Public and Employers Liability Insurance

What does public & employers liability insurance cover?

Public liability insurance insures your business against the risk of causing bodily injury or harm to the person or property of a third party, and which has resulted from your ownership, use and/or maintenance of the insured business premises and services.

Having a public liability insurance provides backing up to a specified amount for the legal costs of defending claims against your business and the costs of compensating an injured party for the resulting pain and suffering and/or property damage caused by your business activities.

Public liability insurance exclusions?

Public liability insurance doesn't cover you for any claims made against you or the business for negligent advice. For this you will need a separate professional indemnity policy.

What does employers' liability insurance cover?

Employer Liability Insurance gives you and your employees the reassurance that in the event of injury or harm then their legitimate losses/injuries will be legally covered, as will any legal fees.

Can my employers' liability insurance policy contain conditions?

When taking out employer's liability insurance, make sure that the policy covers all of the activities that relate to your business activities.

According to the Health and Safety Executive, your insurer is not entitled to refuse to pay compensation purely because:

• you didn't provide reasonable protection against injury or disease;
• you can't provide certain information to the insurer;
• you went against their advice (for example, admitted it was your fault)
• you omitted to do something they told you to (e.g., report the incident);
• you failed to meet any legal requirement connected with the protection of your employees.
• None of the foregoing means you can overlook your legal duty to safeguard the mental and physical wellbeing of staff.

You must carry out regular risk assessments, and take practical steps to care for your employees and report incidents.

Your insurer could turn the tables on you by claiming that you have failed to meet your duty of care for the health and safety of your employees, and that this failure on your part has led to the claim.

In this way the policy may allow the insurer to sue you to claw back the cost of the compensation.