Liability insurance

If you are looking for liability insurance cover for your company, Warrings offer a number of products through our arrangements with some of the country’s largest insurers.

What is liability insurance?

Liability insurance is primarily designed to provide protection against the risk of being sued for negligence by a third party. Such policies therefore typically provide cover for third party property damage and personal injury. In the event of a claim against a business’ liability insurance, any payments made do not generally get paid to the policyholder, but directly to the individual or entity that has suffered the loss. This is generally a third party individual or their insurer. Claims against liability insurance policies are usually defended by the insurance company underwriting the risk, or their agent. Protection levels for cover can vary enormously depending on the level of risk involved.

Liability insurance is a compulsory legal requirement for certain classes of business. For instance in the UK, it is a mandatory legal requirement for car drivers to hold third party liability insurance cover. Certain businesses also require mandatory cover. As an example many professionals are required by law to take out liability insurance including doctors, dentists, accountants and solicitors. This form of liability insurance is more commonly known as professional indemnity insurance. This cover provides protection for the general public where they are at risk of loss, damage or personal injury as a result of negligence by the professional.

As well as professional indemnity insurance, liability insurance also encompasses product liability insurance, public liability insurance, and employers liability insurance.

Public liability insurance is compulsory for businesses where the general public frequent the business premises. Pubs and restaurants for instance carry an inherent risk of injuring their patrons through food poisoning or from slipping hazards from spillages. Risks are considered heightened anywhere that food or alcohol is served or where sporting events take place such as bowling alleys or large sporting complexes or arenas.

Almost all insurance claims arising from accidents against a liability insurance policy are dealt with under common law usually by way of a civil action using principles established in case law.

Whilst product insurance is not compulsory for all businesses in the UK, manufacturing businesses and companies supplying goods are obliged to take out some form of product liability insurance. This is usually taken out as part of a combined commercial insurance product. If you are in any doubt as to whether your business should carry product insurance you may wish to refer to the Consumer Protection Act 1987 and the EC Directive on Product Liability. PDFs of these pieces of important legislation are contained in the PDFs at the foot of this page.

Employers liability insurance is mandatory in the UK for any business which employs staff. Employers liability insurance affords cover to employees where they are subject to injury as a result of the employers negligence. Warrings are able to arrange cover for a wide range employers, in many different sectors.

At Warrings we have a team of experts in liability insurance for businesses. To speak to someone about your liability insurance needs call 0844 209 0566 or complete the online enquiry form and we will contact you at your convenience.

	Consumer Protection Act 1987
	Guide to the Consumer Protection Act