Insurance Services > Commercial > Liabilities


Liability policies come in many forms. Consider the following:
Employers' Liability
Public Liability
Products Liability
Professional Indemnity
Contingent Liability
The specifics of these named policies will be addressed below but they all share a common fact. Each policy is designed to meet your legal liabilities under British law.

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If you assume additional responsibilities by way of contract or agreement then those extra liabilities will not be covered in your liability policy - unless you have informed the insurer about this and agreed terms for extending your policy.

Please discuss any concerns you may have with Corrigans and we will be happy to address those points on your behalf.

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Employers' Liability
An employers' liability policy provides compensation for any employee or their family in the event of them suffering accident, injury, disease or even dying as a direct consequence of their employment with you.

Legal costs and other expenses incurred in presenting, assessing or defending a claim are also covered and many policies go on to provide personal protection for the cost of defending criminal action taken against you, your partners or fellow directors arising from such incidents.

Whilst UK law only requires a minimum cover of £5 million, it is the practice of almost every insurer in Britain to provide no less than £10 million for any one event. You may think that this is a vast sum of money but the British press frequently carry items describing substantial compensation payments in the event of personal injury.

Please talk to us about the most appropriate level of cover for your business.

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Public Liability
A public liability policy protects you against claims from people that you do not employ for any accident, injury, disease, death or damage that they suffer through the ordinary activity of your business or its workforce.

In this instance cover is usually restricted to a maximum of £1 million per event plus the cost of mounting a defence to any claim. Extensions are often found to compensate the business for the loss of time when workers need to attend court in the defence of a claim, together with legal expenses that may be incurred to defend the owners of the business if they should be prosecuted personally as a result of any incident.

Claims made by people or businesses in North America and Canada tend to be more frequent and for appreciably higher amounts than elsewhere in the world and so all insurers expressly exclude cover for those countries unless it has been specifically agreed in advance.

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Product Liability
The goods that you sell may cause accident, injury, disease, death or even damage to other property and claims for compensation of up to £1 million per period of insurance (note this is not a limit per event but per year) can be covered by a products liability policy.

Any costs incurred in defending the claim are usually paid in addition to the limit per event, and there is some compensation for the business if employees need to attend court as part of that defence. Again claims for sales in North America and Canada are expressly excluded unless this has been specifically agreed in advance.

This type of cover should not be confused with product recall insurance, designed to meet the cost of replacing items that have already been sold or repairing defects that have been found in items that are already in the marketplace. Your products liability policy can be extended to include products recall cover, but careful thought should be given to exactly how much insurance you will need because the cost of any one claim is usually very large indeed.