GREAT SERVICES to LIABILITY INSURANCE
The main types of Business Liability Insurance are:
Public Liability Insurance
Public Liability Cover is designed to offer protection to individuals, businesses and non-commercial organisations against claims for injury or damage, for which they are found legally liable.
Employers Liability Insurance
Employers Liability Insurance is a legal requitement if you are a business that has employees in the UK, whether they are full time, part time or temporary workers. Either way, you must have employers’ liability insurance cover.
Product Liability Insurance
Product Liability cover is recommended if your business designs, manufactures, or distributes products for sale or free of charge. You can be held liable for a faulty product that you supply, even if you don’t manufacture it.
Public Liability Insurance
Public Liability Cover is designed to offer protection to individuals, businesses and non-commercial organisations against claims for injury or damage, for which they are found legally liable.
The policy will cover claims from any members of the public, clients or customers (‘third parties’) suffering from an accident/incident, while on business premises or elsewhere, in the event you or your business is found to be liable. If your business has made an error or omission which leads to an incident it is likely that this could result in a public liability claim.
Public Liability insurance is not mandatory, however depending on your individual circumstances, your type of business and the sector in which you operate, public liability insurance may be a requirement.
As a sole trader or SME, having public liability insurance and proactively promoting that fact can help you win new customers as they have peace of mind about your insurance coverage.
Employers Liability Insurance
Employers Liability Insurance is a legal requitement if you are a business that has employees in the UK, whether they are full time, part time or temporary workers. Either way, you must have employers’ liability insurance cover.
Employers’ liability insurance can protect you and your business. Employers’ liability insurance covers you if one of your employees is injured or becomes ill due to the work they do for you and decides to make a claim against you. The Employers’ Liability (Compulsory Insurance) Act 1969 makes it compulsory for anyone who has one or more employees to have employers’ liability insurance. The standard cover usually starts at £10m, and you can be fined up to £2,500 per day by the Government if you don’t have it.
Most companies combine public liability and employers’ liability onto one Liability policy but it can be one solus or two separate policies, depending on your circumstances.
Product Liability Insurance
Product Liability cover is recommended if your business designs, manufactures, or distributes products for sale or free of charge. You can be held liable for a faulty product that you supply, even if you don’t manufacture it.
You can also be held responsible if:
- Your business’s name is on a product.
- Your company repairs, refurbishes or changes a product.
- Food is a product, so this would include food poisoning claims
- The product you sell is imported.
- You’re unable to identify the manufacturer of the product you sell, or they have gone out of business, so you are liable.
It’s also worth noting that things can go wrong, even with the safest of products. Personal injury claims can be very expensive, so it’s better to be safe, and make sure you’re covered, than be sorry, and worry about having the finances to pay out for compensation or legal fees. If something does go wrong with one of your products, with this insurance you can feel confident knowing that you’re protected.
Of course, if its your product and its faulty manufacturing that affects hundreds (or even thousands) of customers (unbeknown to you when the product leaves the factory), then product liability insurance would guard against multi-million-pound claims (including legal expenses) and probably save your company from bankruptcy.
To find out more about our full range of liability products, including others types such as professional indemnity and management liability, please call 01270 449 449 or email [email protected]