Liability Insurance Explained

Employers Liability

This is required by law and it covers personal injuries sustained in the course of their employment by your employees. It will also cover an employee (current or former) if they become ill as a result of their work. Failure to take out an employer’s liability policy can result in fines of up to £2500 for any day you are without suitable cover.

Public Liability

This covers injury to a member of the public or damage to their property caused by you or your business. Premiums depend on the type of business you run, your turnover and the number of employees you have.

Products Liability

If you sell (or give away) a product you are legally responsible for any damage or injury that the product you supply may cause. Products Liability will cover you against any compensation awarded as a result of damage or injury caused by your product. Cover is also available to protect you against costs incurred in having to recall a product. With some recent high profile product recalls (SAAB recently announced it was recalling 33,100 cars in the UK and 297,000 units Worldwide due to a ignition problem) now, more than more, is it crucial to ensure you have the correct level of cover.

Directors & Officers Insurance

Directors & Officers Insurance (or D & O) is a policy that protects officers and directors of a corporation from liability in the event of a claim or lawsuit against them claiming wrongdoing in connection with the company's business. Premiums for this type of cover have risen dramatically in recent times so the use of a good insurance broker is highly recommended to ensure you get the best deal.

This article has been produced by Northern Counties Insurance Brokers. As one of the UK's Leading Insurance Brokers Northern Counties have been providing Business Insurance and Liability Insurance to companies since 1928.