The Lowdown: Public Liability Insurance & Employee Liability Insurance

Ensuring that you, your staff and your business are adequately insured should be one of the initial steps you take when launching your own business. Over the past five years the UK has developed a ‘claim culture’, meaning that should the slightest incident occur, your company is always at risk of facing a legal dispute.

According to the Compensation Recovery Unit of the Department of Work and Pensions (DWP), public liability settlements reached an all-time high between 2007 and 2011, increasing by an astonishing 18 per cent. In one year alone from 2010 to 2011, the compensation pay outs recorded by the Compensation Recovery Unit was over an astonishing £10.6 million.

When considering the pros and cons of public liability insurance, it is imperative to take into account your position without the additional protection. Funding legal fees, protecting your business and paying out compensation could lead to bankruptcy without adequate cover.

Public liability insurance covers more than big events and out of office incidents. If you ever do business outside of your office walls, visit clients at their base or hold meetings within your place of work, public liability insurance covers any accidents or mishaps.

Depending on your line of work, public liability insurance ,which covers any issues with good or products you have dealt with, is highly advantageous. Whether you produce and sell your own goods, or you simply maintain, repair, install or erect items, knowing you are protected against any negative impact your service may inflict can give you that peace of mind to go about your daily duties.

Compare public liability insurance online to get the best quote and to ensure your cover includes all activities you would usually encounter in your working day. You want to be sure that, whether someone claims for a health injury at a sporting event you’ve planned, or you break an office computer at a client’s office, you’re covered to settle any claims and compensation.

Although your organisation may generally run smoothly with health and safety pathways firmly instigated, ‘no win, no fee’ legal services have increased the number of public liability claims, tenfold. Exaggerated misfortunes together with Claims Management Companies (CMCs) are a lethal combination for any business without satisfactory protection.

CMCs can be pushy and persuasive, exhausting and exploiting rhetoric to convince individuals that they have a right to claim for the slightest misadventure. The Association of British Insurers (ABI) reported that over 51 per cent of consumers had been contacted directly by a CMC in 2010.

Every respectable company always considers the wellbeing of its employees, and will often put policies and training in place to enhance this care. Whatever level of precautions you take for your team, the key annual figures from the Health and Safety Executive (HSE) for 2010/11 suggest that cover is essential if you do choose to expand your team.

Once you choose to employ a workforce of any size, it is a legal requirement that you company takes out employee liability insurance. Whether your workers are voluntary, self-employed or permanent employees, if they perform work related duties for your business you could be liable.

The key annual figures from HSE affirmed that 1.2 million working people suffered from a work-related illness in 2010/11 and 200,000 reportable injuries occurred in addition to over 170 deaths. Such high, confirmed statistics only emphasises the importance of employee liability insurance.

It is legally expected that a company with employees invests in a policy which provides a minimum of £5 million in cover.  Check the fine print of your cover carefully to be sure that it protects you against compensation claims, legal fees and injuries or illness caused by terrorism.

Compare public liability insurance and employee insurance online and you will find that investing in a dual package is often value for money and covers all corners. Though you can be fined for not taking out the latter, this is just a small fraction of the price you will have to pay should you get caught up in a claim. Though employee liability insurance is compulsory, it is often recommended that both types of insurance are taken out by businesses of all sizes.

View your insurance as an investment for your business. With it you will be able to take on tasks with confidence, knowing that should the worst occur you have a firm foundation behind you to protect you, your business and your employees. Compare Public Liability insurance rates online to get the best tailored price for your industry and line of work.

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