There are different types of liability cover for businesses, with employers’ liability being the only legal requirement for those who hire any members of staff. However, based on the type of work to do and the area in which you work, you may be required by your employer or even local council to take out public liability cover.
When caught in the middle of a liability claim, the costs can add up quickly, taking into account court fees, investigation and defence costs, along with any possible compensation.
Public liability
If a member of the public or a customer is injured, or their property is damaged as a result of your business, they may be entitled to file a claim for compensation. Even for smaller claims, you could be facing rising costs of thousands of pounds. This type of cover is not a legal requirement but it is recommended for most business owners.
Product liability
If you sell a product of your own design, or on behalf of another company, you could be liable if the product injures a person or damages their property. For example, if a faulty gadget you sell causes a house fire, you may be liable for compensation and that’s not accounting for reputational damage and legal fees.
Employers’ liability
Employers’ liability insurance is a legal requirement if you hire staff. Without this cover in place, you could face large fines of up to £2,500 for each day you operate without the policy in place. This cover will protect your business against the legal costs arising from claims made against it by employees in the event of workplace injury or related illness.
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