Liability Insurance provides cover for self-employed individuals and business owners against the cost of compensation claims and is crucial to anyone who may be held liable for injury to another or damage to another’s property, including employees, customers and members of the public.
In the UK, the only compulsory cover for most businesses that employ staff is Employer’s Liability Insurance. However, it is worth considering other covers also to ensure that you and/or your business are protected financially and legally in the event of a claim against you. For example, if your clients visit your business premises or perhaps your business operates in public, then your business would benefit from Public Liability Insurance.
For some businesses, different types of liability coverage may be required by their clients or regulator.
The different types of Liability Insurance available include Employers’ Liability, Public Liability, Product Liability, Directors’ and Officers’ Liability and Professional Indemnity Insurance.
Employers’ Liability Insurance
For employers, it is a legal requirement to have Employers’ Liability Insurance which covers the cost of compensating employees who are injured at or become ill through work. This also implies to businesses who only employ staff on a temporary or unpaid basis.
Public Liability Insurance
Public Liability Insurance covers the cost of claims made by members of the public for incidents related to the operation of your business, including a visit to your business premises and also if your business operates in public.
Product Liability Insurance
Product Liability Insurance covers the cost of compensating anyone that is injured by a faulty product that is designed, manufactured, or supplied by your business.
Directors’ And Officers’ Liability Insurance
Directors’ and Officers’ Liability Insurance covers the cost of claims made against a director, partner, or officer of a company by an employee, customer, competitor, or other party.
Indemnity Insurance covers negligence claims against a business. This cover is particularly important for businesses that provide advice or a professional service to clients.
Intentional damage, criminal prosecution, and contractual liabilities are some provisions that are generally not covered by Liability Insurance.
For any further information regarding the different types of Liability Insurance available to you and your business, contact us.