Liability Cover Explained

Liability Cover Explained Liability Cover or Liability insurance is a part of the general insurance system of risk financing to protect the purchaser (the "insured") from the risks of liabilities, imposed by lawsuits and similar claim. The Types of Liability Cover/ Insurance Employers' liability insurance Employers' liability (EL) covers the costs of compensation and legal fees for employees who are injured or made ill at work through the fault of the employer. If you are an employer you are legally obliged to have employers' liability insurance. You can be fined up to £2,500 for every day you do not have appropriate insurance. You are obliged to have cover for compensation Of at least £5 million, but most policies offer cover for at least £10 million. Exemption EL is not needed in following cases i) if your company has no employees. ii) It's a family business with family members as workers. Coverage 2 All permanent employees, contract, casual and seasonal employees, labour-only subcontractors. Premium pay factors The factors on which the premium depend are - 3 the nature of business the number of people you employ your previous insurance claims history Employees injured due to an employer's negligence can seek compensation even if the business goes into liquidation. Public liability insurance If members of the public or customers come to your premises or you go to theirs, you should think about taking out public liability insurance. Coverage • Legal fees, costs and expenses caused by you or your business. Premium Pay Factors Exemption Specific to the insuring company Type of business, turnover and number of employees. Professional indemnity insurance If you are in the business of selling your knowledge or skills, you may want to consider taking out professional indemnity insurance. Coverage Professional negligence, Loss of client documents or data, unintentional breach of copyright and/or confidentiality, Defamation and libel, Loss of goods or money. Who should take it? Lawyer, accountant or financial adviser, consultants, IT professionals, teachers and private tutors, recruitment professionals, designers. Premium Pay Factors Depends on your firm's circumstances. Directors' and officers' liability If your company's directors or officers are found to have inadvertently acted outside their terms of reference and this gives rise to a claim, then any compensation and legal fees will be covered by directors' and officers' liability insurance. Coverage What it does not cover? (1 It will cover from issues arising out of breach of trust, breach of duty, neglect, misleading statements, wrongful trading. Does not cover claims made against your organisation as a whole. 2013 In 2013 insurers paid out an average of £7.0 million a day in liability claims of which £2.7 million is employers' liability GOODS IN TRANSIT DIRECT Be Sure & InsIve With Us www.goodsintransitdirect.co.uk Sources: https://www.abi.org ukinsurance-and-savings/Products/Business-insurance/l.iabity-insurance/Employers-liability-nsurance http://www.markeluk.com/usetul-information/what-is-protessional-Indemnity-insurance.aspx https://www.abi.org.uk/insurance and savings/Products/Business insurance/Liability insurance/Directors and-officers liability insurance http://www goodsintransitdarect .co uk/what-is-kability-cover/ CH