Compliance Centre

Insurance and risk

Insurance does not remove a legal obligation. It decides whether the business survives one that crystallises.

EducationalCompliance topicLast reviewed 2026-08-14No named reviewer yet

What it covers

The scope of this area, in general terms.

Cover matched to what the business actually does, including its people, premises and liabilities.
Employee-related cover, including the scheme established by the Employee's Compensation Act 2010 where it applies.
Contractual insurance requirements, which frequently oblige a business to hold specific cover.
Business continuity: what happens if a key system, site or person is unavailable.

When it becomes relevant

Circumstances in which this area usually matters. This is not a test of whether an obligation applies to you — that depends on your specific situation and should be confirmed with the relevant authority.

You employ anyone, or bring the public onto premises.
Your contracts require you to carry specified cover.
You hold stock, equipment, data or client property.
A single failure could stop the business trading.

Good practice

Practices businesses commonly put in place. Educational, not prescriptive.

Match the cover to the actual operation, not to a generic policy description.
Read the exclusions before relying on a policy.
Check contractual insurance obligations when you sign, not when you claim.
Review cover whenever the business changes what it does.
Keep a short continuity plan for the failures that would hurt most.

Common gaps

How this area usually goes wrong — rarely through bad faith, and almost always through nobody owning it.

Cover bought once and never revisited as the business changed.
Policies that exclude the activity the business mainly performs.
Contractual insurance requirements accepted and never met.
No continuity plan for the loss of a key system or person.

When to involve a lawyer

When to speak to a lawyer

A claim has been declined, or cover is disputed.
A contract requires cover you are unsure you hold.
An incident has occurred that may give rise to liability.
You are assessing risk for an investment or a sale.

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What it covers

The scope of this area, in general terms.

Cover matched to what the business actually does, including its people, premises and liabilities.
Employee-related cover, including the scheme established by the Employee's Compensation Act 2010 where it applies.
Contractual insurance requirements, which frequently oblige a business to hold specific cover.
Business continuity: what happens if a key system, site or person is unavailable.

When it becomes relevant

You employ anyone, or bring the public onto premises.
Your contracts require you to carry specified cover.
You hold stock, equipment, data or client property.
A single failure could stop the business trading.

Good practice

Practices businesses commonly put in place. Educational, not prescriptive.

Match the cover to the actual operation, not to a generic policy description.
Read the exclusions before relying on a policy.
Check contractual insurance obligations when you sign, not when you claim.
Review cover whenever the business changes what it does.
Keep a short continuity plan for the failures that would hurt most.

Common gaps

How this area usually goes wrong — rarely through bad faith, and almost always through nobody owning it.

Cover bought once and never revisited as the business changed.
Policies that exclude the activity the business mainly performs.
Contractual insurance requirements accepted and never met.
No continuity plan for the loss of a key system or person.

What it covers

When it becomes relevant

Good practice

Common gaps

When to involve a lawyer

Related across the platform

What it covers

When it becomes relevant

Good practice

Common gaps

When to involve a lawyer

Related across the platform