Liability Insurance

What is liability insurance?

Liability insurance is insurance that protects an individual or business from being held responsible for damages caused to another party. 

There are 2 main types of liability insurance: Public Liability & Employers Liability.

These types of insurance can cover the costs of legal fees, settlements, and judgments. Liability insurance can be purchased as part of a business insurance package or as a standalone policy. 

Liability insurance is an important type of insurance for businesses and individuals to have in order to protect themselves from the financial risks of being sued.

What’s the difference between public liability and employers’ liability insurance?

There are two main types of liability insurance: public liability and employers’ liability. Public liability insurance protects individuals and businesses from claims made by the public for damages or injuries that have been caused by the policyholder.

Employers’ liability insurance, on the other hand, protects businesses from claims made by employees for injuries or illnesses that have been caused by their work and will help you pay any compensation required.

Employers are required by law to have this type of insurance in place.

Do I need employer’s liability insurance?

If you have employees, you are required by law to have employers liability insurance.

This type of insurance protects you in the event that an employee is injured or becomes ill as a result of their work. It can also provide cover if an employee sues you for compensation.

If you don’t have employers liability insurance you can be fined up to £2,500 per day that you are not properly covered.

You are also required to display your insurance certificate or make it available to inspectors if asked, if you don’t you risk receiving a £1,000 fine.

If you are unsure whether or not you need employers liability insurance, it is always best to speak to an insurance broker. They can advise you on the best type of cover for your business.

You can read more on Employers Liability Insurance here.

Do I need public liability insurance?

Unlike Employers liability, public liability insurance is not required by law, however it can provide peace of mind in case of an accident. There are several factors to consider when deciding if you should have public liability insurance.

The first is the size and scope of your business. 

If you have a lot of customers or clients, or if you offer services that could cause injury or damage, you’re at a higher risk and should strongly consider public liability insurance. 

The second factor is your industry. 

Certain professions, such as construction, come with a higher risk of liability claims. If you work in one of these industries, you may be required to have liability insurance by your professional association or licensing board.

Finally, consider your financial situation. 

If you can’t afford to pay for damages out of pocket, liability insurance will help protect your business in the event of a lawsuit. When making your decision, weigh all these factors carefully to decide if public liability insurance is right for your business.