In the UK, certain liability insurance is actually compulsory among others essential but not demanded by law.  This sounds like a minefield but in fact it’s very straightforward.  And so what exactly do you need to know?  Here are a few tips and hints that will help you select exactly what cover you need for your business, irrespective of it’s size or nature.

1) Employers Liability – This is mandatory in england for anybody who is appointing personnel.  Presently there are very limited instances where this insurance is not needed (if you’re the only owner of an organization as an example).  In the main, almost all firms ought to have cover.  Typically the policy will shelter the firm against claims or allegations for injury, damage to property or disease and look to pay and / or defend a claim.  The indemnity limit will be a minimum of £10M.  It really should be evaluated if you have lots of staff in one specific location.  Whilst it sounds a lot of money, in the case of a claim where a great number of employees affected at one time, £10M will not go very far!

2) Public Liability – It is not obligatory insurance cover, in spite of this no business should run without it.  A business will probably frequently be requested if they hold insurance and likewise, when you employ a company to undertake work on your behalf (from a window cleaner to a developing specialist) invariably you should be sure they’ve satisfactory public liability insurance.  It is suggested that the insurance be absolutely no lower than £2M limit of indemnity, although some organisations now go for £5 Million as a minimum.  The cover shall be effective for the public entering the property (from the postman to clients) to visits you might make to your clients premises.  If someone fell over your case or equipment on-site, they could make a compensation claim for injury against you.  Always be certain your policy extends to cover any work away you may engage in, whether it is manual work or simply just visits and any international work.  It should be appreciated that if you operate any sort of machinery for example fork lift trucks or any other motorised plant, a public liability policy might, in virtually all cases, not respond.  The insurance policy will usually not include insurance for motorised plant.  This really should be appreciated and the plant covered with 3rd party road risks on a stand alone insurance that’s ordinarily really cheap.  It is amazing the number of claims come up from fork lift trucks striking vehicles in car parks or even people. 

3) Products Liability – This is just as before not mandatory however if you are selling a product or producing a product, cover is absolutely essential.  It is typically thought that if you just simply sell goods, you don’t require insurance because the manufacturer will surely have to pay a claim that occurs if somebody is hurt as a result of consuming or using an object.  This is not necessarily the case.  Cover really should be organised by the business selling the goods because in the first instance, any claim will certainly be issued against you.  Your insurance company will then look to subrogate the claim against the supplier.  In the event that however the producer is no longer operating or perhaps their insurance coverage is not sufficient the claim can be straight back again on to you!  Protection is crucial and is ordinarily coupled to the public liability insurance.

Liability insurance should not be a minefield.  Choose to talk with an skilled insurance broker to stress test out your present cover and ensure it holds up to any feasible risks you have.