Public and Employers Liability Insurance

How much public & employers liability insurance cover do I need?

The typical level of cover under a public liability insurance policy is between a minimum of £1 million and £5 million for small businesses such as plumbers and electricians.

When deciding on how much cover you need, think carefully about the maximum claim that could be made against you - here, your insurer can advise.

Recently awards for injury regularly exceed £1 million. Some businesses, where there is a chemical explosion, say, resulting in a serious fire on the premises and multiple personal injuries to employees, could face damages claims far in excess of this figure.

Sub contractors working for local councils and the government can be asked to increase the limit to £10 million and over.

For employers liability insurance, currently (2007) the law requires that as an employer you must have a minimum of £5 million of cover against claims for damage or injury. Most insurance policies automatically provide twice this amount, £10 million.

The law also demands that you exhibit a certificate of employers' liability insurance at the place of work, where employees can see it.

Can I buy public liability insurance on its own?

Yes. But remember that, depending on your type of business, and if your business has employees, some insurance companies could refuse to sell you public liability insurance cover without employer's liability insurance.

Product liability insurance typically comes free / is included with public liability insurance.

How can I reduce the number of claims against my business by employees and the public?

You will reduce the risk of insurance claims made against your business by ensuring that your business is operating safely. By improving the risk profile of your business, you could even reduce the cost of combined public and employers liability insurance cover because the more safely your business operates, the less likely it is that a claim will be made against you.

Your legal duties are set out in the Health and Safety at Work etc Act 1974. It is your responsibility to identify the health and safety needs of your business activities by:

• Carrying out regular risk assessments
• Taking action to remove or control the risks to meet the legal requirements and protect your employees

Safety management - taking steps to identify, manage and reduce risks - is an ongoing process and any business that ignores it does so at its peril.

If you make any changes in the workplace, for instance, you must carry out a new assessment of the hazards present.

Your insurer could accuse you of failing to meet your legal responsibilities for the health and safety of your employees, and the policy could allow the insurer to sue you to reclaim the cost of the compensation.

Where can I get advice on managing health and safety at work?

Advice on good health and safety management is available from the Health and Safety Executive and local authority environmental health departments.

Contact the Health & Safety Executive Infoline on 0845 345 0055 or log on to their website (http://www.hse.gov.uk) for help on workplace health and safety, and expert advice and support.

Topics cover all industries and business activities, including:

• How to carry out a risk assessment
• How to report an accident on yours or someone else's premises
• How many first aiders you need
• Personal protective equipment you must supply
• How to produce a health & safety policy
• Details you need to include on your Health & Safety law poster
• Work at height regulations