Liability Insurance

What liability insurance provides you and your business with.

Liability insurance cover is needed for a buainess to indemnify, this means that it will cover and  pay “all sums” for if you are ever held liable up to your chosen limit this is to insure you can settle any reasonable claims.

Firstly

In the UK, you must get Employers Liability (EL) insurance as soon as you become an employer – your Employers Liability Insurance policy must cover you for at least £5 million and come from an authorised insurer like www.insurancequote365.co.uk .

EL insurance will help you if you need to pay compensation when an employee is injured or becomes ill because of the work they do for you.

You may not need EL insurance if you only employ a family member or someone who is based abroad so you need to find out if you need EL Cover.

You can be fined £2,500 every day you are not properly insured.

You can also be fined £1,000 if you do not display your EL certificate or refuse to make it available to inspectors when they ask.

http://www.fsa.gov.uk/register/home.do

http://www.fca.org.uk/site-info/contact

Business Liability Insurance.Types of liability insurance

liability insurance is a compulsory form of insurance in the UK for businesses that are in danger of being sued by third parties for negligence. The normal classes of mandatory liability Insurane cover is for the businesses who offer professional services to the public, those who manufacture products that could be harmful, construction firms and companies that offer employment. The reason for these laws is that the classes of insured are deliberately engaging in activities that put others at risk of injury or loss. Public policy  requires that these individuals should have liability insurance so that, if their business causes loss or damage to another, money will be available to pay out compensation. In addition, there are many ranges of risks that people insure against and, consequently, the number and range of liability policies has increased in line with the rise of contingency fee litigation offered. Such policies fall into three main classes:

Types of Liability Insurance

Liability insurance is a compulsory form of insurance in the UK for businesses that are in danger of being sued by third parties for negligence. The normal classes of mandatory liability Insurance cover is for the businesses who offer professional services to the public, those who manufacture products that could be harmful, construction firms and companies that offer employment.

The reason for these laws is that the classes of insured are deliberately engaging in activities that put others at risk of injury or loss.

Public policy  requires that these individuals should have liability insurance so that, if their business causes loss or damage to another, money will be available to pay out compensation. In addition, there are many ranges of risks that people insure against and, consequently, the number and range of liability policies has increased in line with the rise of contingency fee litigation offered. Such policies fall into three classes:

 

Public liability

The Commercial Industry in the UK is based on a range of processes and activities that can affect third parties including members of the public, visitors to your business even trespassers can have a claim. Sub-contractors also need to be taken into consideration.

The issues can vary as to whether either or both employer’s liability insurance and public liability insurance is needed but in the UK they are compulsory . Regardless of compulsion, however, most businesses include public liability insurance in their insurance cover even if the conditions, exclusions, and warranties included within the standard policies can be a comprehensive.

Many small UK businesses do not secure general or professional liability insurance due to the high cost of premiums. However, in the event of a claim,  costs for a solicitor or even an out of court settlement can far exceed liability insurance costs. In many cases, the costs of a claim can shut down a small business.

In the United Kingdom Employers Liability Insurance is compulsory, unless the only employee is the owner of the company (who holds at least 50% of the shares) or the business is a family business which is not incorporated as a limited company.

Businesses in the UK must consider all of the potential risks when choosing liability insurance, in this case a broker is often used as they have the expertise however if you are aware of the liability cover you need using an online liability quoting website can be cost-effective. Those with the greatest public liability risk exposure are occupiers of premises where large numbers of third parties visit including shopping centres, pubs, clubs, theatres, sporting venues, markets, hotels and resorts. The risk increases dramatically when alcohol is present and sporting events are included. In some cases underwriters even refuse to insure the liability of these industries or choose to apply a large excess to the policy.

Employers

Many new policies have been developed to cover any liability that might arise on a business if an employee is injured in the course of his or her time at the company. The HSE require the insured either to take reasonable precautions or to comply with current Health and Safety regulations.

Third-party liability

Third-party liability insurance is a policy purchased to protect against the actions of another party. It is created by the insured by an insurance company. This is to protect against damage from the actions of a third party. So as an example,  if your bike is hit by someone without insurance, you can purchase coverage, third-party insurance, on their behalf. This is not to be confused with an accident you caused, which would be covered by first-party, or standard, liability insurance.