If you’re looking for insurance to protect your organization from risk, you may feel overwhelmed by the wide range of options available in the market, all promoting the protection of your assets and shielding you from a range of risks.
However, knowing what insurance is mandatory for your organization (versus what is optional or voluntary) is an important first step to take. These are insurance policies that your relevant authorities have legislated a requirement to have.
Businesses will need to make sure they have the mandatory insurances as required by the laws of their jurisdiction. Failure to do so can result in fines, legal action, and potential liability.
Below, we will discuss the difference between mandatory insurance and voluntary insurance, provide examples of each and where you can go to determine if a particular insurance policy is required for your business.