Insurance can help us reduce risk or spread risk. They can influence our behavior by encouraging us to do some things and discouraging us others. We would likely avoid opening a business if we were forced to lose everything if the business premises burned down.
Only in some cases are we legally required to insure against certain types of risk. These include car and business insurance. Sometimes, it may be prudent to skip insurance. However, we need to consider the legal implications and risks involved.
Although some types of insurance are advisable, it is not necessary to have any.
What is the law about driving without insurance?
It is a UK law that all motorists on public roads must be insured. Third-party insurance is required to protect pedestrians and other motorists from the risk posed by your presence on the roads.
Uninsured drivers could face a PS300 fine and six points on the license. These are the fixed-penalty penalties. If you are convicted, the penalty is uncapped and you could be banned. The police could also take and destroy the car in question.
You might consider specialised insurance if you are only going to be driving for a short time. Temporary insurance for cars will cover you.
The Importance Of Employer Liability Insurance
Employer’s liability insurance is mandatory for all employers. This will protect you from any injuries your employees may cause. You’ll be covered if an employee is hurt in the course of their job.
The claim must be made by an authorized body, and the damages must not exceed PS5 million. This does not apply to those who are only employed by family members or individuals based abroad. The Financial Conduct Authority’s database can help you determine if an insurer has been approved.
You could face a fine of up to PS2,500 per day if you are not covered in this manner. You could also be fined PS1,000 per day if you don’t have your certificate available when inspectors request it.
Civil Law Claims
Civil law is based on cases between people or between individuals and organizations. Violations of another person’s rights or property, as well as crimes against them, are breaches of civil law.
In civil law, the claimant is the party who makes the claim. The person being accused is called the “defendant”. These cases are usually about determining whether the defendant owed the claimant any duty of care.
Employers can also be sued by employees and members of the general public for injuries or illnesses caused by your employer’s actions. You can get advice from your insurer about how to handle such claims and protect yourself against them.