Products liability insurance
Who it’s for
Most businesses will require some level of liability insurance. The main liability insurance that is required by law is employers liability insurance.
If you are an individual with no employees trading as a sole trader or you trade as a partnership there is no legal requirement to have employers liability insurance. However, if you employ anyone then you are legally required to have employers liability insurance. A limited company is also required to have employers liability insurance. Even if the limited company only has working directors (who also probably own the limited company) then there is a legal requirement to have employers liability insurance. The limited company is a separate legal entity and the limited company is therefore the employer. The employers liability insurance must be taken out in the name of the limited company.
Why it’s important - examples
Employers liability insurance covers employees against injury, illness or disease caused during the course of their employment. The legal minimum limit of indemnity any one claim is £5,000,000 however most insurers provide a limit of indmenity of £10,000,000 for employers liability insurance.
Public liability insurance is insurance against damage caused to third party property or persons. For example, an electrician may damage someones property when working on their premises. if proven to be negligent, this would result in a clain against them and the cover to protect the company or individual is public liability insurance. Public liability insurance is not required by law. However, it is a prudent and sensible insurance cover to take out. Many companies, when appointing sub-contractors insist on the sub contractor having public liability insurance. This can be for varying limits of indemnity, usually this is £1,000,000 or £2,000,000 any one event although increased limits of indemnity of £5,000,000 and higher can be arranged.
Products liability relates to damage caused by products supplied by a company, whether manufactured by them or not. Again, differing limits of indemnity can be purchased.
More information
The following is a brief summary of the insurance cover available on a UK insurers public liability insurance, products liability insurance and employers liability insurance package policy. This is an example of one insurance companies policy.
Many insurers offer similar public liability insurance, products liability insurance and employers liability insurance package policies and the insurance cover will be similar. However, please note that most public liability insurance, products liability insurance and employers liability insurance package policies will differ in many ways. Employers liability insurance is covered by legislation and cannot have specific warranties applied. however, public and products liability insurance can be subject to more specific warranties. Any warranties or conditions applied to public liability insurance or products liability insurance are very important.
You should always ask for your public liability insurance, products liability insurance and employers liability insurance quotation in writing and ensure that you read through the terms, conditions, warranties, exclusions, excesses and sums insured fully before accepting any insurance quotation. If a warranty is applicable this may mean that insurance cover will not apply in certain circumstances. For example, a public liability insurance policy may exclude the use of or application of heat (ie blowlamps). If a claim is caused by this event then cover will not apply. Or, if a products liability insurance policy does not include cover for products exported to the United States of America then insurance cover may not apply for injury, illness or damage caused by products exported to the USA.
The old adage “the cheapest is not necessarily the best” is certainly true for business insurance and commercial insurance which includes surgery insurance. Businessinsure will always provide you with a full written quotation based on your insurance requirements that we have discussed. Whilst we can advise you that we feel a quotation is suitable for you, you should always ensure that any business insurance quotation that we provide to you provides adequate insurance protection for your business. Public liability insurance, products liability insurance and employers liability insurance package policy cover summary Employers’ Liability.
Indemnity Limit £10 Million (inclusive of legal costs) for any one occurrence, unless otherwise
shown in the schedule
Public and Product Liability
Indemnity Limit for any one occurrence as shown in the schedule. Limits of indemnity available are £1,000,000, £2,000,000 and £5,000,000
Other features
24 hour business assistance services
Free Helpline services available 24 hours a day, 7 days a week for:-
- Legal Advice on any business problem including Employment, Tax, Contract Disputes etc
- Emergency Assistance – rapid response from reputable local contractors to deal with any sort of emergency on your premises, including burst pipes, drainage problems, gas, electricity failures, serious roof damage
- Glass Replacement and Locksmith Services – rapid call outs for any glazing or door & window security problems.
Instalment Payment Method available in most cases
Quoteline: 08456 024 589 (local call rates apply)
Quoteline: 08456 024 589
- Rapid cover
- Competitive pricing
- Expert knowledge
Businessinsure Limited are authorised and regulated by the
Financial Services Authority – our reference number is 303964. Our registered office is 24 Whitefriars Street
Perth, PH1 1PP. Our trading address is: Suite 4, Old Academy Building, 7 Rose Terrace, Perth, PH1 5HA. Registered in Scotland no. 225808.