Liability Insurance

Public Liability Insurance

The most typical type of liability insurance that all businesses could benefit from, public liability insurance covers businesses against claims made by customers or members of the public. It protects against claims involving both injury and property damage as a result of your business activities, as well as any related costs or legal fees.

Some key examples of where this insurance would be necessary are:

• A customer slipping and falling on a wet floor and injuring themselves
• A builder puncturing a water pipe in a building they are working on, causing flooding which results in substantial damage to the property
• Spilling hot coffee over a client while having a consultation
• A caterer causing guests to contract food poisoning at a wedding reception where they are catering
• A painter accidentally knocking paint over a customer’s expensive carpet

Products Liability Insurance

While not as typical as public liability insurance, products liability insurance is useful to anyone that sells, supplies or installs products as part of their business. It protects against claims made due to the injury of a customer, member of the public or damage to property. It is important to remember with this type of insurance that even if you didn’t manufacture the product, the person affected may still hold you legally responsible for any faults and defects, and cause them to make a claim against you initially.

Some key examples of where this insurance would be necessary are:

• An electrician fits a new plug in a home, but the plug is faulty and electrocutes the customer when they plug something in, causing them great injury
• A plumber installs a faulty valve that causes a leak and floods the property, resulting in substantial water damage
• A roofer is re-roofing a property, but the concrete roof tiles haven’t been cured correctly and they crack. As a result, they slide off the roof and cause injury to a passer-by

Employer’s Liability Insurance

One of the most important liability insurance covers, employer’s liability insurance is a legal requirement for any business that employs staff. It’s designed to protect your business against an employee suffering an injury or illness as a result of working for you and claiming compensation, and it covers a vast amount of accidents in the workplace.

Some examples of where this insurance would cover you are:

• An employee is using a ladder on a job, when the ladder breaks and they fall, sustaining significant injury
• An employee causes a power failure in a building you’re working on, causing another employee to fall down a flight of stairs, leaving them with substantial injuries

Professional Indemnity Insurance

Providing cover against claims of professional negligence, professional indemnity insurance, or professional liability insurance, protects businesses from defending themselves against claims such as these and the damages that might be awarded to the claimant. It covers claims for financial loss due to bad advice, which can be particularly useful if your business provides consultations. This type of liability insurance is starkly different from other forms of liability insurance, because the cover is generally arranged on a ‘claims made’ basis, meaning that the policy will only cover claims made during the policy period.

Some key examples of where this insurance would cover you are:

• An electrical contractor certifies an electrical system as up to standard. The client later discovers that it doesn’t comply with current standards and has to pay to have it re-done
• A contractor won a tender to build a commercial building, and sub-contracted the design work to a firm of architects and structural engineers. Unfortunately, incorrect design led to the foundations being laid out incorrectly, which resulted in increased costs, a delay to the project and the work having to be re-done. The claim was made against the building contractor in the first instance