Liability Insurance is designed to pay any compensation and legal costs that occur if an employer is found to be at fault.
Employers Liability the exposure risk is assessed on the basis of the number of employees and the size of the payroll.
For public and product liability the exposure risk is based on the turnover and factors such as whether you work on site away from your premises.
Product Liability is defined as any physical item that is sold or given away.
Products must be fit for purpose and under the consumer protection acts in many countries, you are legally responsible for any damage or injury that a product you supply may cause.
Your Responsibilities If you supply a product and something goes wrong with it, claimants are likely to claim from you first even if you did not manufacture the product.
The nature of the risk, i.e. the viability of a claim, and premium, is affected by who the product is sold to, how and when it is used and any warnings or labels that are provided.
Product Liability Insurance should cover you against unforseen circumstances. Bad workmanship is not covered. If you make an inferior product, your claim may be refused.
Liability Insurance
Public Liability Insurance If members of the public or customers come to your premises, or you go to theirs, you should think about taking out public liability insurance.
What does this insurance cover? Any awards of damages given to a member of the public because of an injury or damage to their property caused by you or your business. It also covers any related legal fees, costs and expenses. Premiums depend on the type of business you run, annual turnover and the number of employees.
If you work from home and if customers or members of the public visit you there, you may wish to consider taking public liability insurance.
The cost of insurance - known as the premium - is typically calculated
as a book rating. Add the insurers costs and his appetite for your particular business or industry category. The premium will be affected by your claims history, the insurers estimate of the level of industry risk, the size of the perceived risk and your approach to risk management.
This is an area where dMAC can assist in presenting your case to the insurer in the best possible light.
dMAC designed Insurance
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