What is Liability Insurance and Does My Business Need It?

Posted by Lansdowne-Woodward on 18th November 2019 -

Whilst not always a legal requirement, liability insurance is essential if you own a business. This is because liability insurance protects you from the cost of claims made against you by a member of the public or an employee.

Public liability insurance 

Public liability insurance protects you from claims made by a member of the public, including a customer, passer by or even a supplier. Claims can be for anything that has caused personal injury or property damage as a result of your business or a product it has supplied. Public liability insurance can cover the expensive legal expences incurred through the legal process and the cost of compensation if your company is found to be responsible. 

For example, if a customer slipped on the floor of your business premises and hurt their back, they could make a claim against you for personal injury on the basis you did not provide enough warning. Your liability insurance would cover the cost of defending yourself in court and any compensation rewarded, up to the limit of your policy. You would also be covered in scenarios outside of your workplace. For instance, if you were visiting a client and a member of the public claimed you had broken their mobile phone, you would be able to claim the cost of compensation through your liability insurance.  

Employers’ liability insurance 

Similarly, employers’ liability insurance protects your business from claims made against you from a member of staff who has suffered injury or illness as a result of their work. Unlike public liability insurance, employers’ liability insurance is usually a legal requirement and failure to have adequate cover in place can result in significant fines. 

The responsibility of the health and safety of employees falls to you, the owner of the business. Whilst you will of course take every measure you can to prevent accidents and protect your staff, you cannot eliminate all risks completely. However, you can protect yourself from the cost of potential legal proceedings and compensation claims made against your business by having the appropriate level of liability insurance in place.

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Lansdowne Woodward is an independent insurance broker with over 16 years of experience arranging the best level of liability insurance cover for businesses across the South, including Dorset, Hampshire and London.

To learn more or to arrange a quotation for liability insurance, contact our team of business insurance brokers today on 01202 874989.