One of the main reasons that businesses buy insurance, and in some cases the only reason, is to cover their LIABILITIES. These claims can run into £100’s of thousands of pounds, sometimes millions!
These are the things for which they are legally responsible, which if they mess up have financial impacts on other people, whether that is their employees, members of the public, other businesses or their customers. There are 5 main areas, which are:
EMPLOYERS – Covers damage or injury to employees of your business in the course of their employment. This is required by law. Fines can be up ton£2,500 per day or up to 6 months in jail for principals or directors who fail to arrange the correct cover for their employees. It’s the BIG ONE!
PUBLIC – Covers damage or injury to members of the public, essentially anyone outside your business.
PRODUCTS – Covers damage or injury caused to customers by the product you manufacture, sell or supply.
PROFESSIONAL INDEMNITY – Covers the financial losses of your customers, where they allege that the financial loss was the result of your professional negligence, errors or omissions, whether or not it caused bodily injury.
DIRECTORS & OFFICERS – Covers the legal costs of defending actions against directors and officers in their personal capacity, for actions against them in relation to their work for the business in which they are employed.
These are the 5 main liabilities businesses look to cover.
There are others which relate to corporate legal liability, employment practice, data protection, tax investigations, property, contract and tenancy disputes, as well as the requirement for debt recovery and statutory licence protection.
In these cases, legal expenses cover is available to cover the cost of defending an action or taking action against someone else.
If you’d like to know more about your specific liabilities, and the duty of care and how liabilities arise, then just get in touch for an informal chat. You might be liable for things of which you weren’t even aware.
Have a great day, don’t worry about these matters, let us do it for you 😊