Introduction - it is common nowadays for most forms of business
insurance contract or "public liability package policy" as they have become
known to include a section with cover tailored to the actual trade
requested by the customer. Other policy types include; Motor, Engineering,
Marine & Aviation. The cost of the public liability insurance is very
much governed by the trade and activities of the policyholder and cover is
available for almost any occupation even high risk is available. Other
factors taken in to consideration before a public liability insurance
policy 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 public liability 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 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 policies can be extended
to include tools. Public liability to 3rd 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.
Professional Indemnity insurance - 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.
Assetsure is an Appointed Representative of Intasure, a trading name of Blenheim Park Limited who are authorised and regulated by the Financial Services Authority. Assetsure Limited is an appointed representative of Highhouse Insurance Services Limited who are authorised and regulated by the Financial Services Authority.
For
Business with or without premises 
