Liability

When running a business you are exposed to numerous liabilities. Employers', Public and Products Liability insurances are critical covers that can and should be arranged to protect you.

 

Employers Liability Insurance

Employers Liability insurance covers the legal liability of employers for injury, disease or death sustained by their employees arising in the course of their employment.

 

This insurance is legally compulsory for all businesses that have any employees (unless they are exempt under the Employers' Liability Compulsory Insurance Act 1969). By law, cover is required for at least £5 million. In practice, however, most policies provide a limit of £10 million.

 

Your insurer will issue you with an Employers Liability Certificate each year as evidence of insurance. You are legally obliged to display one in each of your business premises. Furthermore, you are legally required to keep the certificate for a minimum of 40 years.

 

Public Liability

Public Liability Insurance covers the legal liability of your business to pay compensation to members of the public for death, injury or damage to their property, which arises in the course of your business. It also covers legal fees, costs and expenses such as representation at any coroner's request, fatal accident enquiry or other court hearing because of an accident. Whilst it is not legally compulsory, it is essential insurance for any business - large or small.

 

When deciding the amount of Public Liability Insurance you need (the limit of indemnity), you should consider the maximum claim that could be made against you. By the very nature, some businesses will require higher limits than others. For example, if you are a plumber or a roofer involved in carrying out heat work at customers' premises and cause a serious fire that spreads to neighbouring premises, the claim for damages could run to millions of pounds.

 

Product Liability

In these times of high consumer awareness, customers will not hesitate to pursue a claim against you if they are injured as a result of what they believe to be faulty or defective goods they bought from you. You can be held legally liable in these circumstances even if you have not been negligent.

 

Products Liability Insurance covers the legal liability of your business for injury or damage arising from defects in the design or manufacture of goods made, repaired or sold by you in the course of your business, up to a maximum amount (limit of indemnity) each year.