Insurance

Employers Liability Insurance

Unlike in Ireland, Employer’s Liability Insurance is compulsory in England and Wales.  The insurance must cover the costs of compensation and legal fees for employees who are injured or made ill in work by reason of fault on the part of the employer.  In practice, where an accident or injury occurs, it will be likely that it can be attributed to some element of fault or failure to observe occupational safety standards in the workplace, so that the employer may accordingly be made liable to pay compensation.

Employment Liability cover of least £5,000,000 is mandatory.  This mandatory requirement does not apply in the case of certain family businesses and where there is  only one employee who owns 50% or more of the company.  The Health & Safety Executive enforces the law and can impose fines.

The insurance policy must be issued by an authorised insurer in order to comply with the Law. The insurer should be a member of the Association of British Insurers.  The Certificate of Employer’s Liability Insurance must be displayed in the work place and copies of it must be kept for at least 40 years.

Product Liability Insurance

Products must be fit for purpose under Consumer Protection legislation.  A business is legally liable for any damage or injury that may be caused by its products.

A supplier of a faulty product can be liable, even if it does not manufacture it. The supplier can be liable

• if it provided the product;
• if the business name is on it;
•  if it was made by the manufacturer for the business;
• if the business repairs, refurbishes or changes it;
• if the business imports it into the European Union;
• if the manufacturer is not clearly identified or if the manufacturer has gone out of business.  Otherwise the manufacturer or the processor is liable. There are limited defences.

Product liability insurance covers the compensation as a result of damage to property or personal injury caused by a product. Product insurance is not mandatory.

Environmental Insurance

Pollution risk insurance covers loss or damages arising as a result of damage to the environment by sudden and unforeseen circumstances.  Claims are usually limited to third party claims and those who suffer loss as a result of pollution caused by the business activities. Policies generally cover once off incidents and matters and do not cover slow leakages.

Public Liability Insurance

Public liability insurance covers awards of damages given to a member of the public because of personal injury or damage to their property caused at the business premises. This will also cover legal fees.  Public liability insurance is not mandatory but makes good business sense.

Professional Indemnity Insurance

This covers the compensation in respect of the negligent provision of services.  Professional indemnity is a legal requirement for some businesses and may be highly advisable, even where it is not mandatory.

Directors and Officers liability

Directors and officers have duties and responsibilities in connection with their position. They can be held responsible for a range of issues.  If directors or officers are found to have inadvertently acted outside their terms of reference this may give rise to a claim.  Director’s liability policies are designed to cover such circumstances.