The word liable can strike fear into the heart of any business, and for good reason. Costs can spiral in liability cases, stemming from damaged property, medical treatment, legal fees and compensation.
This fear can be quashed with the appropriate cover, such as Liability Insurance from The Insurance Centre, which can centre on Public Liability, Products Liability and Employers’ Liability as a single or multiple cover policy.
Where legal liability is established, damages will be awarded to the claimant to compensate them for their injury or the damage to their property. Liability insurance is designed to protect your business against these costs. If your business has employees, it is likely that Employers' Liability insurance is compulsory.
If members of the public or customers come to your premises or you go to theirs, including if you work from home, you should think about taking out Public Liability insurance. This will cover any damages awarded to a member of the public because of an injury or damage to their property caused by you or your business.
Employers' Liability insurance enables businesses to meet the costs of damages and legal fees for employees who are injured or made ill at work through the fault of the employer. By law, an employer must have Employers’ Liability insurance and be insured for at least £5 million. Most insurers automatically provide cover of at least £10 million.
Any product, which is a physical item that is sold or given away must be fit for purpose. You're legally responsible for any damage or injury that a product you supply may cause and will be liable for any subsequent compensation claims.
Product liability insurance covers you against damages awarded as a result of damage to property or personal injury caused by your product or unforeseen circumstances, such as product faults your quality control system couldn't trace.