Combined liability insurance
Who it’s for
There are three main types of liability insurance a business, or individual, can purchase. Individually they are employers, public and product liability. When purchased as a package, with all three, it is called combined liability insurance.
Professional indemnity insurance is a form of liability insurance which is usually only purchased by companies providing design, a service or advice.
There are a few insurers that will offer the four together in one policy, but is more competitive in the main to arrange two policies. One for the combined liability and a separate one for the PI.
All types of business may have a requirement for this cover. They may have a legal requirement, ie employers liability (which is required under statute), they may need it as part of a contract (the business you are working for may insist on £5,000,000 public liability insurance or lastly, you are just a sensible and prudent business looking to protect your business, your assets and your bank account.
Why it’s important - examples
If you do not have employers liabiluty insurance, and you employ people, you could potentially face a fine of £2,500 PER DAY. In reality, this does not happen but you can be legally required to prove cover. Not only could you be fined, paying out on an employers liability claim, form your own pocket, can and will cost £1,000’s.
Whilst liability insurance claims are more rare than say, commercial building insurance, they are never small. You tend to find that once the no win, no fee solicitors get involved, the costs double and sometimes treble to pay for their fees.
The best way to protect you and your business from ptoential claims is to arrange a suitable combined liability insurance policy.
How businessinsure can help
Businessinsure understand the commercial insurance market, it is what we do and we do it well. We are an independent business insurance broker, we have access to a number of different insurers who are able to provide policies for what is called, liability in isolation.
Certain insurers do not want to provide cover for liabilities, without picking up the rest of business risks, such as buildings, contents and stock. However, there are other insurers who are more than happy to provide this cover, let us find the right ones for you.
More information
Combined liability insurance is a package which includes:-
Employers liability
Public liability
Products liability
You can get additional covers, ie contents, stock and buildings on a commercial combined insurance policy. Or, if you are involved in any of the construction trades, such as building, you may need liabilities, contract works, hired in plant and tools. This is called a contractors all risks policy, which we can provide.
Under UK law, if you employ anyone you must have in force valid employers liability insurance at a minimum limit of indemnity of £5,000,000. Most of the UK insurers that provide this cover will give a limit of £10,000,000.
You do not need to pay someone or hae a valid contract of employment in force to be liable for a claim. The law is very particular on the definitions of employees being very, very wide.
Public and products liability are usually provided together, at the same limit of indemnity. The minimum limit available in 2011 is £1,000,000. More usually it is offered at £2,000,000 although we can easily quote for limits to £5,000,000.
If you need cover in excess of this, ie £10,000,000 public liability, we will get you an excess of loss insurance quote. This is where we get another insurer to provide £5,000,000 on top of the five you already have. Annual premiums for excess of loss start at £550. Call us today to discuss.
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