What is legal liability insurance?

legal liability policy is a form of insurance that covers claims for pedestrian injury and property damage.

legal liability insurance policy ensures the protection of the policy holder’s legal expenses in addition to legal pay-outs, which the insured would be responsible for if they are found legally accountable.

If a claim is successful, the insured would only have to pay an excess sum once the claim has ended, which avoids them paying out a vast compensation sum. 

An individual or business can purchase liability insurance for a variety of purposes in order to protect them, their business or their property.

Different types of legal liability insurance

Here at Rigby Financial we can help you find the right legal liability insurance for you or your organisation.

We provide expert advice on various forms of legal liability insurance including:

1. Public liability insurance

Public liability insurance is usually included within a business insurance policy. It protects your organisation from being liable for injury or damage claims to an individual, a third party, or a separate organisation.

Although it is not mandatory to take out public liability insurance, it may be required by other companies or third parties that you conduct business with.

Public liability insurance also provides you and your customers with reassurance regarding protection. The majority of small businesses take out a public liability insurance policy, as any compensation claims may affect their business to the point of failure.

An example of a public liability claim involves a curtain fitter’s ladder falling on a painter and injuring them to the point they had to take time off work. The claim was settled at £20,352, although the curtain fitter only had to pay £200 excess, as he took out public liability insurance before the accident.

There are a number of business types that could benefit from taking out public liability insurance, particularly those that operate in public places or invite clients into their business premises.

This could be anything from inviting people into the kitchen of a restaurant or operating a street food stall, to inviting clients into an office for a meeting.

It’s also worth considering if you regularly work on other premises, like if you’re a tradesman who works in other people’s homes.

Having public liability in place can help protect you legally and financially in case there’s an accident.

2. Employers’ liability insurance

This type of liability insurance is mandatory for employers with more than one employee, and if your business is found without employers’ liability insurance, you could be fined up to £2,500 a day. Employers’ liability insurance is implemented in order to protect your business against being liable for compensation claims due to employee injuries or death in the workplace.

Claims can include, developing a long-term illness or severe injury as a result of working or using machinery within your organisation. The employee is legally entitled to make a claim, however having employers’ liability insurance allows the employer to avoid incurring extensive legal costs.

3. Product liability insurance

Product liability insurance can be implemented by various businesses who require protection against liability for their products causing injury or damage to an individual or company. In some instances, your business may actually be liable even if you did not manufacture the product, as your name may be detailed on the product or you were involved in the refurbishment processes.

In accordance with the Consumer Protection Act, there are a variety of parties that can be held responsible for damage, injury and death caused through the handling of specific products or its counterparts. The following parties can be held accountable for such occurrences:  

  • Manufacturers
  • Distributors
  • Suppliers
  • Retailers

Most product liability claims are a result of the manufacturer’s negligence. However, in some instance, the blame can be passed on to the other parties. This usually occurs if the manufacturer goes out of business or exists outside of the EU.

A product liability claim can be brought against your business if someone is directly injured by your product due to it being defective or poorly manufactured. You could also face a claim if you have been negligent by failing to provide accurate warnings or instructions for the use of the product and this has resulted in injury.  Your business can protect itself from these claims by obtaining product liability insurance, which can diminish blame and decrease compensation costs.

You should note that even if you employ people on short-term contracts, or rely on casual work and contractors, you will still typically need to have employers’ liability insurance in place to cover yourself against any accidents or injuries.

In fact, it could be even more important if you’re employing people who don’t work with your business regularly and might not be as highly trained in your health and safety standards.

Where can I buy legal liability insurance?

Here at Rigby Financial, our insurance experts can help you find a suitable legal liability insurance policy that will offer you the ultimate protection required for you or your business.

We ensure that we consider all your insurance preferences, including your budget, in order to offer you the best-suited liability insurance on the market.

For further information regarding our insurance service or for a free quotation, call us on 01744 886077.

What affects the cost of my liability insurance?

The amount you’ll pay for your insurance will depend on the type of insurance policy you take out as well as a number of other factors relating to your business.

For example, the size of your business will likely have a big impact on the overall cost.

Other factors like the type of business you’re involved in, how likely you are to come into contact with members of the public, the risks associated with the work you do, or even the products you sell can all impact how much you’ll have to pay for insurance.

If you want to get a clear picture of how much liability insurance you need, get in touch with us today and one of our experts will be able to take you through your options.

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