Liability Insurance, Public Liability Insurance, Products Liability Insurance and Employers Liability Insurance - Businessinsure - Business and Commercial Insurance Brokers

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.

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.