Every organisation needs at least one of the three main liability covers, namely Employers Liability, Public Liability or Products Liability. Liability Insurance protects businesses against claims made in respect of incidents for which they may be held legally liable.
If you employ staff however casually, you are required by law to effect Employer’s Liability cover. It covers your business’s legal liability to its employees and volunteers against illness or injury suffered as a result of the business’s activities.
Example: An employee suffers an injury when they trip up over a computer cable in the office. The employee could hold you liable for their injury.
Public Liability Insurance covers your legal liability against specific actions raised by a third party for loss, injury or damage suffered as a result of the business’s activities.
Example: A visitor to your office trips on a torn carpet and injures themself. They could hold you liable for their injury.
If you sell, supply or manufacture any goods, you will need to effect Products Liability cover as you may be held liable for any death, injury or damage to property caused by a defect in them.
The Consumer Protection Act 1987 provides a civil law right of redress for the Consumer (in respect of death or injury), against any of the suppliers in the chain, rather than just against the person from whom the goods were finally obtained. Thus whether you are the supplier, retailer, wholesaler, importer or manufacturer of the goods you have a potential liability.
Example: Your business sells a ladder to a third party but they fall off the ladder because of a faulty rung. The customer could hold you liable for their losses.
It is very important that you provide a complete list of your activities to ensure that you have the correct cover. The need to demonstrate you have carried out the appropriate Risk Assessments and taken necessary corrective action cannot be overstated.
For further information or advice about liability insurance or to get a quote, please contact us