Public, Products and Employers Liability Insurance

Most businesses will need to buy cover for Public Liability risks. This covers your legal liability for death or bodily injury to the public and loss of or damage to property not owned by you or in your custody or control. It is crucial cover for anybody who has visitors to their premises or who visit clients premises.

In most cases, if you are a sole trader or you are the sole employee of a limited company, you will only need to buy Public Liability cover. However, if you produce or supply a product then you should also purchase Products Liability cover too – this is normally an extension to a Public Liability cover and, in some cases, may be provided free of charge as an integral part of the policy.

If you are the manufacturer of the product or hold the distribution rights then you will need to be sure that your cover extends to include your liability as product licence holder.

If you employ temporary or permanent staff you’re legally required to have employers’ liability insurance. The maximum fine for not having this cover when you are required to do so is £2,500 per day. This insurance covers you if an employee is injured or develops an illness as a result of their employment with you. You should buy this cover even if your only employees are volunteers – if you are in charge of their systems and methods of work you are legally considered to be an employer as far as the legal requirements, in respect of Employers’ liability, are concerned.

A limited company is required to hold Employers’ liability cover even if the only employees are family members – ie a husband and wife. Non-limited companies employing close family members are not legally required to buy employers liability cover but are advised to purchase it.

You can buy Liability cover as an extension to your professional indemnity insurance policy, as a stand-alone policy, or as part of a combined business policy. Please call PI Expert for a quotation.