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Public Liability Insurance for Employers, Schools and Business Owners
Introduction - Home Insurance and Commercial
Building Insurance will almost without exception contain a section covering
the policyholders liabilities. With the insurance of buildings the public
liability section is often referred to as Property Owners Liability. Further
It is common nowadays for most forms of business insurance contract or"
package policy" as they have become known to include a liability section with
cover tailored to the actual trade requested by the customer. Other policy
types that include a liability section include; Motor, Engineering, Marine &
Aviation. Almost all other types of liability policy fall under the
heading of general liability contracts and include the categories.
Public Liability Insurance
Employers Liability Insurance
Products Liability Insurance
The cost of the insurance is very much governed by
the trade and activities of the policyholder and cover is available for almost
any occupation even high risk liability is available. Other factors taken in
to consideration before a public liability quote can be prepared are, the wage
roll and turnover of the business ( the greater the turnover and wage roll,
the more expensive the premium). The markets or countries in which the
policyholder is operating and the type of goods supplied ( if any). Details of
previous claims and the amount of indemnity required are also needed. Many
insurers offer a per capita form of liability cover without the need for wage
roll and turnover and this is usually sold to self employed persons such as
Builders, Plumbers, Carpenters etc. In some cases liability policies can be
extended to include tools. Liability to Third Parties can occur in a
number of ways:-
Negligence - Liability can arise from an act
of negligence if someone acts or fails to act in a certain way. It is up to to
the courts to decide what is a reasonable manner. Negligence can occur when a
Tradesperson is working at a customers home and manages to damage property or
perhaps a roofing contractor manages to drop tools on a passer by On a more
personal note, individuals can often be the cause of accidents which can lead
to a personal claim for injury or damages.
Nuisance - This can be defined as a wrong
doing by unlawfully disturbing a person in the enjoyment of his property.
Often Nuisance can be caused by industrial operations and even claims for
noise are considered.
Trespass - is an unlawful act committed with
force or violence on the person or property of another.
Strict Liabilities - these are liabilities
that are imposed by law even where the business or individual person could
prove reasonable care. In many countries liabilities are regarded as being
strict so as the injured party can make a claim without having to prove
negligence. In 1987, the consumers protection act introduced strict liability
form injuries caused by defective products.
Statutory Liability - these are liabilities
that have been introduced by law, even where the policyholder has exercised
care. In the Hotel Industry, Hotel proprietors are responsible for a small
amount of guests belongings brought in to the Hotel. The 1956 Hotel
Proprietors Act which limits a hotel's liability for loss, damage or theft
from a hotel room to just £50 for one item or £100 for multiple items is often
used when guest have their effects stolen from rooms. However, a notice of
limited liability has to be displayed and the proprietor could find himself
fully responsible for losses if he fails to disclose the necessary notice.
Contractual Liability - an Individual or
business may assume additional liabilities under the terms of a contract
negotiated with a Third Party. When requesting a public liability insurance
quotation, it is vital that any such contractual liability is disclosed to the
underwriters and an agreement obtained that cover will be provided.
The covers applicable are as follows;
UK Public Liability Insurance provides protection for either
individuals or business against claims from Third Parties caused by bodily
injury or disease or damage to their property. It is important to note, that
this type of cover will only provide indemnity if the policyholder is legally
liable for the occurrence, negligence has to be proved. In many cases
accusations prove to be unfounded, the policy will also cover the cost of
dense of the claim, costs which can often be expensive. The cover is issued in
respect of the insured activities as disclosed to the insurance company. It is
important that these activities are accurate as failure to provide the correct
details may lead to an inaccurate quotation at at worst cover may not be in
force. Cover will exclude claims from Employees and property damage may be
restricted. Most home insurance polices will also contain a personal liability
section, this cover is affordable to individuals not carry our a business for
acts of negligence they are liable for. Under a public liability insurance
policy, the insurer will provide an indemnity limit, typical limits are
between one and five million pounds but for some trades higher sums are sought
and this type of contract is referred to as an excess of loss contract.
These days worried school headteachers and local councils are concerned about
the liability they may face in the event a pupil is injured at school and so
public liability insurance schools is becoming increasing popular.
UK Employers Liability Insurance is a
compulsory insurance, like motor insurance, this type of cover is governed by
statute in this case, the
Employers’ Liability (Compulsory Insurance) Act 1969.
You are responsible for the health and safety of your employees while they are
at work. and if any of your employees become injured at work, or they or your
former employees become ill as a result of their work while in your
employment, you may find they try to claim compensation from you if they
believe you are responsible. This type of cover is often referred to as
a long tail insurance contract as sometimes it is many years before claims can
come to the surface. With this in mind, certificates of employers liability
now have to be retained for a period of 40 years. Your insurer will provide
you with a certificate of cover each year The Act requires that a certificate
of employers liability is displayed at each work premises in a place where it
can be seem by employees. The purpose of the Act is to help protect employees
from injury or disease in the workplace and as such the definition of an
employee is quite wide and can also include volunteers, persons on work
experience programs and even members of staff that have been loan from other
companies. As an employer, having a well meaning volunteer force can prove to
be quite problematic if anything goes wrong. The Act also forbids insurers to
withhold claims money from an employee if the policyholder is in breech of
policy conditions. This has quite serious consequences for the individual or
company as almost certainly the insurance company will want to recover their
outlay thus providing accurate information is absolutely vital with this type
of cover. In February 2005, the law was changed to remove the requirement for
Employers Liability protection cover for
directors of limited companies where they are the only employee. The
Employers’ Liability (Compulsory Insurance) Act 1969 ensures that you have at
least a minimum level of insurance cover against any such claims. The minimum
amount required is £5,000,000 but £10,000,000 is the common sum insured
provided. It must be remembered that this insurance cover does not extend to
include the sale of goods that do not fit their purpose or act and further
does not involve injury or damage to property. Under the sale of goods act
1979 you are responsible for any loss suffered by the purchaser of your goods
for items that do not fit the purpose for which they were sold or are not of
merchantable quality.
Products Liability insurance provides cover against liabilities arising
out of injuries to third parties or damage to their property caused by goods
;supplied, sold, tested, serviced or repaired. This type of cover is usually
an extension of the public liability section of the policy. In respect of
establishments selling or preparing food, cover will include food poisoning.
A separate type of liability insurance cover comes under the heading of
Professional Indemnity insurance. This type of policy is usually sold on a
separate basis from the liabilities mentioned above. This contract is intended
to protect individuals or business that act in a professional capacity,
offering advice rather than selling goods. Examples of trades needing this
type of cover are Insurance brokers, solicitors, accountants, doctors,
architects etc. The indemnity is issued in respect of negligence against the
possibility of offering incorrect or misleading advice or just carelessness.
In order for a claim to be paid under this type of insurance contract, the
person making the claim must be able to prove that the policyholder failed to
exercise the reasonable skill and care that could be expected from a member of
the profession.
Copyright Assetsure Limited 2007
Assetsure is an Appointed Representative of Highhouse Insurance Services who are
authorized and regulated by the Financial Services Authority
Assetsure is an Appointed Representative of Intasure a
trading name of Blenheim Park Limited who are authorized and regulated by
the Financial Services Authority
UK
Public Liability Insurance for Employers, Schools and Business Owners