Public liability insurance is a great tool for businesses as it covers the legal liability to pay compensation to members of the public if a company causes damage to other people’s property, or injures any member of the public in the process of work. Developed for tradesman and contractors, this commercial insurance is complex, often confusing and sometimes discarded as an unnecessary overhead. However, having the correct liability cover from http://www.staveleyhead.co.uk in place can be the difference between the success and failure of a business.
This form of coverage has several parts to it. One is products liability insurance, providing a similar cover to public liability insurance but paying compensation in the event that any product manufactured, assembled or distributed causes damage or injury. Meanwhile, employers’ liability insurance pays compensation to employees in the event they suffer injury when carrying out duties.
While it is not compulsory to have public or products liability coverage in place, a visit to the HSE website (http://www.hse.gov.uk/press/index.htm) proves that there are many accidents and issues that will often be questioned by the government and subject to fines – never mind private court battles. On top of this, many contracts require a public liability policy with a minimum level of cover. Nonetheless, employers’ liability insurance, is a legal requirement when engaging with permanent or temporary employees.
The minimum level of cover is usually £1 million for public and products liability, and this is an adequate amount for most tradesmen. Nonetheless, when contracting to larger companies or local government, an indemnity limit of £5 million may be more suitable. Meanwhile, employers’ liability insurance must provide a minimum indemnity of £5 million. Luckily, almost all insurers provide a standard limit of £10 million.
Be sure to include this policy. While you may not do anything wrong, the culture of blame in modern business is still a big issue, so be sure to protect yourself and your business with public liability insurance.
