Business Liability Insurance Explained

If you run a business in the UK, you are, in most- Professional indemnity insurance means that
cases, required by law to have some form ofyour business is protected against claims that you
business liability insurance. It is usually made up ofhave damaged another business or caused them
several different types of insurance that areto make a financial loss through a mistake or
bundled into one policy, and any of thesenegligence;
elements may be required. Typically a policy will- Tax & VAT investigation insurance
include some or all of the features below:reimburses you for the cost of an investigation
- Public liability insurance will cover you for costsby Revenue & Customs. At first glance it
associated with injury to a member of the publicdoesn't appear to offer a huge benefit, but an
as a result of your actions. It can cover peopleinvestigation could seriously affect your business
visiting your premises, or incidents that occurand its income as you may have to pay your
when you are carrying out work on other peoplesaccountant additional fees, or even legal fees.
premises. It will also cover your associated costs,The cost of the business liability insurance will
such as legal fees or the NHS reclaiming the costdepend on the type of industry your business is
of hospital treatment;in, the size of it and the way it is organised. As
- Employers' liability insurance will be required ifthese policies cover a number of different areas,
your business has any employees, includingyou should get advice from an insurance specialist
yourself if it is a limited company and you are thebefore buying. This will ensure that you get
managing director. It covers you againstbusiness liability insurance that fits your
compensation claims made by or on behalf ofrequirements, covering those areas which are
employees who are injured or made ill in therelevant but not having you pay for cover which
course of their work;is not needed. A specialist intermediary is also
- Product liability insurance protects you againstmore likely to be able to provide a tailored policy
damages paid if a product you supply,than a large organisation that takes a 'one size fits
manufacture or refurbish is responsible for injuryall' approach, possibly resulting in a more
to people or damage to property. It could alsocompetitive premium.
cover any associated legal costs;