For all business owners, or employees, you have a legal responsibility towards the welfare of other employees, customers, and the public. Legally if you’re the person responsible for products and services you provide, you are liable, and can be sued if an employee, or a member of the public is injured as a result of your negligence or a breach of duty.
If you’re sued and a personal injury compensation claim is successful, you might also be facing a claim from the NHS for the recovery of costs for ambulance and hospital treatment. (NHS claims are for accidents which have occurred from 29th January 2007).
Liability insurance was introduced to cover any legal and compensation costs, which may be awarded against an employer who is found to be at fault.
If you employ others then it is most likely you will need (ELCI) employers’ liability compulsory insurance. ELCI requires employers carrying out business in the UK to insure their liability to their employees against bodily injury or disease whilst in their employment. If you require more information on this type of insurance there are many resources on the internet which cover this. We will be covering (PLI) public liability insurance.
PLI is not a legal requirement but if you provide a service and a member of public or a customer comes to your premises, or you go to theirs, you should consider getting PLI.
The PLI covers you against any claims for damages, whether that be personnel injury, or damage to property, caused by you the service provider. It also covers you for any legal costs, and costs from NHS. If for any reason you cause injury or property damage and are sued, and as a result a court find you liable, and award to the third party a compensation figure against you, this could seriously damage your finances, even make you bankrupt.
PLI can be from as little as £60 a year and would cover you against financial ruin, in the event some does go wrong. We are just pointing out some key facts. We are not a professional insurer. There may be conditions, exclusions, and warranties that can be applied to the PLI policies. We strongly recommend that you talk to a insurance professional. You can search for insurance companies who can deal with your enquiries from our services drop down menu, found on our home page.
