Common Insurance Covers
Employer’s Liability (Compulsory Insurance) Act 1969
Employers are responsible for the health and safety of their employees while they are at work. Your employees may be injured at work or they, or your former employees, may become ill as a result of their work whilst in your employment. They might try to claim compensation from you if they believe you are responsible. The Employers’ Liability (Compulsory Insurance) Act 1969 ensures that you have at least a minimum level of insurance cover against any such claims.
Employers’ liability insurance will enable you to meet the cost of compensation for your employees’ injuries or illnesses whether they are caused on or off site.
An employee is defined as any person: under a contract of service, apprenticeship with you, hired by you, borrowed by you, engaged in connection with work experience, training schemes, labour only subcontractors, self-employed working on a labour only basis under your control or supervision, voluntary helpers and/or any person working for you in connection with the business.
For further information you can visit www.hse.gov.uk
Public Liability Insurance
Public liability insurance covers you for claims made against you by members of the public or other businesses.
It might be something that has happened at your business premises such as a client slipping on a wet floor or it could be something that happened outside of your workplace such as an employee accidentally spilling coffee on a clients computer when visiting their office.
You should have Public liability insurance if you deal with the public, have clients visiting your home office or business premises or if you or an employee visits your clients place of work.
Products Liability Insurance
Product liability insurance covers you against compensation damages as a result of damage to property or personal injury caused by your product which has been sold, given away, supplied or manufactured by you.
Even if you do not manufacture the products you sell you will still need products liability insurance because the manufacturer of the products might not be clearly identifiable to the customer or the manufacturer might have gone out of business. You may also find that claims are made against you because your businesses name is on the product or your business might have repaired, changed, refurbished the product or the product has been imported from outside of the European Union.
Property Owners Liability Insurance
Property owners’ liability insurance covers you against compensation to members of the public/tenants if they suffer an injury following an accident that is linked to your premises.
Legal Expenses Insurance
Legal expenses insurance will cover you against the costs of pursuing a legal action or defending a legal action against a third party. Typical legal expenses cover under a commercial policy can include, cover for contract disputes, health and safety prosecutions, data protection, employment disputes and compensation awards, criminal prosecution, bodily injury, property protection, tax protection, statutory licence protection or tenancy disputes.
Typical legal expenses cover for a landlords property owners policy can include, trying to obtain possession of property from tenants, property damage, eviction of squatters, recovery of rent arrears from tenants, defence of criminal prosecutions relating to the letting of your property and actions for unlawful discrimination, hotel expenses when trying to obtain possession, storage costs for household belongings when trying to obtain possession, tax & legal advice.
Business interruption insurance, also known as Loss of Income Insurance, covers you against a loss as a result of your business being interrupted in the event of an insured peril occurring e.g. there is a fire at your business premises and as a result you are unable to trade, thereby losing your income.
If you are a person, company, partnership or entity which provides advice, design, specification or other professional services and you are perceived by your clients to be an expert in your field then Professional Indemnity Insurance will cover you against:
- Wrongful advice
- Errors on your behalf
- Negligent Design
Professional Indemnity Insurance will put you back in the position you was in prior to the incurred loss or damage.
Fidelity covers you against theft by dishonest employees.
Efficacy covers you against claims arising out of the failure of duties which you have been contracted to perform. For example, an alarm fitter is contracted to fit an alarm system in a shop, the shop suffers a burglary and the alarm does not go off because the alarm installer has failed to do their job properly.