It is important to know which type of insurance is right for you and your business. Having the wrong or no insurance could result in more than just a financial loss.
This article is here to help you decide which is the best insurance package for your Limited company.
Employers Liability Insurance £10m (E/L)
E/L provides valuable protection against any costs and compensation awards you are legally liable to pay resulting from injury or disease to any employee during the course of their employment. This is a compulsory insurance and most agencies will insist on this type of cover.
Public Liability Insurance £5m (P/L)
P/L provides valuable protection against any costs and compensation awards you are legally liable to pay resulting from accidental injury or disease to any member of the public or business or any accidental loss or damage to their property. As above most agencies will insist on this cover.
Here are some scenarios in which you would be covered by public liability insurance:
- Injury - If someone were to trip, slip or fall and cause themselves injury.
- Accidental damage - A shelving unit falling off a wall and causing injury to a member of the public.
- Legal cover - In the event that you have to attend court or need a solicitor.
Professional Indemnity Insurance £5m (PI)
PI provides essential financial protection for you, in the event that your client suffers a loss as a result of an alleged negligent act, error or omission arising from the provision of professional services. Professional Indemnity Insurance will meet the cost of defending claims and any damages payable. Any person who gives advice, designs, or offers similar services in a professional capacity is seen by clients as an expert. In these times of high consumer awareness, clients will not hesitate to pursue a claim if they feel that they have suffered a loss resulting from your negligence. The need for Professional Indemnity Insurance has therefore never been greater and indeed, many agencies have a mandatory requirement for it.
This is different to accidental damage which would be covered by public liability insurance.
Personal Accident Insurance (PA)
Provides valuable protection for you in the event that you suffer an accident either while on site or while travelling to site and cannot return to work as a result. Note most Personal Accident claims occur during commuting.
Scenario one - The problem
You've designed a new sound system for a client's new office but the design was flawed and resulted in an additional cost to the client meaning you could be liable to cover their losses.
Scenario one - The necessary insurance
In this situation professional indemnity insurance would cover any legal costs you had incurred.