you would need to ask the tenant to provide a guarantor who would accept responsibility for paying the rent if the tenant were to default.

Guarantors are usually family members or friends of the prospective tenant and typically own their own home.

Country Court Judgements

In order to be covered under our policy, you would need to check that the tenants do not have any County Court Judgements (CCJs) against them in the last three years, and non-outstanding, and no previous bankruptcies.

Right to Rent

As the landlord, you are under a legal obligation to check that any prospective tenant has an immigration status granting them the Right to Rent in England. More information can be found on the Government website.

You should check at least two forms of identification for the tenant(s), including at least one with a photo.

Summary

Except for the Right to Rent, you are not legally required to carry out tenant background checks, but in order to take out our policy you would need to complete all the Tenancy Check requirements that we list.

These are prudent if you want to ensure – as far as possible – that any prospective tenant is going to be responsible; treat your property with care and respect; not create any nuisance for you or the neighbours; and pay the rent in full and on time. At a time where there is growing uncertainty about the rising costs of living, it makes sense to give yourself the assurance that you will have income coming in if for whatever reason the tenant fails to pay their rent.

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Last updated by

11:40:20 GMT • 14 January 2025

Which Property Strategy may be Suitable for You?

By Steffi Cavaliere

24 February 2022

•

3 mins read

Contributors

Steffi Cavaliere

Steffi joined the business in July 2017 as Business Support Executive. Steffi completed her degree in Sports and ...

Get rent guarantee insurance from Protectivity

If you are looking to join the estimated 2.7m landlords in the UK investing in property, it may be useful to consider which buy-to-let strategy is most suitable for you. We hope the following guide will help you in your buy-to-let property venture.

About us

Our Rent Guarantee Insurance policy protects your income stream if your tenants fail to pay their rent, as well as providing you with legal expenses cover to help you pursue those rent arrears*.

What is a buy-to-let strategy?

When you invest in a buy-to-let (BTL) property, you are buying a property specifically to rent out to tenants. They pay you rent, and you should, after expenses, still make a monthly income from that rent. Giving you extra monthly income.

The property will hopefully also increase in value, meaning that you could expect long-term capital gains**.

Defining your BTL strategy can help you decide on the types of property to invest in and the types of tenants you want to attract.

What are the different types of buy-to-let?

There can be many ways to invest in property, including but not limited to:

Residential properties

Having a single let – this is a single property, a house or flat, that you rent to a family, couple, single person or group of friends.

Investing in a ‘House in Multiple Occupation’ (HMO) – HMO’s are typically properties that have several tenants from different households sharing some facilities. A student house is a great example of this.

Portfolio property investment – this is where you own four or more mortgaged properties – for example, a block of flats or several different homes.

Commercial properties

Commercial – this is where you rent out a commercial property (the benefits tend to be longer-term agreements)

Commercial to residential development opportunities – for example, you buy a warehouse and convert it into flats.

Other property investment strategies

There are also other strategies such as Serviced Accommodation (Holiday lets or corporate lets) and “flipping” properties (where you buy a property in need of TLC, renovate it and then sell it for a profit).

Which buy to let investment strategy is appropriate for you?

We’ve outlined several property investment strategies above. Choosing the most suitable option for you is a matter of personal choice and circumstance.

Considerations may include how much money you have to invest, whether you want to be hands-on or use a managing agent, whether you have renovation and building skills (if you are looking to ‘flip’ a property for example), and your attitude to risk.

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11:36:09 GMT • 14 January 2025

What Insurance Do I Need as a Mobile Hairdresser?

By Steffi Cavaliere

17 June 2020

•

3 mins read

Contributors

Steffi Cavaliere

Steffi joined the business in July 2017 as Business Support Executive. Steffi completed her degree in Sports and ...

Get hairdressing insurance from Protectivity

As a Mobile hairdresser, you may wonder if you need to insure your small business. You may think the risks associated with you business are small, but there is quite a lot that could go wrong, and unlike a large business, smaller businesses are not always able to absorb unexpected costs that a claim could cause.

The three main forms of insurance that a mobile hairdresser needs are public liability insurance, equipment cover and personal accident, although there are other types of insurance that should be consider

Public Liability

Public liability insurance is essential for any mobile hairdresser. It covers injury or damage to a third-party or their property, such as causing a burn when using dye on a client’s hair.

In the event of your business being blamed for an incident such as the one above, your Public Liability will provide cover for the legal costs associated with defending you in court plus any damages that are deemed payable.

There are losts of risks which could lead to costly legal cases. With no public liability insurance in place, you will be liable for those costs, putting both you and your mobile hairdressing business at risk. Protectivity ‘s Mobile Hairdressing Insurance provide up to £10 million in Public Liability Insurance as standard.

Equipment Cover

The tools in which you use for your hairdressing business are vital for you to carry out your service. Therefore, damage or loss of your equipment can have a problematic effect, not to mention placing a significant financial hit on your business in having to replace them.

Protectivity can provide up to £12,000 of cover for items of equipment you use to run your business. You can be protected should your scissors, dryers, chairs or other items be damaged, lost or stolen.

Find out more about hairdressing supplies and equipment cover here.

Personal Accident Cover

It’s possible that an injury or an illness could leave you unable to work and, if you’re self-employed, you won’t have access to sick pay to help you pay your bills while you recover.

Personal accident insurance provides cover which could result in you receiving a lump sum payment if you are seriously injured or killed in an accident whilst at work and carrying out the activities for which you are insured.

This provides cover for the following instances:

Accidental death
Temporary total disablement
Permanent loss of the use of one or more limbs
Loss of sight in one or more eyes
Dental expenses
Hospital benefit

What does our Hairdressing Insurance cover?

Our Hairdressing Insurance provides financial protection to self-employed, freelance and mobile hairdressers.

The policy can cover your business for:

Public Liability for Professional Treatment & Products Liability
Third Party Property Damage
Equipment and Stock
Equipment Hire
Employers’ Liability
Personal Accident

About Protectivity

Protectivity is a specialist in niche commercial, leisure and lifestyle insurance. We cover thousands of individuals and small to medium size businesses across the UK, including hairdressers and barbers, offering a range of tailored insurance products to protect our customers against unforeseen events

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