Business Liability Insurance

UK law stipulates that each business must have some form of business liability insurance. The extent of business liability insurance required by a particular business can vary depending on the industry, size and set up. Essentially, your business liability insurance should include public liability insurance, product liability insurance, professional indemnity insurance, employers' liability insurance and tax & VAT investigation insurance.

Business liability insurance and your responsibilities

Business will have a number of relationships where risks can and do arise. Customers, suppliers and employees all carry varying liability risks and different tendencies to make a business liability insurance claim against you. As an employer, you're also responsible for the actions of your employees, be it negligence of breaches or their statutory duty - a little more difficult to control!

Your approach to business liability insurance should begin with knowing what you're responsible for and the steps you're expected to take to reduce or control the risks. This will give you a guide as to what level of business insurance you need as well as knowing any specific areas which may not be included in a standard business liability policy. It is good practise to regularly check any changes to the business circumstances to ensure these are covered within your business liability insurance cover. An employer's statutory duties are detailed in the Health and Safety at Work Act 1974 and its associated regulations.

Buying business liability insurance

Before you buy a business liability insurance policy, check the small print for limitations or exclusions. If these conflict with your needs, speak to the business liability insurance provider to see if they will include add-ons to meet your needs. Essentially, you should be looking for your business liability insurance to protect the costs of any court awards or damages, claimants' costs and expenses where you or your employees are held legally liable.

If your business insurance needs to be extend beyond business liability insurance, you can explore the option of taking out a packaged policy to bundle together your cover. This can reduce the costs and associated administration. However, if you choose this route, don't settle for second best and make sure your business insurance requirements are not compromised.