If you’re a sole trader, partnership or SME with employees you are going to need Small Business Liability Insurance. We all know the expression where there’s blame there’s a claim and in today’s litigious society this is more of a threat than ever to small businesses.
Why do I need Small Business Liability Insurance?
Going about your day to day business involves risk – risk of injury to employees, risk of damage to other people’s property or bodily injury. As a business you need to protect yourself with Small Business Liability Insurance. Small Business Liability Insurance cover will meet the costs of defending your business and ultimately pay compensation if required by law. See our video Lack of Liability Insurance for Small Business.
Small Business Liability Insurance – Employers Liability Explained
If you employ staff, even on a part time, temporary, casual or voluntary basis you have a legal requirement to hold Employers Liability Insurance. This will protect you against the employee making a claim for compensation for injury or illness in the event of an accident in the workplace.
Employers Liability Insurance is typically arranged at an automatic level of £10,000,000 and a certificate is issued providing legal proof of insurance.
Small Business Liability Insurance – Public Liability Explained
If you visit clients / customers at their premises or you have premises where your customers visit you there’s a chance that they could injure themselves or you could accidentally damage something that belongs to your customer or another person.
Public Liability Insurance protects you in this situation. Typically cover is arranged for a minimum of £2,000,000 and cover can go as high as £10,000,000 for specific contracts, for example a number of councils will ask for £10,000,000 automatically before you undertake any work for them.
Dependent on your type of business and the work you undertake will dictate the level of Public Liability you require.
If you cause injury or damage to your customer or another party the chances are that you will be pursued by a solicitor for damages. Public Liability Insurance will provide you with cover to defend your position and ultimately pay compensation if required.
Small Business Liability Insurance – Products Liability Explained
If you sell a product or supply a service which involves the supply of a product then you will require Products Liability Insurance.
If the Product causes injury or damage to your customer or another party the chances are that you will be pursued by a solicitor for damages. Products Liability Insurance will provide you with cover to defend your position and ultimately pay compensation if required.
How do I arrange Small Business Liability Insurance cover?
The type of business you are in will affect how small business liability insurance is arranged. Most small business liability insurance policies come as a package which is tailored to your industry sector. For example if you are an office based business you would look at an Office Package policy which would incorporate your office contents and computers along with the small business liability insurance.
Premiums are calculated on a very individual basis and take factors into account such as trade, experience, area, turnover and Wageroll. Speak your broker to get all your details to right to get the best Business Liability Insurance Quote. For more information read our article the top ten tips to get the best business insurance quotes.