Your best defence against a compensation culture
It’s the worst-case scenario every company fears. If a compensation claim goes to court and the payout is high, something as trivial as tripping over an exposed cable or slipping on a wet floor can bankrupt a business without the right insurance in place.
What is Liability Insurance?
Liability Insurance provides financial protection when someone tries to claim compensation from your business. This type of policy usually combines Employers’ Liability Insurance with Public Liability Insurance. You may also need Products Liability Insurance – or specialist cover that’s tailored to your line of work.
“Although it isn’t a legal requirement in the UK, certain professions will be required by their regulators to have Liability Insurance. It’s also advisable if your business is operating in the public domain. For example, if you receive visitors at your premises or you operate in and around the general public, there’s a risk that someone may injure themselves or property might be damaged as a result of your activity.”
- Ben Butler, Liability Insurance specialist at Macbeth
How Liability Insurance protects you
If your business is accused of causing death, injury or damage to property, it’s likely you’ll face a substantial compensation claim. With Liability Insurance your insurer will pay the compensation (up to the cover limit) – or defend the claim if they feel you’re not legally liable.
In today’s litigious society, running a successful business brings a range of risks – and this is where Liability Insurance comes into play.
- Employers’ Liability Insurance – you’re covered for compensation claims made by past and present employees
- Public Liability Insurance – for claims made by anyone outside your company, from customers and suppliers to visitors and passers-by
- Products Liability Insurance – your cover can also include your legal responsibility to ensure a product you design, manufacture or sell doesn’t injure someone or damage their property
- Airside Liability Insurance – if your business works at an airport, you may need a much higher level of liability cover
- Specialist Liability Insurance – for high-risk occupations like roofing, scaffolding and recycling, and for companies in sectors ranging from security and cleaning to recruitment and medical device production
An insurer will fight your corner if you’re not liable – and your legal costs are covered even if the claim against you is found to be false.
Why you should consider Liability Insurance
- Current Health & Safety legislation makes Employers’ Liability Insurance compulsory for most companies. Fines for failing to comply with the law can be as much as £2,500 a day.
- Public Liability Insurance may also be compulsory for some professions, and it’s often a contractual requirement – so not having it can put you at a commercial disadvantage.
- As well as covering the legal costs involved in defending a claim plus the compensation awarded to the claimant, Public Liability Insurance includes any costs the NHS might claim for ambulance call outs and hospital treatment.
- It’s reassuring to know that an insurer will fight your corner if you’re not liable – and that your legal costs are covered even if the claim against you is found to be false.
- Arranging Liability Insurance can be a minefield. To ensure you have adequate cover, we’ll help you establish who’s considered to be an employee in the eyes of the law, how much your cover limit should be, and how to deal with complex issues such as US exports.
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"I have been using Macbeth for insurance since its formation in 1992. For me the benefit is that I can talk to people who know me, know my needs, & will come back with sensible ideas and realistic prices. Why should I bother with call centres and telephone menus when I can have real people instead? I have recommended Macbeth to colleagues, and will continue to do so."