The only way to effectively protect the assets of your business is to carry adequate insurance cover. Liability insurance protects your business from damages caused by bodily injury or property damage for which your business is found to be legally liable.
What Does Public/Products Liability Insurance Cover?
A comprehensive public and product liability policy provides cover for claims of bodily injury or other physical injuries, personal injury, advertising injury and property damage as a result of your products, premises, or operations. As a safeguard against liability, the policies allow you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. Liability policies also provide cover for the cost to defend and settle claims. Typical liability policies may cover:
- Personal and Advertising Injury – Protects against offences made by you or your staff during the course of business, such as libel, slander, disparagement or copyright infringement in advertisements.
- Defence Costs – Provides cover for legal expenses for liability claims brought against your business, regardless of who is at fault.
- Medical Expenses – Provides cover for medical expenses if someone is injured on your premises or by your products.
- Premises and Operations Liability – Provides cover for bodily injury and property damage sustained by others on your premises or in conjunction with your business operations.
- Products Liability – Provides cover for bodily injury and property damage sustained by others as a result of your products.
How Much Cover Does Your Business Need?
The cover that your business needs depends on:
- Perceived Risk – Consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery, you would generally need more cover than another organisation that manufactures stuffed animals.
- Business location—Depending on where you operate your business, you may face different risks. For example, manufacturing in an area with an increased likelihood of property damage or theft will likely equate to the need for more cover.
- Type of Product Manufactured – If you manufacture a dangerous product, you may want to carry higher limits of liability.
Typical Exclusions and Limitations
- There will typically be an excess requirement for each claim. The excesses will vary depending on the policy and covers sought.
- Injury to your own employees or to your own property is not covered under Public/Products liability insurance. Make sure you have Employers’ Liability insurance and adequate Property insurance.
- War, terrorism or nuclear risks are typically not covered.
Employers’ Liability
Employers’ liability insurance protects employers from claims of negligence made by employees who suffer injury or ill health due to their work. Unlike most other types of insurance, employers’ liability insurance is compulsory. If you employ workers based in England, Scotland or Wales (including offshore installations or associated structures), your company must carry employers’ liability insurance to avoid fines.
How Much Cover Do You Need?
The laws requires employers to carry at least £5 million of Employers’ Liability cover. However, depending on the size and the nature of your business, the minimum level of cover may not offer your company adequate protection. An experienced insurance professional can help you evaluate your risks and liabilities. They can then determine the right amount of cover for your business.
What Happens if I Do Not Have Employers’ Liability Insurance?
The Health and Safety Executive (HSE) enforces the law on employers’ liability insurance. You can be fined up to £2,500 each day you are without suitable insurance. If you do not display the certificate of insurance or refuse to make it available to HSE inspectors when they ask, you can be fined up to £1,000.
How Can I Reduce My Premium?
It doesn’t make sense to change the nature or scale of your business just to reduce your premium, and you cannot change your company’s past claims history. The one factor you can influence is the quality of your health and safety risk management system. Implementinga robust health and safety risk management system reduce your premiums in the short term. It may also lead to a reduction in future claims, which will mean lower premiums in the future.
If you’re looking for a single liability policy such as Public or if you would like a combined policy which includes all three, please call us on 01925 989641 or complete our quote form and a member of our team will get in touch with you as soon as possible.