If you run a business that deals directly with the public, then you’ll need to have public liability insurance. It’s not a legal requirement for many businesses in the UK, but it’s a good idea to have it.
Without it, the unexpected cost of compensation claims could bankrupt your business. This can easily amount to tens of thousands of pounds, and it’s not something you want to have to deal with.
Product liability
Product liability is the cost of compensation claims made by people who have been injured or their property damaged by a defective product. It is usually included in the price of public liability insurance policies - but you can buy it separately. The costs of a compensation claim can be very high, and could include medical and loss of income expenses.
The amount of cover you need depends on the type of business you run and the products you sell. For example, a restaurant that serves food might need more cover than a shop selling technical equipment. It also depends on the size of your company. If you’re producing millions of units, your rates will be higher than a small retailer.
You can minimise your risk of being sued for product liability by designing the product carefully and ensuring that it is safe to use. You should also make sure that the product comes with warnings and instructions, so customers know how to use it safely.
In the UK, businesses are required to follow consumer legislation when designing, supplying and selling goods. This is in place to protect customers from being harmed or their property damaged by defective products.
There are a number of ways that businesses can be held liable for faulty products, such as manufacturing defects and labeling defect. Both can lead to serious injuries and other damage.
Many product liability cases are based on negligence, but they can also be brought under breach of contract and the Consumer Protection Act 1987 (CPA), which transposed the EU Product Liability Directive 85/374/EEC into UK law.
However, it’s important to note that a manufacturer cannot be liable for any damages caused by a faulty product unless it can prove that the defect was the cause of injury or damage to the customer. This means that if a product was bought in the UK, but manufactured in a country outside the EU, the manufacturer would not be liable for any damage that it caused.
If your business manufactures, supplies or sells physical products that are sold or given away for free, you should consider taking out product liability insurance. It’s possible to take out a policy that will cover you for compensation claims of up to PS5 million.
Employers’ liability
Employers’ liability costs in the UK can vary significantly, depending on a range of factors. This includes the number of employees you have and how they are based, as well as your location.
In the UK, employers’ liability cover is a legal requirement for most businesses. Whether you hire full-time or part-time employees, temporary staff, contractors, apprentices, volunteers or people taking part in work experience or training schemes, you must have this cover.
The level of your employers’ liability insurance cover depends on a range of factors, including your business type and its history of claims. In addition to the cost of your cover, you may also need to pay for legal fees and compensation if a claim is made against you.
Many insurers offer a variety of cover options, with prices usually ranging from PS5 million to PS10 million, depending on your requirements. This is often enough to cover the compensation payments of a small company, but it’s important to consider how much you need and your budget before deciding on an appropriate level.
Despite the hefty premiums associated with employers’ liability insurance, it can be an essential part of protecting your business from high claims costs and potential reputational damage. Claims can range from minor to very serious, and even if they’re not severe, they can still have an impact on your business’s future.
Some insurance companies offer a single policy with a wide range of optional extras, or you can buy separate cover as part of a larger package. You can also get a quote from a specialist broker, who will help you find the best deal for your needs.
In most cases, you’ll need to have at least PS5 million in suitable employers’ liability insurance as soon as you start hiring new members of staff. This is a relatively low level of protection, but if you do need to make a claim it can quickly become a huge financial burden.
Historically, employers’ liability cover was provided on an unlimited basis; however this has been withdrawn in the UK since 1995. The withdrawal of unlimited cover was a reaction to the poor claims experience that the market was experiencing at the time, coupled with concern over the potential for large exposures.
Public liability
Public liability costs UK are a critical part of any business insurance policy. They cover compensation costs, repair and medical expenses if people are injured by your work, or their property is damaged.
The cost of your public liability insurance will depend on a number of factors, including the type and size of your business. You may also be able to save money by choosing a lower cover limit, or opting for an excess instead of an all-in policy.
How much public liability cover you need is an individual decision, but a good rule of thumb is that it should be enough to cover worst-case scenarios for injury or damage to a third party’s property or health. Checking in with any contracts, trade body rules and assessing industry standards can help you to estimate your requirements.
Some businesses have a higher risk of causing injury to people than others. This is particularly true of construction and tradesmen, who often come into contact with a lot of clients.
This is why it is important to ensure that your public liability policy is adequate to protect you against claims from a wide range of people. It can also be useful to consider if your customers require a specific level of protection for your work or services.
Another way to reduce the cost of your public liability insurance is to avoid making a claim in the first place. This can be a significant advantage, as the legal costs of a successful claim can add up to a large sum and cause financial problems for your business.
You can find out how much public liability insurance you need by speaking with an insurance broker who specialises in this area. They can help you assess your cover needs and connect you with a variety of insurers who offer a range of options for your business. They can also advise you on the level of excess to choose, and help you make the right choice for your business.
Legal expenses
A legal expenses insurance policy will provide your business with cover against the cost of any claim or dispute you might have. This can include claims made by clients or members of the public, or by other businesses you might be in contract with.
A lot of businesses find themselves in the middle of a legal dispute at some point. This can be because of a mistake in a contract, or because your employees have been injured or their property damaged. Whatever the reason, this can cause you a lot of expense.
In a litigious society, it’s important to protect your business against the costs of any claim. This can be through public liability policies, or professional indemnity insurance. However, both of these may not respond to every case that comes your way.
Buying legal expenses insurance is a relatively straightforward process and, when combined with a good home or car insurance policy, can save you thousands of pounds in the long run. It’s worth shopping around to get the best value for money.
Many legal firms charge very high rates for their services, a practice that has been highlighted by the CPS as having a negative impact on access to justice. In particular, solicitors from the high street tend to charge more than those who work at City law firms.
This can mean that, if you need legal advice, it can be impossible to afford. This is particularly true if you have a small business, or have a family to support.
The costs of a legal claim can be tens of thousands of pounds, so you need to be certain that you can afford them. Getting a quote is an easy way to find out how much you could expect to pay.
Some insurers offer legal expenses insurance as an optional extra, while others add it to their main policies. You can also buy a standalone legal expenses insurance policy if you don’t already have one.
Having legal protection can be a good idea for any business, whether you’re a sole trader or have a large operation. It’s important to check the terms of your policy and make sure you understand what it covers, as well as any exclusions.