In business you insure STUFF you can see touch and feel!
You insure your LOSS OF PROFIT or REVENUE if the worst happens!
Lastly you insure your LIABILITIES, for everything you’ve ever done or will do.
This last category, Liabilities is by far the most important as this is where the biggest losses are likely to be and now with the advent of No Win, No Fee lawyers it is easier then ever for someone to have a go at you, often at no cost to themselves.
There are 4 main concerns, they are:
El = EMPLOYERS LIABILITY – Injury to employees or damage to their property
The only Liability cover required by Law, with heavy fines or even jail terms for non-compliance
Pl = PUBLIC LIABILITY – Covers damage to property or injury to people outside your business.
PD = PRODUCTS LIABILITY – Covers damage to property or injury to customers, by the product you manufacture, sell or supply.
PI = PROFESSIONAL INDEMNITY – Covers financial losses of your clients, where they allege the loss results from your negligence, errors, or omissions.
LIMITS of LIABILITY
EL – £10 Million as standard & £5 Million for terrorism, although only £2 Million required by law.
PL/PD – £2 Million base level, although, £5 more standard. Extra layers as required.
PI – £100,000 base level, with limits up to £5 Million not unusual
Obviously, there are lots of specific circumstances, for instance medical negligence PI often covers bodily injury also. If you can think of a situation where a Duty of Care arises, and that is almost any situation where you take some money off someone, to do a thing or sell a product, then an insurance contract will exist to cover the liability that arises.
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