Business Liability Insurance UK Guide

As a business insurance brokerage we can advise on and protect against a wide range of liabilities

Compare liability insurance for business

tick
Ensure you're protected against a range of potential legal allegations with business liability insurance.
tick
Comprehensive and tailored liability insurance is available online for companies with a turnover up to £100m turnover.
tick
At get indemnity we can provide a range of business liability insurance quotes, typically within 48 hours of completing our online application.

Business Liability Insurance UK Guide

Compare different types of liability insurance that can transfer risks from your balance sheet

Companies are exposed to a range of liabilities in the course of their business activities. Good risk management recomends the transfer of risk through business insurance to mitigate the potential cost of an unexpected event.

Compare insurance quotes for business liability with get indemnity by completing our digital on-boarding process

How to compare business liability insurance cost?

 

Business Liability Insurance FAQs

  1. What is business liability insurance?
  2. What liability insurance should we consider?
  3. How can liability insurance offer protection?
  4. What is the principle of indemnification?
  5. What are long-tail liabilities?
  6. What are limits of liability?
  7. What are defence costs?
  8. What is the duty to defend?
  9. How to compare business liability insurance quotes?


What is business liability insurance?

Business liability insurance encompasses a number of different covers that offers legal costs in defending allegations, and protects against damages resulting from any judgment, award or settlement.

Liability insurance definitions can vary, therfore it is worth considering the terms and features to understand what cover best meets your demands and needs.


What liability insurance should we consider?

     

Employers Liability Insurance UK Guide

Public Liability Insurance UK Guide

Product Liability Insurance UK Guide

Professional Indemnity Insurance UK Guide

Management Liability Insurance UK Guide

Trustee Indemnity Insurance UK Guide

Employment Practice Liability Insurance (EPL)

Directors & Officers Insurance UK Guide

Contractors All Risk Insurance UK Guide

To receive business liability insurance quotes from the wholesale market, please complete our online application.


How can liability insurance offer protection?

Employers liability insurance protects against claims arising from injury or illness of your employees.

Public liability insurance protects against claims arising from injury or property damage of persons other than your employees.

Product liability insurance protects against claims arising from injury or property damage as a result of a fault with a product you have provided.

Professional liability insurance protects against the failure to exercise reasonable skill and care in provision of professional or advisory services.

Management liability insurance is a package policy designed to protect small to medium sized businesses, with D&O liability insurance offered as the main cover.

Trustee liability insurance protects individuals from claims and investigations, which may arise while acting in their capacity on behalf of an organisation.

Employment practice liability insurance potects against claims arising from a wide range of employment disputes.

Contract works liability insurance protects the work in progress on a construction site in the event damage before responsibility has been handed to the principal.


What is the principle of indemnification?

Indemnification is one of the core principles of liability insurance:

The insured should not profit from a loss or damage but should be returned to the same financial position before the loss or damage occurred.

The insured cannot profiteer and recover more than his or her actual loss. There are, however exceptions to this rule, such as personal accident and life insurance policies where the amount is paid on occurrence of accident or death.


What are long-tail liabilities?

Civil actions can take years for a claim to be made, the statute of limitations for a tort (civil wrongdoing) is six years. Long-tail liability means there is potential for a claim to be made against you for an extended period after the event occurred.

In addition, it can also take an extended period to settle the claim. This potential for a long settlement period means liability insurance claims are often called long-tail liabilities.


What are limits of liability?

The limit of liability is the maximum amount for which an insurer may make payment under the policy.

It is worth acknowledging that limits of liability can work on a different basis. For example, some liability insurance policies work on an 'aggregate' basis (the total amount payable), or on a 'any once claim' basis (the total amount payable for claims arising from any single event).


What are defence costs?

It is common for defence costs to represent a higher amount than the settlement or damages awarded under a liability insurance policy. Consideration should therefore be given to the total limit of liability your business requires.

For example, it is recognised that defence costs for products such as D&O Insurance can typically amount to over 60% of the total cost of the claim.


What is the duty to defend?

A duty to defend provision provides the right to select legal counsel and control the defence of a claim.

In some business liability insurance policies (i.e. EPL Insurance) the insurers will want to protect their interests in managing the cost of your claim. They will have a panel of law firms ready to respond to defend claims made against you.

Whereas, with some insurance policies (i.e. D&O Insurance) it is the duty of each insured person to select legal counsel and control the defence of a claim. The insurer will reserve the right to be consulted prior to any spend against the policy.

At get indemnity we can provide guidance on your rights and responsibilities under your business liability insurance policies.


How to compare business liability insurance quotes?

As a specialist insurance broker, we have the capacity to identify a range of business liability insurance quotes to meet your needs.

Whether you operate a small business or medium sized business (turnover less than £100m), we can identify and access insurers that can provide the cover you require to protect your business.

Compare business liability insurance quotes from the wholesale market by completing our online application.

 

Compare business liability insurance quotes


This guide is for information purposes and based on sources which we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.