Not insured - what's your obligation

In researching this subject I discovered that my knowledge in this area was out of date.  Companies (according to the DirectGov website) do not have a legal obligation to take out public liability cover.  However companies that operate in certain businesses do - such as horse riding schools.  I had always thought that all companies had a legal obligation - I appear to be wrong....ooops. 

Although, I seem to believe, my out of date undertsanding is perhaps more relevant than the current law.

So if you discover that your new client who is dealing with the public does not have public liability cover...and has no intention of making arrangements for this cover - what are our obligations, as accountants?

1. Do we simply let the client know that there is an obligation (albeit not a legal one) and leave it at that.
2. Do we highlight it in a letter - perhaps the year end management letter.
3. Do we threaten to resign.
4. Do we do nothing....not our responsibility.

I do not know the answer.  However for us we do ask clients in the initial consultation.  We do refer clients to a suitable broker and we do refer to it in the management letter.  I would be interested to know what other accountants do?

We also see alot of clients via our www.wisteriabusinessplans.co.uk as well as www.wisteriaformations.co.uk and in all cases we ask the questions about PL cover.