Liability Insurance
Protect your business against the cost of claims made by a third party as a result of damage, injury or loss.
You may have heard of Public Liability Insurance, Employers Liability Insurance, even Professional Indemnity Insurance and the importance of them before, but questions on many business owners’ minds might be:
• What is Liability Insurance?
• Why is Liability Insurance even important?
• What type of liability insurance will provide your business with the cover it needs?
Get the answers you need about how Liability cover can protect your business.
What is Liability Insurance?
Liability Insurance, also known as third party insurance, protects you from claims made against you as a result of injury or damage to property. If your business is found legally liable for such claims, Liability Insurance will pay out compensation and cover the legal costs which will protect you against financial loss. Let’s be honest, not everyone has the money on hand if something goes wrong, which is why its essential insurance needs to be in place.
For example, let’s say you’re a local pub owner who has had a very busy night and you’re about to close. All of your customers leave after their last orders, but someone dropped their wallet on the floor. The customer comes back after they realise, but you’ve already mopped the floor as it’s after closing time. They unfortunately slip and break their arm, then they proceed to start a bodily injury claim against your business.
There is a certain insurance cover for this that your business can have in place to protect you financially: Public Liability Insurance.
Of course, there are different types of Liability Insurance and not just Public Liability, but the cover you’ll need depends on your trade, industry, circumstances, location, future plans, etc. The insurance specialist looking after your business will go through these with you to ensure you receive the exact cover required.
The main types of Liability Insurance worth considering are:
• Employers Liability Insurance
• Directors’ and Officers’ Liability Insurance
• Professional Indemnity Insurance
Product Liability Insurance
Product Liability pays compensation to someone who has suffered any injury or loss from a product you have supplied, manufactured, by your business. This is ideal for many businesses, however, more specifically, shop owners, online business owners, food and drink businesses, importers and generally anyone that sells or produces a product.
Public Liability Insurance
It protects your business from negligence claims where you have allegedly caused damage, loss, or an injury, to a member of the public (a third party). This type of Liability Insurance is ideal for all businesses. For more in depth information about Public Liability, click here: https://realinsurance.co.uk/public-liability-2/
Employers Liability Insurance
Now, this one is important. If you have employees of any kind, even part time staff, you must have Employers’ Liability Insurance in place. Why? One, it is required by law. Two, if any of your employees are injured or become sick in the course of their work your business can be exposed to significant legal exposures. Employers Liability Insurance will cover the legal costs and compensation that may become payable.
Directors’ and Officers’ Liability Insurance
Also referred to as Management Liability, Directors and Officers can have allegations made against them for wrongful acts this type of Liability Insurance will provide the legal defence as well as compensation costs.
Professional Indemnity Insurance
Professional Indemnity Insurance will cover legal and compensation costs for clients that have suffered loss or damage due to negligent advice or services provided by your business. This type of insurance applies to consultancies, architects, accountants, solicitors, contractors, cosmetic businesses to name a few.
Out of those listed, the only one that is mandatory is Employers’ Liability, you must have this by law. The rest are optional but do you really want to take the gamble and go without? Our team strongly advise not to.
Where can you get Liability Insurance?
Hmm, the world’s biggest mystery…
Just kidding, we are specialists in Liability Insurance and any Business Insurance you may require. Our team at Real Insurance Group will listen to all of your circumstances, no matter how bizarre. Whether it’s advice you’re looking for, a quote for Liability Insurance, or just someone experienced to talk to about your business needs, we can help.
Contact us on 0330 058 0260 for a bespoke quotation from a member of our friendly team. Alternatively, fill in the contact form and we will get in touch with you.
Or, if your insurance questions haven’t already been answered, we have plenty of material that probably will.
