Why Do You Need A Liability Insurance Policy?

liability insurance policy

This guide is to help you understand the different types of liability insurance, what they are for and why you might need them. No matter the size of your business, once you know how a liability insurance policy works and the different types available, you can make sure that you have the appropriate cover in place should you need it.

What is a liability insurance policy?

Liability insurance provides protection from claims made against you or your company; due to things like loss of business, personal injuries and/or accidental damage to property, that could’ve perhaps been caused by a member of your staff, a malfunctioning piece of equipment or even a product you manufacture. A liability insurance policy covers the legal costs and any pay-outs where the insured party would be found liable. 

The 5 types of liability insurance

Public Liability – coverage to protect a business against liability for any incidents of injury to a member of public, or accidental damage to their property that could happen outside of the company’s regular premises. This type of policy is essential for those companies that operate out and about, like delivery drivers, building contractors and outdoor traders for example, but also those that allow the public through their doors like retailers, salons and pubs.

Product Liability – coverage to protect a company that manufactures products for sale on the general market. Product Liability safeguards against any charges arising from an injury or death caused by one of their products.

Professional Indemnity – coverage to protect a business against negligence claims due to financial harm, that could be as a result of the insured party’s inability to perform or provide correct advice. This type of policy is important for industries that advise their clients, like a consultant or broker and for some occupations like Solicitors, Professional Indemnity cover is mandatory.

Directors & Officers Liability – coverage for a firm’s board of directors or officers against liability if the company gets sued, perhaps due to a poor investment decision, releasing sensitive information or failure to maintain property. Some corporations provide additional protection to their executive teams on top of the standard Employer’s Liability.

Employer’s Liability – coverage for employers to protect their business against any liabilities arising from injuries or the death of an employee. Employer’s Liability is compulsory and all businesses that have employees should have this cover in place, it is the only legally required business insurance.

Where to get a liability insurance quote

Many business owners know that they need liability insurance, however the process of finding the best cover from the best provider can be a headache. It’s easier than ever to search for insurance policies online, but it’s also easy to be presented with countless options, lots of people can find themselves overwhelmed with too many choices and offers. Eventually, they give up and unfortunately the longer they wait, the greater the risk that an accident could occur.

The best method to compare your liability insurance policy is to use a broker, why not get unbiased advice from a professional who knows what they’re searching for? An Insurance Broker can save you time, hassle and money, whilst making sure that they have arranged the most appropriate cover for your requirements.

1st Choice Insurance are an award-winning independent brokerage and our team of friendly and knowledgeable advisors can offer you free advice on your liability insurance policy and a no obligation quote. Give us a call on 01743 770 500.