Have you chosen the right business insurance? 😅

Plus our favorite entrepreneurial events this month.

May 06, 2024


Hey there,

We're popping back into your inbox this month to give you a couple of legal tips to keep you and your business thriving. 🤓

Today you’ll learn four things:  

  1. 🙋‍♀️ The legal question we’ve been asked most this past month. 

  2. 📰 A noteworthy piece of news (and why it’s relevant to you). 

  3. 🚀 And one legal reminder for you to check off your list. 

  4. 🎉Upcoming events that bring value to your business (new this newsletter!).

Got a question you’d like us to answer next month? Just reply to this email and let us know.

1. May’s Most Asked Question:
What legal rules do I need to know when sending out emails? 📩

While email marketing is a necessary and effective step to growing your business, there are legal restrictions.  

When sending out email marketing, there are a few steps you need to take:

  1. Identify your business (make sure your legal name is clearly shown)

  2. Include a way to contact your business (email is fine)

  3. Give your readers a way to unsubscribe from your email (a lot of email providers have this as an “unsubscribe” feature)

  4. Make sure everyone receiving your email has given consent or permission to receive it. This permission can be given either expressly or inferred. Express permission is when a customer has specifically written or told you that they’re happy to receive marketing emails. Inferred permission is given when it can be shown a customer has (or may have) a continuous relationship with your business. For example: if they pay for your services.

When sending marketing emails to consumers, you also need to check that you’re not engaging in any unfair trading or advertising practices (as set out by law). This means that you should make sure: 

  1. 🚫 Emails don’t mislead consumers about product information 

  2. 📄 Any terms and conditions are reasonable and fair to consumers

  3. 🔁 Refunds, repairs and replacements are available

  4. 💷 Prices are advertised correctly 

2. May’s Noteworthy News:
Apple in Hot Water (again) 🍎

The US Department of Justice and more than a dozen state attorney generals are filing a lawsuit against Apple. The lawsuit alleges that Apple has established an "iPhone monopoly" and engages in anticompetitive behavior that affects various industries beyond smartphones, such as financial services, fitness, gaming and media.  

The suit aims to free smartphone markets from Apple's alleged anticompetitive conduct, reduce fees for developers, lower smartphone prices for consumers and preserve innovation (yay!).  

While Apple has been the target of several lawsuits before (including two other lawsuits from the Justice Department and its current anti-trust battle with Epic Games), this is the first case accusing it of illegally maintaining its dominant position. 

Why should this matter to you? 

As lawsuits and new legal regulations (like the Digital Markets Act in the EU) loosen Apple’s control on the apps its users engage with, competition, innovation and easier market access will continue to open. This will provide a stream of new opportunities for smaller players like startups and founders (we’re looking at you tech entrepreneurs! 🚀).

But keep in mind that while these lawsuits signal a shift towards stricter regulation that could shape the future of the UK tech industry. 

3. Your May Legal Reminder
Have you set up the right business insurance? 😅

Do you have business insurance? (And which ones do might you need?).
Note this is of course not financial advice, but we thought you might like to know what works for other companies.  

Most businesses are only legally required to have one insurance policy as a small business: Employers’ Liability Insurance (EL). 

The government introduced this because they wanted to ensure that if one of your staff members suffers an illness or injury as a result of working for you, any legal or compensation costs would be covered. 

If you don’t have EL, the Health and Safety Executive (HSE) can fine you £2,500 for every day you're unprotected.  

While EL is the only required insurance, there are a few optional insurances that most small businesses will choose to invest in. See if you want to consider any of them for your business: 

Public Liability Insurance (PL)

One thing we all know for sure is that accidents will happen. And if you or one of your team accidentally causes injury or property damage to a member of the public, your business could face hefty legal fees and compensation costs running into the millions.  

This is where PL is so important; it covers your business for claims made against you by members of the public. It’s also why PL is one of the most popular policies for small businesses.  You may need PL if you meet with third parties, for example you have a shop, pub, a restaurant or hairdressing/beauty salon, and suppliers may require it too.

Professional Indemnity Insurance (PI) 

PI is designed for those businesses who offer professional services or advice. If you make a mistake, or if a client suffers (or claims to suffer) a financial loss as a result of your work, it will pick up the bill for any legal and compensation costs.  

And as with PL, some of your clients are likely to insist you have PI. 

Directors’ and Officers’ Liability Insurance (D&O) 

If you're a business founder or director, you should also consider D&O, because there are some cases where a director/officer can be personally liable, for example, breaches of health and safety laws, misadministration of the company pension, or errors in financial reporting. 

In these situations, the penalties can be significant, including fines, disqualification or even a prison sentence. D&O will help you defend your corner, covering legal and compensation costs. This is a key one to have if you’re seeking investment, as investors are likely to ask if you’re covered. 

Please note: there are a few points to watch out for when purchasing D&O, particularly if you’re a startup. Many policies do not cover businesses for insolvency, one of the biggest risks facing early-stage businesses. Make sure you find one that does. 

You should also look for a policy that includes claims made by large shareholders (who have more than 15% of the business). 

Cyber Liability Insurance 

Cyber-crime has fast emerged as one of the biggest risks facing businesses of all sizes, particularly as the data mountain continues to grow. 

In the event that you’re hit, cyber insurance will cover any legal claims, compensation costs, and fines under the GDPR (where legally insurable). In some cases, it can provide a fast response plan including legal, IT, PR and customer service support. 

4. Upcoming Entrepreneurial Events 🤓 

That’s all for now! We’ll see you next month. 

– The SuLe Team 

P.S. If you have questions about whether something in this email applies to you and your business, you can always book a free 15-minute consultation with us.