LIABILITY INSURANCE

Liability insurance provides the contractor with protection from claims arising from injuries or damage to other people or property.

Liability insurance forms the core insurance protection of any contractor. Such cover is normally checked by contractors customers and/or employers prior to work commencing.

The two main types of liability insurance are employers and public/products liability. Both can be combined into one policy.

EMPLOYERS LIABILITY

Employers liability is a protection for the contractor against claims made upon him by his employees or labour only sub-contractors, for death, injury or disease sustained while they are work for which the contractor can be held legally liable.

Since 1971 it has been legally necessary for employers to insure against this risk. Cover is normally £10 Million Indemnity.

PUBLIC LIABILITY

Public Liability is a protection for the contractor against claims made upon him for bodily injury (other than those covered under employers liability) or damage to property for which the contractor or his workforce can be held liable.

Cover is usually limited to £1 Million Indemnity but many local authorities require cover increased to £5 Million Indemnity or even £10 Million Indemnity.

PRODUCTS LIABILITY

Another important area which can be included is the liability which can arise for accidental injury sustained by or accidental loss or damage to the property of third parties arising from defects in goods sold or supplied by your business (Products).

PROPERTY OWNERS LIABILITY

Property owners liability insurance is a protection against claims made upon the landlord/property owner for bodily injury or damage to property for which the landlord can be held legally liable. Cover is usually limited to £1 Million Indemnity but can be increased as required. Such cover is usually a standard part of property insurance.

DIRECTORS & OFFICERS LIABILITY

Directors and Officers Liability Insurance provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company. Think of Directors and Officers Insurance as a management Errors and Omissions policy. Cover can usually include Employment Practices Liability and sometimes Fiduciary Liability. The former involves harassment and discrimination suits, and is where the majority of your exposure will be.