Protecting responsibilities with Liability Insurance
A culture of ‘making claims’ against people in an attempt to bring about compensation has, in recent years increased the need to have adequate liability insurance to protect you, your business and your assets.
Liability insurance covers business owners, independent professionals and self-employed people against the cost of compensation claims following fault of negligence brought against them by employees, clients, customers, shareholders, investors, or members of the public.
Liability insurance usually covers the cost of compensation to a third party for:
- Personal injury
- Loss of, or damage to, property
- Legal obligations
- If you are an employer you are legally obliged to have employers’ liability insurance. Other types of liability insurance are optional.
With a vast array of differing policies to choose from, it is easy to go online and pay a Liability Insurance without knowing what you are paying for.
We will talk you through the options and explain how each liability product can protect you against risks, and the associated costs. Typically, your premium is based on a number of factors, all of which we will go through with you. However, below is a summary of what these are:
- The type of liability insurance you are buying
- The claims history of other companies of a similar size and nature
- Factors specific to your business including: The number of people you employ (for employers’ liability insurance)
- Your annual turnover (for public liability and product liability insurance)
We will:
- We work with you to fully understand your business and the risks you face
- We then work with our partner insurers to design a liability policy that covers you and your business
- We will present to you the options available and recommend the best policy for you (including the cover, policy limits and exclusions, and price)
The main types of liability insurance are:
Employers’ Liability
Required by law if you have employees – covers the cost of compensating employees who are injured at or become ill through work.
Public Liability
Covers the cost of claims made by members of the public for incidents that occur in connection with your business activities.
Product Liability
Covers the cost of compensating anyone who is injured by a faulty product that your business designs, manufactures or supplies.
Professional Indemnity
covers the cost of compensating clients for loss or damage resulting from services or advice provided by a business or individual.
Directors’ and Officers’ Liability
Covers the cost of compensation claims made against your business’s directors and officers for alleged wrongful acts.
Legal expenses
Liability insurance will cover some of the legal fees arising from compensation claims, but not all of your legal expenses will be covered by your policy. You can buy legal expenses insurance on top of your liability insurance to cover you against the cost of pursuing legal action or defending your business against claims.
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