The many risks

As a business owner you are typically at risk from many areas. Examples of these include:

• damage to the contents or shell of the building you hold your business in;

• events such as fire and flooding.

These are just the more common risks associated with a business and some of the things that may be included in a standard business insurance policy. Of course, as with any type of insurance, what you actually get in the policy depends on the insurance provider, the type of business you are insuring, and the level of insurance you choose to take out.

Public liability insurance

Bear in mind that if you run a business that involves the public coming into your shop or premises, then public liability insurance has to be considered. Imagine the costs that may be involved if a member of the public were to slip on the floor on your premises. The legal costs might add up to thousands of pounds and if you do not have insurance behind you, this money has to come out of your livelihood. In the worse case, it may even mean that you have to sell your business to come up with the money.

Employers’ liability insurance may also be legally required if you employ staff in the workplace. This typically works on the same principle. If a member of staff were to suffer an injury or death whilst on your premises legal costs may mount up. With this in mind when looking for business insurance you may wish to check whether you have both public liability insurance and employers’ liability insurance included, and if so how much.

What does employers’ liability insurance do?

This policy typically provides financial protection in the event that an employee makes a claim against you for an injury or illness sustained while going about their day to day business or on your premises.

If you run a business, you may think that nothing will ever go wrong – for example, you will never be sued or accused of negligence. However, some things are beyond our control and things can, and do, go wrong. And in today’s society, where suing people is the norm, your livelihood could be at risk if an employee decides to make a claim against you for something unexpected.

Professional indemnity insurance can help your business to overcome unexpected hurdles and minimise any financial loss – as well as the undoubted stress you will personally face – in the event of a claim against it.

If you were faced with a business claim against you or your company, [KEYWORD] could step in and provide a number of benefits, such as assistance with legal costs and claims for damages. This would keep your business running where it otherwise may fail.

So, where do you go if you want to buy employers’ liability insurance cover? Specialist providers of liability products may be an option – they will often have unlimited expertise in the sector, as well as a choice of policies, enabling them to provide cover that is suitable for your needs.

Do note that as with all things financial and legal, policy terms and conditions do vary among the different providers. Check the small print to confirm the amount of employers’ liability cover you have; any excesses; and how long a policy must be in force for before you can claim.

Employers’ liability insurance is not just a legal requirement – it provides a financial safety net should your business be the subject of a claim against it, so never under estimate its importance.

By law, therefore, the required employers’ liability insurance must provide a minimum of £5 million cover and, in practice, most such insurance policies provide at least £10 million. This is designed to provide protection – for both the business and the employee – for even the most serious incidents involving the death or injury of an employee at work or compensation for an illness or medical condition contracted through that work. Such claims might include the provision for long-term medical care, for example, and even where treatment is provided by the National Health Service, these costs can be reclaimed from the liable business by the health service.

The official Health and Safety Executive carries out the duty of law enforcement with respect to employers’ liability insurance and is responsible for the prosecution of cases where the relevant insurance has not been obtained. Fines of up to £2,500 a day can be imposed on employers who have failed to arrange the appropriate insurance and fines of up to £1,000 can be imposed on those businesses that fail to display the relevant insurance certificate or to produce one at the request of visiting Health and Safety Executive inspectors.

It is in the nature of such risks, of course, that claims can arise many years after the employee’s or former employee’s exposure to the work alleged to have caused a medical condition or illness. It is prudent, therefore, to ensure that full details of any employers’ liability insurance are kept for a long period of time. Any claims will be based on the period of time which it is alleged that the employee was exposed to the working conditions that gave rise to the illness and unless the employer can call on adequate employers’ liability insurance, then any claims for which the business was liable will need to be met by the business itself.