Learn about Limited Company insurance requirements
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In the United Kingdom, there are multiple ways to structure your new business. The type of business structure is important when starting out. Forming your company will dictate how taxes will be paid, how corporate governance is maintained and will provide the foundation of how revenue is generated. In the UK, companies can be set up as a sole trader, corporation, or limited liability company. Each company structure has different insurance requirements. Limited company insurance requirements can vary compared to other business structures.
Limited liability companies are a popular method to form a business in the United Kingdom. The company structure allows for company shareholders and their directors not to have responsibility for debts. The business entity will have the sole responsibility. This protects the owners' personal assets in case the company fails.
Some requirements of a limited liability company include that the business must be registered at the regulatory body of records, which is called Companies House. Yearly accounts and the annual return must be filed at the Companies House. Another requirement of limited companies includes filing of a corporate tax return.
There are three forms of business insurance that limited liability companies can get. Businesses can obtain public liability, employers liability or professional indemnity insurance. If your business obtains public liability insurance, limited company insurance requirements will cover your company against claims that are made against business owners by other people. It is not a legal requirement to obtain limited company insurance.
However, limited liability companies are required to have employers liability insurance. This was due to government regulations that were passed in 1969. If your company has staff, you are required to have this form of insurance.