How Can I Protect My Business From A Compensation Claim Made Against It?

It does depend very much on the type of business that you run as to what risks you face in terms of possible compensation claims. The only real protection, apart from trying not to make any mistakes, is to ensure that you are covered against the most likely risks by taking out the appropriate insurance policies.

If you are an employer you must, by law, have employer's liability insurance, unless the company only employs you or a few close company members (and is not a limited company). It is up to you to ensure that you understand what the policy covers, what it does not cover, and that the financial limits of the cover are high enough to cover the claims you could possibly face.

If your work involves working with other companies, then you might consider indemnity insurance, which will cover you if a customer decides that your work or advice has damaged their business. If your work involves working with the public, then public liability insurance will be required. Again, it is important to study the policy carefully and make sure it covers the areas you need to sufficient levels.

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