subject: Understanding Business Insurance For Liability [print this page] There are different types of commercial insurance you need, if you own a business in the UK. Understanding the types of liability insurance is important. You are required to carry public liability insurance to protect the general public and the employer's liability cover to protect your employees.
When you want to protect your business, there are three categories to consider about liability insurance. They include general liability, which includes employees and general public.
Professional, which includes errors and omissions when offering advice to the public. And product liability, which protects the general public and your business in the event of injury caused by your products.
Essentially, the term used to refer to any potential loss suffered by a person or property damage that is caused by the negligent acts of your business or employees, whether intended or not. You might choose to compensate the injured party for minor claims, but for major liability claims, you want the protection of insurance cover.
For this reason, all businesses need public liability insurance, as well as employers' liability cover because it is hard to protect against these larger claims. It is also the reason you need to consider professional and product cover for the most adequate protection.
General liability insurance is the most common type of business insurance. Should you have a customer that gets injured on your property it will protect your company from almost any kinds of litigation. It will also cover the general public, if your employees cause injuries when they are away from the workplace and it will cover any property damage they cause. This would be the type of liability cover that would apply to service vans, for example. General insurance can be referred to as public liability for customers and employers' liability to cover your employees, if you have them.
Professional liability insurance is also called errors and omissions cover and it is also known as E and O insurance by some. If you are a professional that talks with and gives advice to customers, deals with their finances and personal assets or provides personal services to the clients or customers, as in the case of doctors, solicitors, accountants or banking and financial advisors, you need this type of insurance cover to protect against intangible damages, as well as negligence, such as malpractice, or errors made by your employees.
This is important business insurance to have if you offer advice to the general public, because even simple misunderstandings can result in errors and omissions claims under professional liability.
The final type of insurance is product liability cover, which applies to businesses that manufacture and sell products to the general public. This type of business insurance cover will protect your business in the event your product is the basis of a lawsuit that results from injury caused by your product.
Even product lawsuits that might not seem to be negligence on the part of your product can be lost in court, so it is important that your business is protected because legal expenses can be quite high and court awards can be, too. The important thing is that you have the protection that business insurance provides.
by: Tom Jones
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