Get Quotes For Liability Insurance Cover

A simple definition of liability insurance is cover to protect a buyer from liabilities brought on by claims and lawsuits. This type of insurance usually includes employers liability, which is sometimes optional, public liability and product liability. Any tradesman running a business should have liability insurance because of the risks involved. Without liability cover, a business could face devastating claims from the public and employees that could literally put a company out of business. Liability insurance usually provides protection for the insured party against most claims submitted by a third party. Payments, if applicable are generally awarded to the third party and not the insured. When a claim is made, the insurer has an obligation to defend a client.

How Liability Insurance Cover Helps

A premium is set by an insurer to cover a business. This price depends on several factors including the type of business. An insurer will usually charge a book or average rate for businesses that are small to medium, and set a fee that is related to claims paid for similar services. This rate is usually used to figure the premium, which is reflected by the amount of business the company is engaged in. If an employer has employees, the insurer will usually use a payroll to determine the activity, whilst public and product liability is generally determined by turnover. In many cases, an insurer might adjust a premium based on claims records, risk management, etc. The end result could either reflect a reduction or increase in premiums, depending on how well or how poorly an employer performs.

Employers' Liability Insurance

Employers' liability insurance usually allows a company to cover costs for legal fees and damages for employees who become ill at work or injured whilst at work because of the employer. If negligence on the part of the employer is the case, an employee will often seek compensation. In the UK, an employer must have employers' liability insurance cover at a minimum of 5 million. Most UK insurers provide at least 10 million.

The only exception to this law is businesses that are not limited companies and there are no other employees except for the owner, or only close family members are employed. If an employer fails to have employers' liability insurance, the Health and Safety Executive or HSE, can fine an owner up to 2,500 for each day that the appropriate insurance is not in place. It is important to make sure that a policy is issued by an authorised insurer, or you will be at risk for breaking the law. A copy of the employers' liability insurance must be displayed where it can easily be read.

Public Liability

Any business that has customers or members of the public coming and going from the site usually have public liability cover. This insurance will usually protect a business owner from any damages caused by them to a third party or to their property. It will also likely cover costs, expenses and legal fees incurred. Premiums for public liability are usually figured by defining the business and on estimates for activity levels of the company.

Many warranties, conditions and exclusions can be applied to public liability policies, and it is quite important to discuss these factors with a knowledgeable insurance solicitor.

Generally, public liability is not mandatory; however, in most cases, a potential client will ask for proof of public liability before they will do business with a company.

Product Liability

An owner of a business is legally responsible for damages or injuries caused by a product he or she supplied. A product can be defined as a physical item sold or given away. This product must be fit for purpose, and should a faulty product be sold or given away, a claim can be filed against the owner, whether he or she manufactured it or not. Conditions that apply for a faulty product provided by an owner include a businesses' name on a product, repairs or changes to the product by a business, a manufacturer can't be identified, a manufacturer has halted business, or an owner imported a product was imported from outside the European Union. If these terms do not apply, the manufacture or processor is liable if you can prove:

-the produce supplied was faulty
-consumers were given warnings and safety instructions as to how to use the product
-terms for return of faulty goods to the processor or manufacturer were give to the consumer
-contracts with manufacturer/processor covers quality control, product returns and product safety
-good record keeping and quality control systems

Coverage include in product liability usually includes protection cover against any damages awarded because of personal injury of property damage because of your product.

The normal amount of product liability is usually 2 million. Businesses vary in the amount of cover purchased, but most policies run between 1 million to 5 million. Making sure that excellent quality control methods are in place can usually help to reduce premiums and help reduce any risks of claims. Quality control methods that earn merit will also keep the company's reputation respectable!

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