Rigby Financial
What is liability insurance?
Liability insurance can provide protection from injury claims and damage to property, caused by the purchaser. Your insurer will pay out to the third party making the claim against you, saving you on a costly bill should a claim ever be brought against you.
At Rigby Financial, we can help to arrange the right cover for you or your business. There are a wide range of policies available depending on the size of your business, offering and the industry you work in.
The main types of liability insurance available are employers’ liability, public liability and product liability.
Protecting your business against everyday risks
Construction and manufacturing are high-risk sectors. Busy sites, heavy machinery, complex processes, and multiple contractors all increase the chance of accidents. Even with strong safety measures in place, things can still go wrong, and the financial impact of defending or settling a liability claim can be significant.
Liability insurance gives you vital protection, covering legal costs and compensation claims that could otherwise fall directly on your business. It also shows clients, suppliers and partners that you take your responsibilities seriously, which is often a requirement before contracts can go ahead.
Types of liability insurance to consider
Different businesses face different risks, which is why liability cover often includes several key areas:
- Employers’ Liability Insurance
A legal requirement in the UK if you employ staff, including part-time or temporary workers. It covers you if an employee is injured or becomes ill as a result of their work. - Public Liability Insurance
Covers claims from third parties who suffer injury or property damage linked to your business activities. While not always a legal requirement, it is often contractually required by clients. - Product Liability Insurance
Protects your business if a product you have manufactured, supplied or installed causes injury or damage. This is especially relevant for manufacturers and contractors working with materials, machinery or installations.
Why liability insurance matters for construction & manufacturing
The risks faced in these industries are wide-ranging. Examples include:
- A visitor to your site is injured and seeks compensation.
- A subcontractor accidentally damages a client’s property during installation.
- A manufactured product later causes damage due to a fault.
In each of these situations, liability insurance can provide cover for legal defence, compensation payments and associated costs, preventing a single incident from threatening the financial stability of your business.
Meeting legal and contractual obligations
- Employers’ Liability Insurance is compulsory for most UK businesses with employees. Without it, you could face fines and regulatory penalties.
- Many clients and contractors require proof of Public Liability Insurance before work begins.
- Product Liability Insurance may be essential if your business manufactures or installs goods that could cause harm.
Having the right policies in place ensures compliance and helps you avoid barriers when tendering or securing contracts.
Choosing the right cover
When arranging liability insurance, factors to consider include:
- The type of work your business carries out.
- Whether you employ staff or subcontractors.
- The risks associated with your products or services.
- Any contractual requirements set by clients.
At Rigby Financial, we’ll review your operations and help you arrange the right mix of liability policies, ensuring you are fully covered without paying for protection you don’t need.
Why work with Rigby Financial?
With over 40 years’ experience supporting businesses in construction and manufacturing, we understand the unique risks you face. Our team will guide you through your liability insurance options, explain what’s essential, and provide cover that fits your requirements.
