The last thing any business wants is to be hit with costs that could be so crippling they may even cause it to fold.
One of the ways to guard against this is to take out liability insurance, which exists in several different forms.
Employers’ liability insurance is a legal requirement for firms in case they are responsible for employees becoming ill or getting hurt. At the very least, businesses need to be covered for £5 million by law.
There is also product liability insurance, which covers physical goods that a company sells. It covers a firm in the event of claimants who are injured by the product or suffer damage to property.
The manufacturer rather than the supplier may be liable in certain circumstances. However, the provider should be prepared in case it is sued for potentially high claims.
It is liable under certain conditions, such as if the manufacturer has gone bust or the supplying company’s name appears on the product. Owners of property should look to cover themselves in case somebody suffers injury while they are on the premises. Those who have private property may find that standard home insurance covers this, but it is worth looking into the existing policy to find out.
If you own a company and it is sued by someone for causing injury to their person or damage to their property, the legal fees and associated costs could be extremely high – not to mention any damages you could have to pay.
Some businesses, such as horse riding establishments, are legally required to take out public liability insurance for this kind of occurrence.
It is, however, still sound business sense to be covered for such an eventuality, even if you are not under legal obligation to do so.
People who work from home should also consider public liability insurance, especially if customers or members of the public come over for business purposes. It provides protection in the event of injury or damage caused to others when going somewhere else on business too. Liability insurance of the right kind can give peace of mind to people in both their personal and business circumstances.
By James Clapton