Small Business Liability Insurance
Small Business Liability Insurance should be a familiar term if you employ people, or sell a product or service to the public. There are three main types of liability insurance. These are Public Liability, Employers Liability and Product Liability Insurance. In this blog post, we will offer a no fluff guide to help small businesses understand what small business liability insurance is, who needs it, and how they protect small businesses.
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Explaining Small Business Liability Insurance
Small Business Liability Insurance – Employers Liability
What is it? Employer’s liability protects businesses from legal costs and compensation should an employee have an accident or become ill due to their work. Without Employers Liability insurance in place, your business could be left seriously out of pocket should an employee be hurt at work.
Who needs it? As soon as you become an employer, it’s a requirement under UK law that you have Employers Liability insurance in place. Your policy must also cover at least £5 million in liabilities. If you do not have the correct level of insurance in place, you can be fined up to £2,500 for each day that you’re not covered (Gov.uk).
What risks does it cover? Employer’s liability will pay compensation to employees who are injured as a result of doing their job. This could be an employee getting burnt in the kitchen or slipping on a wet floor. It will also pay compensation to employees who are left with long-term illness as a result of their work, such as chest infections or asthma caused by breathing in factory fume. Employers Liability is there to protect your business from expensive legal cases. Employers liability is a vital small business liability insurance policy that must be in place.
Small Business Liability Insurance – Public Liability
What is it? It’s very similar to Employers Liability, only instead of offering protection from claims made by an employee; it protects you against claims made by the public. This could be a customer, a visitor, or just someone walking through your store to get somewhere. If they were injured on your premises and it wasn’t their fault, you could be liable.
Who needs it? Whilst Public Liability is not required by law, it’s recommended that any business that deals face to face with customers has cover in place. Any business where the public may visit, from a café to a bowling alley, from a bookshop to a ski slope – should take out a public liability insurance policy.
What risks does it cover? Public Liability Insurance covers you for claims of damages made against you or your business by a member of the public due to an injury, death or damage to their property. It can also cover any subsequent related costs and expenses such as legal fees or hospital treatment. So if one of your vehicle’s damages a customer’s property or a member of the public trips over stock, left in the wrong place in your store, you have insurance in place to pay compensation. Public liability is a vital small business liability insurance policy that all customer-facing businesses must adapt.
Small Business Liability Insurance – Product Liability
What is it? Product liability insurance protects against claims for personal injury or property damage caused by a product your business designed, sold or supplied. So no matter where you fit into the supply chain, if you handle a product that causes damage or injury, you could be liable. This insurance covers legal fees and compensation costs if and when this happens.
Who needs it? Any business who supplies a product should consider product liability insurance. Under the Consumer Protection Act manufacturers, distributors, suppliers and retailers could be held responsible for damage, injury or death caused by their product or product components. Adding this cover to your small business liability insurance policy would offer your business the best protection.
What risks does it cover? Product Liability Insurance can cover legal costs and compensation when products made or sold by a company causes damage, injury or death. This also covers product components. A good example would be the recent case in the US where Johnson & Johnson were sued because their signature talcum powder has been linked to causing cancer to some of their customers (BBC, July 2018).
Get Small Business Liability Insurance Quotes
With a friendly and knowledgeable sales team, we will make sure that you can make an informed choice and explore all the options available to you. We can advise on the best level and type of cover, for any business which has contact with customers. We can cut through the noise and explain the best small business liability insurance policy for your needs.
If you’re looking for a reliable small business liability insurance quotes, 1st Choice Insurance is here to help. Call our friendly, experienced team on 0800 078 7003 – 0300 600 0603 for a no obligation small business liability insurance quotation or use our Get a Quote Form.