Professional Indemnity
Any small business is vulnerable to a claim of
negligence when professional advice or services fail to meet a client’s
expectations and cause financial loss. This policy offers cover for
compensation you may need to pay to correct a mistake or cover any legal costs
due to negligence, such as giving incorrect advice.
You may need to consider this cover if you:
- Provide advice to your clients
- Handle data belonging to a client
or business
- Are responsible for a client’s
intellectual property
- Provide a professional service and
could be challenged on your work.
Employers Liability Insurance
If you employ members of staff in the UK you are
required by law to hold Employers Liability insurance under the Employers
Liability (Compulsory Insurance) Act of 1969. This states that employers must
insure against liability for injury or disease to their employees arising out
of their employment. This cover must provide at least £5m indemnity (usually
£10m) and a certificate will be issued by the insurer confirming that cover is
in place. This certificate must be displayed at the business where all staff can
access it.
The PAYE Employer Reference Number (ERN) must be
supplied to the insurers to populate the Employers Liability Tracing Office
(ELTO) database. This number can be found on payslips and mandatory documents
such as P45, P60 and P11d and is used to assist any claimants who may suffer
from accident or disease in the workplace, to trace the employers liability
insurer.
Sole traders without employees will not require
this cover.
As an employer, you are responsible for the
Health and Safety of your staff. If you have five or more employees, you will
need to have a Health and Safety policy in place in accordance with the
requirements of the Act, ensuring you have the minimum level of cover in place
should an employee try to claim compensation if an injury occurs in the
workplace.
Without this cover you would not only be
breaking the law, but any claim directed against you could possibly put you out
of business.
Public Liability Insurance
This provides cover against claims made by
members of the public who may suffer from injury or property damage in
connection with the business. For example, a member of the public suffers
injury on your premises as a result of tripping over an electrical cable or
piece of loose carpet.
It is possible to minimise such risks of course,
by making sure that any hazards are clearly marked, no risks of tripping or
slipping, and ensuring that staff are made aware of such potential risks.
However, accidents do happen and that is why it
is essential to have such cover in place.
This cover is designed to provide compensation
and possible damages awarded to a claimant if you are found to be legally at
fault for the accident.
Public Liability also provides cover for
incidents which may occur whilst visiting a customer’s premises. Your clients
or customers will usually require you to have Public Liability cover in place
before agreeing to work with you or undertake contract work on their behalf.
Various indemnity limits are available usually
£1m £2m or £5m. Higher limits may be required for work in hazardous areas or
for companies conducting high risk business. In this case an Excess of Loss
policy can be sourced.
Products Liability
This protects against injury to customers or
damage to their property caused by a product you have sold or supplied. This
cover usually runs in tandem with Public Liability.
Property Owners Liability
If you own premises this covers you against
injury or damage suffered by visitors to it, for example tripping over a loose
paving stone for which you are responsible.
Business Interruption
Should your business suffer from material damage
such as a fire or flood, the disruption may affect the ability of your business
to continue normally. This cover provides for any loss of profits or revenue
while the business is unable to trade.
Material Damage
You will no doubt have invested money in
business tools and equipment, computers, buildings and the like. These are
essential to the running of the business and any loss can have a devastating
effect unless appropriate cover is given.
Les Hiftle was born and
bred in Newcastle upon Tyne and has over 30 years experience in both the
Personal Lines and Commercial Insurance Industry. He began employment (in black
and white) at RAC in Jesmond and moved to Gordon Keddie Insurance Ltd as a
Commercial Insurance Handler until the company was absorbed by Northern
Counties Insurance in 2004.
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