According to UK law, employers are responsible for the health and safety of their employees during working hours. In the case of accidents at work, or prolonged illness of company’ associates due to stress or depression, the employer could be held accountable for this and might have to deal with claims and compensation (for damages caused to the workers’ health). The Employers' Liability Act 1969 requires companies to subscribe the Employers’ Liability insurance that would cover a particular threshold for workers’ health problems due to the workplace conditions.
The Employers' Liability Insurance will allow employers to cover the cost of their employees' compensation for illness, or injury caused either inside or outside of the workplace. However, if a car accident occurs during working hours (while the employee is driving any vehicle), the vehicle’ insurance company will cover the employee.
The situation is different if we consider the Public Liability Insurance. This policy covers the company from claims for damages to third parties (other companies, government agencies, customers, suppliers). While the Public Liability Insurance is optional, the Employers' Liability Insurance is mandatory, thus required by law. In fact, if not signed you may incur severe penalties that could disrupt and in some cases cease the business operations.
An additional policy to take into account is the Professional Indemnity Insurance, so named because it covers the company from professional liability. Specifically, this policy covers various legal costs incurred in defense of customers’ claims concerning damages or costs for consulting services or selling products that are in line with law requirements. In the absence of this type of insurance, the company could incur to massive financial losses that could lead to an irreversible process of bankruptcy. For many businesses, it is essential to subscribe this insurance because part of the directives (non-mandatory) suggested by the industry and sector in which the company operates.