Employers have a legal obligation to carry Employers Liability Insurance which indemnifies the employer in respect of injury to its employees for which it is legally responsible. It is generally accepted by members of the Association of British Insurers that the minimum indemnity limit should be £10m. An employee is deemed to be any individual under a contract of service or apprenticeship with the insured, whether the contract is actual or implied.
When organising stock and contents insurance it is necessary to select the range of ‘perils’ which will be covered. It is standard to arrange either an ‘All Risks’ or a ‘Fire, Theft and Specified Perils’ policy.
Public & Products Liability
Although not a legal requirement, Public & Products Liability should be considered essential. Public Liability provides indemnity in respect of the legal liability for damage or injury caused to third parties or their property by the company. Products Liability indemnifies in respect of the damage caused by an inherent defect in a product supplied.
Following a loss of equipment or premises, a business may not be able to trade as normal until a replacement has been made.
A companies commercial insurance requirement is not a subject that can be covered in an article, due to the complexity of analysing a company’s insurance requirements and then organising suitable insurance policies, the advice of an independent and professional insurance consultant is invaluable. The importance of the correct cover will only become apparent in the event of a claim – when it is too late to begin thinking about your needs.