Aside from Employers’ Liability, there are a number of different liability insurance products designed to protect a business. These include:
- Public Liability Insurance
- Product Liability Insurance
- Professional Indemnity Insurance
- Directors and Officers Insurance
- Environmental Liability Insurance
- Legal Expenses Insurance
Public Liability Insurance covers the financial cost of compensation to members of the public (anyone who isn’t your employee) for death, injury or damage to their property that occurs as a result of your or your employees’ negligence. This involves members of the public who visit your business, take part in your activities or watch activities you have organised.
Product Liability Insurance covers the cost of compensation to anyone who is injured, or whose property is damaged, as a result of a fault in a product you design, manufacture or supply.
Professional Indemnity Insurance covers the cost of compensation to clients if your professional advice has caused them to lose money. This is type of insurance is particularly advisable for professionals such as solicitors, accountants, financial advisers, architects and surveyors.
Directors and Officers (D&O) Insurance covers you for the cost of compensation in instances where a claim is made by a customer against one of your business directors, or other member of staff.
Environmental Liability Insurance is recommended if your business causes damage to water, land, protected plants and animals, or protected plant and animal habitats, as it covers the cost of bringing about adequate repairs.
Legal Expenses Insurance covers the cost of legal action taken in defending your business in instances where legal action is not covered by your liability insurance e.g. an employment tribunal.