What is the minimum insurance cover required by law for Mr. Smith, who operates a transport company with two drivers?

The minimum insurance cover required by law for Mr. Smith's transport company is indeed third party only motor insurance and employer's liability.

In the context of operating a transport business, there are specific legal requirements for insuring vehicles and providing coverage for employees. Third party only motor insurance is mandated by law for all motor vehicle operators in the UK, which covers the claims made by other parties for injury or damage caused by the insured vehicle. This type of insurance is essential for someone who operates a transport company as it protects against claims from other road users.

Additionally, employer's liability insurance is also a legal requirement for businesses that employ staff. This insurance protects employers against claims from employees who may suffer injury or illness as a result of their work. Given that Mr. Smith operates a transport company with two drivers, he is legally obligated to ensure that he has this coverage in place.

Options that include fully comprehensive motor insurance go beyond the minimum legal requirements, as they offer a broader range of coverage, including damage to the insured's vehicle, but are not essential for compliance with the law. Similarly, coverage for goods in transit is also not a legal requirement for operating a transport business; instead, it is an additional protection that may be beneficial but is not mandated