Information And Advice – Public And Product Liability Insurance

All businesses are exposed to some degree of risk. The sudden loss of a key member of staff, for example, could have disastrous consequences as could damage caused by a fire, long-term failure of equipment or loss of property through burglary.

If your delivery van is put out of use following an accident or your premises get flooded, imagine how disruptive this would be to the day to day running of your business. And what if one of your customers is injured because a product you sold was not wired properly or a member of staff is hurt in a workplace accident?

This is where insurance comes in. All these eventualities can be insured against and the impact they have on the long-term success of your business minimised. They are optional, of course, and businesses have to assess the risks – their likelihood to occur and the damage they could cause – and decide whether insurance is required.

There are, however, 3 types of business insurance which are essential.

1.Employers liability insurance

It doesn’t matter how big or small of a business you have, you are obligated to have this kind of insurance because it will protect your business from a potential legal case that was issued by one of your employees. Your employees will issue a legal case against your business if they get hurt on the workplace that was caused by some malfunction.

This insurance will cover that injury that your employee has suffered, or if your employee gets some type of disease on the workplace. All of this will be covered by the liability insurance and that’s why it is so important for every business to have this type of insurance.

2.Public liability insurance

The second main type of insurance that a business needs is public liability insurance. This is not a legal requirement for all businesses but is mandatory for ones which offer a product or service to consumers. Public liability covers the business against injury, illness, death or disease contracted by anyone, other than an employee, as a result of your business operation.

The cost of public liability insurance varies according to the amount of cover required and this normally ranges between £1m and £10m a year. The level of cover required tends to follow specialist trades and activities and also covers damage to or loss of property as well as legal fees.

3.Product Liability Insurance

This insurance type will cover all damages that are caused by your products in the case when some defective product causes damage. Every business that supplies other businesses with their products should have this insurance coverage.


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