Business & Liability Insurance FAQs
What is business insurance?
Business insurance is a type of coverage that protects your company from various risks, including property damage, legal liabilities, and employee-related injuries. It helps mitigate financial losses due to unforeseen events.
What does public liability insurance cover?
Public liability insurance covers claims made by members of the public for injuries or property damage resulting from your business activities. This includes incidents occurring on your premises or during business operations elsewhere.
Is public liability insurance a legal requirement in the UK?
While public liability insurance is not legally mandatory for all businesses, it is highly recommended for many trades and sectors, particularly those that interact with the public. Certain businesses may require it to comply with contractual obligations.
What is employers' liability insurance?
Employers’ liability insurance is a legal requirement for businesses in the UK that employ staff. It covers your liability in case an employee becomes ill or injured due to their work, protecting you against legal claims.
How much public liability insurance do I need?
The appropriate level of public liability insurance varies depending on your business type and the risks involved. Many businesses opt for coverage between £1 million to £10 million, but you should assess your specific needs and consult with an insurance adviser.
Does public liability insurance cover product-related claims?
Yes, public liability insurance often includes product liability coverage, protecting your business from claims related to injuries or damages caused by products you supply, distribute, or sell.
How can I reduce my business insurance premiums?
You can lower your business insurance premiums by implementing risk management strategies, maintaining a good claims history, increasing voluntary excesses, and bundling insurance policies. Shopping around for competitive quotes is also beneficial.
What should I do if I receive a claim against my business?
If you receive a claim, notify your insurance provider immediately. Document all relevant information and correspondence, and do not admit liability or settle the claim without consulting your insurer.
Can freelancers and sole traders benefit from liability insurance?
Absolutely. Freelancers and sole traders can greatly benefit from liability insurance, as it provides essential protection against claims that may arise from their services, ensuring financial security even in the face of unexpected incidents.
What are the common exclusions in business insurance policies?
Common exclusions in business insurance policies may include claims resulting from intentional acts, employee injuries (covered by employers’ liability insurance), wear and tear, and losses due to changes in laws. Always review your policy to understand what is and isn’t covered.