Business liability insurance - important now more than ever

Never a more important time for business liability insurance

Today's economics climate has caused billions of pounds worth of problems for companies - both large and small. As more and more businesses find their backs are up against the wall, one significant and unexpected cost could easily finish them off. So now - more than ever - is the right time to examine your business liability insurance and any potential risks you may face.

Type of business liability insurance

Business liability can come from a number of angles and there's an insurance product designed for each. These liability protection products can usually be combined into one policy to reduce your admin and give you some cost savings too.

This form of insurance enables your company to meet the costs of damages and legal fees for employees who may make a claim having been injured or fallen ill at work as a result of the action of the employer. Employees can seek compensation even once the company has gone into receivership or liquidation and the NHS can also claim for the cost of hospital treatment when a personal injury claim is successful.

If your business interacts with members of the public in anyway - if they come to your premises or you visit theirs - public liability insurance can provide you with cover for any awards of damages as a result of damage caused to a member of the public or their property. The premiums are based on the type of business and the level of public facing activity.

Any company selling a product to the public must ensure they are 'fit for purpose'. Product liability insurance is designed to cover your for damages and legal fees resulting from claims made against your legal responsibility. Even if you're just a supplier in a chain, someone could make a claim against you first and you may then need to claim from your supplier or manufacturer. But this would entail you putting up the legal costs for both claims upfront. This is where product liability insurance can protect you from financial ruin.

Where product liability insurance is designed to cover physical products, professional indemnity insurance is set up to deal with negligent advice and services where similar damages and claims may arise. For some professions and occupations, it is a legal requirement to have professional indemnity insurance cover.

Finding the best business liability insurance policy

The rise of insurance comparison websites has concentrated on the more mainstream products to date. But business insurance comparison is a growing market and the tools being developed here can save you from hours on the phone and form filling by comparing the leading business insurers in seconds.