Whether a firm or individual, liability insurance must be obtained as soon as a policyholder becomes an employer. Further still, the policy must provide at least £5 million cover and be from an authorised insurer.

UK General’s liability cover protects policyholders in case a third party holds them responsible for causing an incident and wants to pursue a claim in a court of law. With the option of the two most common types of cover being Public and Employers’ liability insurance, they offer firms or individuals protection from claims from members of the public and company employees respectively.

Employers’ liability insurance will cover you should you need to pay out compensation if an employee becomes ill or injured because of the work they do for you. Alternatively, Public liability provides cover for claims made by members of the public who suffered injury, damage or financial loss in connection with the business. You may also be responsible for a situations whereby the individual is unhappy with the advice provided by your firm, i.e. they may sue for compensation.

Liability insurance cover details

What’s covered
  • Up to £5 million protection.
  • Employers’ liability – policyholder’s legal liability to their employees.
  • Public liability – policyholder’s legal liability to members of the public.
  • Legal defence costs and compensation.
What’s not covered
  • Circumstances that were known to the policyholder prior to taking out cover.
  • Punitive, exemplary or aggravated damages awarded against the policyholder.
Optional cover
  • Personal accident.
  • Tools/business equipment.
Ways to trade
  • Schemes – Build your business by offering bespoke personal lines insurance which meets your customers’ exact needs.

Explore the Liability insurance market

Market information
  • In 2014 liability insurers paid out claims of £8.9 million, of which £2.9 million was for employers’ liability.1

1: https://www.abi.org.uk/~/media/Files/Documents/Publications/Public/2015/...