If you’ve never run your own business before, it can be a little confusing to know what types of liability insurance you need to make sure you’re protected.
Below is a quick guide to three of the main types of liability insurance provided to businesses by The Co-operative Insurance together with an explanation of why your business might need them.
- Public liability insurance
Public liability insurance covers two main areas; firstly, it covers you for any claims made against you if a client, customer, supplier or anyone else visiting your premises is injured whilst visiting your business premises.
Public liability insurance can help protect against claims for things such as a client tripping over a box that’s been left lying around your factory and injuring their ankle.
Secondly, this kind of liability insurance helps protect you when you’re out and about on business yourself. Let’s say you visit clients to fix their computers; what would happen if you accidentally wiped out a load of important data and couldn’t recover it? The client would likely make a claim against you for their loss and public liability insurance would come in very useful here.
Public liability doesn’t just cover the cost of any damage; it also includes legal help so you can fight any claim made against you if you feel it’s unjustified.
- Employers’ liability insurance
Public liability insurance from The Co-operative Insurance or other insurer does not cover any employees you may have. For this purpose you’ll need separate employers’ liability insurance.
This will protect you against any claims by your staff for injury or illness that’s taken place on your premises through no fault of their own.
Example of this are; an employee electrocuting themselves due to unsafe wiring in your office or being exposed to toxic fumes whilst operating machinery, due to negligence on your part.
- Product liability insurance
Product liability insurance isn’t necessary for every business; as the name implies it only applies to companies who sell or give away products. At the Co-operative Insurance we can advise you based on your individual circumstances whether or not you need product liability insurance.
You can be held responsible for damages claims even though you’re not the manufacturer of the product. If your name is on it for example, then you’ll be held responsible if it causes injury to anyone as a result of a defect.
For example, you might import hair straighteners from China and rebrand them with your business name. If your product burns people as they’re using it, you will need product liability insurance and the legal cover that comes with it to defend any claims made against you.0